By Charles Kyalo

Kenya continues to face significant unemployment challenges, with the unemployment rate estimated at 12.7 percent in 2024. Kenyan youth feel the greatest impact of this unemployment, with youth unemployment soaring to 67 percent. The unemployment crisis in Kenya calls for urgent action, particularly for youth between 15 and 24, whose unemployment rate is 13.4 percent. 

In 2025, projections show a modest rise in general unemployment to 7.23 percent, translating to nearly 1.95 million unemployed people. The social and economic impacts of unemployment in Kenya include poverty, crime, and religious extremism, such as the Shakahola tragedy. To address unemployment, the government should redefine and fully implement the competency-based curriculum (CBC), aligning the CBC with industry needs, fostering entrepreneurship through tax incentives and deregulation, and encouraging public-private partnerships in the manufacturing industry.     

Initiatives that address skills development, job creation, and economic diversification are critical. Unemployment in Kenya and across Africa remains an economic burden on young people and families facing high costs of living. Systemic hurdles, rapid population increases, and inadequate job generation mechanisms are contributing to youth unemployment.

The CBC focuses on developing learners' skills, knowledge, and attitude rather than just academic performance. The CBC emphasizes practical learning, creativity, and problem-solving to prepare students for real-world applications. The government should equip schools with adequate modern infrastructure, and recruit teachers to cover the existing student-to-teacher gap. 

At the tertiary level, the Ministry of Education should work on creating sustainable industry linkages for internships and mentorship programs. These programs offer hands-on experience and contribute to developing curricula aligned with both employers' needs and practical skills for successful self-employment.

Additionally, the government can foster entrepreneurship through tax incentives and deregulation by simplifying business registration, lowering taxes, and establishing accessible funding schemes for young entrepreneurs and startups. Jua Kali, for example, can be boosted by simplifying licensing processes and access to affordable microfinance. 

Financial institutions need to develop startup-specific lending products. Young graduates from vocational centres and tertiary institutions can achieve self-employment by leveraging entrepreneurship incubator programs. Programs targeting university and technical institution students offer business development training and provide minimal viable tools to set up shop. 

Furthermore, regulatory bodies like the Central Bank of Kenya, Business Registration Service of Kenya, and Kenya Revenue Authority (KRA) should remove bureaucratic processes and actions limiting small business. As of 2024, KRA has accrued up to 16 billion Kenyan Shillings in unpaid tax refunds. This action undermines Kenya's business-friendly environment, turning away potential investors and costing the country jobs.

The government can apply public-private partnerships (PPPs) in the manufacturing industry. PPPs have great potential to create jobs, support vocational training, and boost local production through export processing zones and industrial parks. The Kenyan government can accelerate growth in infrastructure, industrial development, energy, and healthcare. Leveraging the private sector's expertise, efficiency, and financial resources is key to achieving this growth.

To maximize PPPs, the Kenyan government should ensure transparency, clear accountability frameworks, and promote public involvement in decision-making. Strengthening governance around PPPs can restore public trust and make them a key driver of job creation and economic growth. 

By fully adopting a tailored CBC, Kenya can equip youth for opportunities in manufacturing, production, and self-employment. Policy reviews and investing in people through PPPs will create jobs and promote inclusive economic growth. Charles Kyalo is a writing fellow at African Liberty.