Number of the Week: 17.1%: Youth Unemployment in Kenya

Number of the Week: 17.1%: Youth Unemployment in Kenya

Post date: Wed, Mar 30, 2016 |

Category: Economic Development |

This week we look at youth unemployment in Kenya. Among the concerns that arose during the public symposium that was held at the Kenya National Theatre in Nairobi on Tuesday, 29th March 2016 was the high unemployment rate among the youths in Kenya. The Deputy President William Ruto used the opportunity to highlight Jubilee development record in the past three years saying that the government was keen on creating jobs for young people. The deputy president said that the government has made deliberate move to ensure that the Kenyan economy create jobs for the bulging youth through the implementation of programmes such as the Kenya Industrial Transformation Programme. He further said that the government has approached private companies to offer internships to youths especially university and college graduates.

According to World Bank, unemployment rate refers to the share of the labor force that is without work but available for and seeking employment1. In this week’s analysis we provide facts on the status of unemployment level in Kenya by looking at the trends in the share of youths aged 15 -24 years who are unemployed and in addition, provide a regional comparison with the EAC peers.

Chart 1: Youth Unemployment rates in Kenya, youth total (% of total labor force ages 15- 24)

Source: World Bank Indicators

The chart above illustrates the trends in unemployment rates for the youths aged 15 – 24 years according to the model of the International Labour Organisation (ILO). The chart reveals that the unemployment rates for both male and female youths are high. While the unemployment trend for male has been fairly constant at 16.8%, that for female youths has been slightly rising, it comprised 17.1% in 2010 but increased to 17.3% in 2013. Furthermore, as depicted in the chart, unemployment rates among the girls is higher than boys and the gap has marginally increased from 0.3 percentage points (17.1% – 16.8%) in 2010 to 0.5% percentage points (17.3% – 16.8%) in 2013.

Chart 2: Unemployment rates in EAC countries, youth total (% of total labor force ages 15-24), 2013

Source: World Bank Indicators

Among the East African Countries, the 2013 data shows that unemployment rates among the youths of ages 15 – 24 years is highest in Kenya at 17.1%, followed by Burundi at 10.4%, Uganda at 6.6% and Tanzania at 6.5%. Rwanda emerges as the country with the lowest level of unemployment at 0.7%.

Number of the Week: 17.1%

The level of unemployment for youths in Kenya in 2013 is 17.1%.
This implies that for every 100 youths in Kenya, 17 are without work but available for and seeking employment in Kenya.
Whereas in Burundi they are approximately 11
Tanzania and Uganda, 7
In Rwanda, 1
This further reveals that there are 16 more youths in Kenya than there are in Rwanda, without work but available for and seeking employment.

More Number of the Week

Kenya’s comparison of Out of pocket expenditure on Health with its peers

In the advent of increased Non-Communicable Diseases such as cancer that require long time treatment, reduction of the Out-of-pocket payments is key in sustaining affordability and access to health care services. These can be achieved through increased insurance both by the government and the private sector.

Outstanding Stock of Treasury Bonds by Holders

Treasury bonds are a secure, medium- to long-term investment tools that typically offer periodic interest payments semiannually throughout the bond’s life. The Central Bank auctions Treasury bonds on a monthly basis, but offers a variety of bonds throughout the year, so prospective investors should regularly check for upcoming auctions. Outstanding Treasury Bonds increased by 11.2 per cent to Ksh 1,152,041 million in June 2016 from Ksh 1,035,662 million in June 2015.

Outstanding Stock of Treasury Bills by Holders

In June 2016 compared to June 2015, the stock of Treasury bills increased by 84.4 per cent to Ksh 588,088 million from Ksh 318,929 million while the proportion held by commercial banks increased by 67.4 per cent to Ksh 361,859 million from Ksh 217,742 million. In the same period, holdings by pension fund institutions increased to 20.1 per cent from 12.8 per cent while proportion held by insurance companies decreased to 3.1 per cent from 6.5 per cent.

Outstanding Stock of Treasury Bills and Bonds by Holders

The medium term debt strategy for the financial year 2016/17 emphasized on the need to develop the domestic market by increasing the issuance of Treasury bonds over the medium term. The strategy targeted a mix of 60 percent and 40 per cent for external and domestic financing, respectively.

Trends in Kenya’s Total Domestic Public Debt Stock from 1999 – 2018 (In nominal terms)

Trends in Kenya’s Total Domestic Public Debt Stock from 1999 – 2018 (In nominal terms) Source: Central Bank of Kenya The number of the Week: 2.1, this is the factor by which domestic debt has grown in the last five years. Domestic debt has nearly doubled in the last five years (2013-2018) Between 1999 and […]