Youth jobs in Kenya: why nine in ten new jobs are informal, and what young people can do
Kenya created about 822,100 jobs in 2025, but more than 87% were in the informal sector, and only 8.6% of employed young Kenyans have formal jobs. Here is what the numbers say and where the opportunities are.
For many Gen Z and millennial Kenyans, the hardest question is simple: where are the jobs? The data shows jobs are being created, but most of them are not the formal, salaried kind.
The numbers
| Measure | Figure |
|---|---|
| New jobs created in 2025 | 822,100 |
| Share in the informal sector | More than 87% |
| Total employment (excluding small-scale farming) | 21.6 million in 2025, up from 20.8 million |
| New jobs in 2024 | 782,300: 703,700 informal and 78,600 formal |
| Employed young Kenyans with formal jobs | 8.6% |
| Employed youth living in extreme poverty | 35% |
The 2025 figures are from the KNBS 2026 Economic Survey, as announced by Government Spokesman Isaac Mwaura. The youth figures are from the Africa Youth Employment Outlook 2026.
How Kenya compares
In East Africa, the share of employed youth in formal jobs is 16.8% in Rwanda, 8.6% in Kenya, 5.4% in Tanzania and 4.6% in Uganda. Across Africa, nearly 90% of employed young people work informally, mostly in farming.
What "informal" means
Informal jobs include small shops, boda boda riding, mama mboga stalls, casual construction work, freelancing and many online gigs. They often have no contract, pension or health cover, and earnings can be irregular. They are also where most Kenyans now earn a living.
What young people can do
- Stack skills: short courses in digital, technical and trade skills (TVET) can be faster routes to income than another degree.
- Formalise your hustle: a KRA PIN, business registration and records make it easier to get credit, contracts and platform payouts (see the creator tax).
- Protect yourself: register with SHA for health cover (see SHA explained) and save, even small amounts (see money market funds).
- Watch public jobs: teaching and other public recruitment drives attract huge numbers (see TSC jobs).
- Beware of fake jobs abroad: check agencies with the National Employment Authority (see Kenyans recruited into Russia's army).
