The World Bank has forecast a rise in unemployment for Kenya in 2024, citing a challenging labor market outlook due to sluggish economic growth, high inflation, and policy uncertainty. The report underscores that global economic pressures are also contributing to this bleak forecast for the country’s workforce.
The bank attributes the rising unemployment to several factors, including disruptions in Kenya’s education system. Over 500,000 non-teaching staff in secondary schools, such as lab technicians, cleaners, cooks, and secretaries, have lost their jobs. This is a direct consequence of the shift to the Competency-Based Curriculum (CBC) and the introduction of Junior Secondary Schools (JSS), which have restructured staffing needs in schools. Albert Njeru, the Secretary General of the Kenya Union of Domestic Hotels, Educational Institutions, Hospitals, and Allied Workers (KUDHEIHA), confirmed that these workers were given layoff notices in December 2024, with the cuts taking effect on January 1, 2025.
Despite these challenges, Kenya’s formal and informal sectors managed to create 848,200 jobs in 2023, according to the Economic Survey 2024. This increase brought the total number of jobs in the country to 20 million, with wage employment in the modern sector growing by 4.1%, contributing 122,800 new jobs. However, the World Bank warns that rising policy and structural challenges may reverse this progress, particularly with difficulties in maintaining economic stability.
A survey by the Central Bank of Kenya (CBK) reveals that many employers are hesitant to hire, citing rising business costs, high taxes, and global economic factors as significant barriers to job creation. Many businesses are focusing on cost mitigation strategies and marketing efforts, with high taxes and reduced consumer demand continuing to stifle growth.
