Kenya is a youthful country and indeed youth unemployment is the key labour market policy challenge. With the youth, comprising nearly 30% of the total population and about half of the total working-age population, they are the largest unemployed demographic. In fact, the unemployment rate for the youth
aged between 15-19 and 20-24 years is five times that of the national unemployment rate of 7.4% by 2015/16. This is exacerbated by more than 800,000 of them entering the job market annually. There are variations in youth unemployment, for instance by gender, with the education level a key determinant. Breakdown of the employment picture further lays bare the labour market challenge, with over 80% of all jobs created in the informal sector, where 41% of the youth are absorbed, thus vulnerable.