Kenya Government Commits Sh33 Billion to Boost Youth Employment
The Kenyan government has unveiled an ambitious plan to invest Sh33 billion in job creation initiatives targeting the country’s youth, aiming to address the pressing issue of unemployment among young people. This funding, outlined in the 2025/2026 Financial Year budget, will support a range of programs designed to empower young Kenyans through employment opportunities, skill development, and entrepreneurial support. According to Labour and Social Protection Cabinet Secretary Alfred Mutua, the initiative reflects the government’s commitment to tackling youth unemployment, a critical challenge in a country where over 60% of the population is under 35. The announcement was made during a recent address, where Mutua emphasized the transformative potential of these investments for Kenya’s economic future.
A significant portion of the budget, Sh22 billion, is allocated to the Kenya Kwanza Affordable Housing Programme, which is expected to create numerous jobs for young people in the construction sector. This initiative not only aims to provide employment but also addresses the housing shortage by building affordable homes across the country. Additionally, Sh6 billion will fund the construction of 20 modern youth empowerment centers, equipped with facilities to offer vocational training, mentorship, and access to digital tools. These centers are intended to equip young Kenyans with market-relevant skills, enabling them to compete in both local and global job markets. Another Sh5 billion is earmarked for the Youth Enterprise Fund, which will provide low-interest loans and grants to young entrepreneurs to start or expand businesses, fostering a culture of innovation and self-reliance.
To ensure effective implementation, the government plans to collaborate with county governments, private sector partners, and international organizations. Mutua highlighted that the programs will prioritize inclusivity, targeting marginalized groups such as young women, persons with disabilities, and youth in rural areas. The initiative also includes measures to connect young people with international job opportunities through labor export programs, particularly in countries with high demand for skilled workers. The government projects that these efforts will create over 500,000 direct and indirect jobs within the next financial year, significantly reducing the unemployment rate among Kenya’s youth.
The announcement has been met with optimism from various stakeholders, who see it as a step toward addressing the economic challenges facing young Kenyans. However, some analysts have called for transparency and accountability in the allocation and use of the funds to ensure they reach the intended beneficiaries. Youth groups have also urged the government to involve them in the planning and execution of these programs to align the initiatives with their needs and aspirations. As the 2025/2026 Financial Year approaches, all eyes will be on the government to deliver on its promise to transform the lives of Kenya’s youth through sustainable job creation and economic empowerment.