The
report shows that 68 per cent of TVET graduates in the digital economy secure
employment within six months of graduation, making technology-related careers
the strongest employment pathway among the sectors analysed.
Hospitality
and tourism follow with a 55 per cent employment rate, while construction
records 51 per cent.
Agriculture
graduates have an employment rate of 42 per cent, while manufacturing has the
lowest at just 38 per cent.
The findings say employers continue
to report shortages of skilled workers even as large numbers of technically
trained young people remain unemployed.
“Nearly half of TVET graduates
remain unemployed six months after graduation, despite employers reporting
skills shortages in the same sectors,” the report says.
KIPPRA estimates that skills gaps
cost the Kenyan economy about Sh50 billion annually through lost productivity,
additional employer training costs and missed value-addition opportunities.
The problem is particularly acute in
manufacturing, where employers report a very high demand for machinists,
welders, quality-control technicians and industrial electricians.
Yet only 38 per cent of
manufacturing-related TVET graduates find employment within six months.
The sector contributes about 7.8 per
cent of Kenya’s GDP, against a government target of 15 per cent, with skills
shortages identified as one of the constraints holding back industrial
expansion.
These shortages of skilled workers
“compel companies to import expertise, operate below capacity, or compromise on
quality,” ultimately hindering Kenya’s industrialisation and infrastructure
development goals.
Findings show that agriculture
presents a similar contradiction. The sector contributes about 22 per cent of
GDP and employs roughly 40 per cent of the workforce, but only 42 per cent of
agriculture-related TVET graduates secure employment within six months.
KIPPRA says the sector faces
shortages in skills such as precision agriculture, mechanisation, irrigation
management and agro-processing.
The skills gap also has direct
implications for agricultural productivity. The report notes that post-harvest
losses in horticultural value chains remain between 30 and 40 per cent,
partly because of inadequate technical skills in modern farming and value
addition.
It says training young people in
precision agriculture, mechanisation and value addition “could significantly
enhance productivity while creating thousands of jobs across agricultural value
chains.”
Construction offers a slightly
better employment outlook, with 51 per cent of graduates finding work within
six months.
However, the industry still faces
shortages of plumbers, electricians, masons and construction supervisors,
particularly as the government expands its housing and infrastructure
programmes.
The strongest employment prospects
are currently in the digital economy, where 68 per cent of graduates are
absorbed within six months.
KIPPRA identifies IT-enabled
services and software development among areas with job creation potential under
the government's Medium-Term Plan IV.
The data suggest that simply increasing
TVET enrolment may not be enough to solve Kenya’s unemployment problem. The
bigger challenge is ensuring that training matches actual demand from
employers.
Kenya has about 2,600 accredited
public and private TVET institutions, with roughly 350,000 students enrolled
annually. However, TVET accounts for only 15 per cent of post-secondary
enrolment, against a government target of 30 per cent.
The report says weak links between
training institutions and industry are contributing to the mismatch.
Only about 30 per cent of TVET
graduates complete meaningful industry attachments before graduation, limiting
their exposure to workplace requirements.
Curriculum development can also take
three to five years, making it difficult for institutions to respond quickly to
technological and industrial changes.
“Curriculum rigidity remains a
critical constraint, the development process typically takes three to five
years, a timeline that is “incompatible with rapid technological change,” the
report says.
The findings come as young Kenyans
express growing pessimism about the country’s economic future and job
prospects, amid persistent unemployment and slow job creation.
The 2026 African Youth Survey, which
covered 16 African countries, ranked Kenya last in confidence about the economy
and future employment opportunities among young people aged 18 to 24.
Kenya’s gig economy is also fast
becoming a critical source of income for young people as the labour market
shifts towards flexible and digital work.
Findings from the Ipsos Gig Economy
Market Assessment Report (March 2026) show that while Kenya’s labour force
continues to grow, reaching about 23 million people, job creation remains
largely informal.
In 2024, an estimated 782,300 jobs
were created, with nearly 90 per cent concentrated in the informal sector.
Within this environment, digital
platforms are absorbing thousands of job seekers, particularly young people who
face higher unemployment rates compared to the national average.
“Higher youth unemployment compared
to the national average is influencing how young Kenyans enter the labour
market. Many are turning to gig work because it offers a flexible and
accessible pathway into income generation,” the report stated.
KIPPRA is now calling for more
demand-driven training, stronger partnerships between TVET institutions and
employers, paid internships and expanded apprenticeship programmes.
The report argues that integrating
TVET institutions into local economic value chains offers a way to address
youth unemployment while building the skilled workforce needed for Kenya’s
economic transformation.
It says the country’s economic
competitiveness and the future of its youth depend on bridging the divide
between training and employment.
