Degrees no longer guarantee jobs for Kenya's youth

Kenyan graduates increasingly turning to informal jobs as stable employment declines. [iStockphoto]

Kenya created 822,100 new jobs in 2025, according to the Kenya National Bureau of Statistics (KNBS), but nearly nine out of 10 of those opportunities were in the informal sector, underscoring the growing challenge graduates face in securing stable employment.

The data paints a picture of an economy struggling to absorb the rising number of university graduates, with experts warning that academic qualifications alone no longer guarantee economic security.

Kenya’s share of formal employment has declined from 18.5 per cent in 2010 to 15.5 per cent in 2024, reflecting what analysts describe as a structural shift in the labour market. While more young people are earning degrees, fewer are finding opportunities in stable, salaried jobs.

For many families, the reality has become emotionally and financially painful. Parents continue investing heavily in higher education with the belief that university remains the surest path out of poverty.

Yet many graduates are spending years searching for work, relying on short-term contracts, online gigs and informal hustles to survive.

The World Bank’s 2025 Africa’s Pulse report estimates that Sub-Saharan Africa must create 25 million jobs annually over the next quarter-century to keep pace with its rapidly growing labour force.

Performance strategist Dr Abiola Salami says the transition from school to work has become one of the biggest failure points in youth development.

“Talent does not disappear. It deteriorates when it is not exercised, refined or rewarded,” says Salami, arguing that many students leave school trained to excel in structured environments, only to enter a labour market that demands creativity, adaptability and practical problem-solving skills.

The pressure has pushed thousands of graduates to the capital city in search of opportunities, despite rising living costs and shrinking formal employment. For many, the city still represents hope, even as competition intensifies.

Analysts say the growing disconnect between education and employment is forcing a rethink of how universities prepare students for the modern economy. Increasingly, employers are prioritising digital skills, communication ability, innovation and proof of practical experience over certificates alone.

Experts are now calling for stronger links between universities and industry through apprenticeships, mentorship programmes, entrepreneurship training and digital work opportunities.

While education remains critical, analysts warn that the old promise of “study hard and get a job” is fading in an economy shaped by technology, informal work and changing employer demands.