The Kenyan business job market presents a perplexing paradox: a surplus of highly qualified individuals, including many with prestigious MBAs, struggling to find meaningful employment. This disconnect between academic credentials and employability highlights a systemic failure within the higher education system and a misalignment with the evolving demands of the modern workplace.
In Kenya, the issue of unemployment among MBA graduates is a pressing concern. For instance, Martin Mutitu, who graduated from Kenyatta University in 2016 with a Bachelor of Education (Arts) degree, pursued a Master's degree from the same institution in the hope of better employment prospects.
Despite his advanced qualifications, Mutitu resorted to menial jobs to survive and was even seen holding a placard on Nairobi’s Thika Road, appealing to potential employers for a job.
This situation underscores the challenges faced by highly educated individuals in securing employment, highlighting the need for systemic solutions to address graduate unemployment in the country.
Graduates of America’s top MBA programmes too are facing dwindling job prospects, sparking debates about the degree’s relevance. In 2024, only 84 percent of graduates from the top 15 business schools secured jobs within three months, an eight-percentage-point drop compared to the past five years.
Institutions like MIT’s Sloan School of Management saw sharper declines, with job acceptance at graduation falling from 82 percent (2012-2022 average) to 62 percent in 2024.
Two historically dominant industries—consulting and tech—are hiring fewer MBAs. Top consultancies such as McKinsey, Bain, and Boston Consulting Group reduced MBA hires by 25 percent in 2023.
The decline in tech is even more pronounced, with placements at major firms like Amazon and Meta falling by over 50 percent compared to pre-pandemic years. Post-pandemic adjustments and economic uncertainty have contributed to the downturn, as have changing industry priorities that increasingly favour technical over managerial expertise.
The MBA degree itself is under scrutiny. Critics argue that it prioritises theoretical concepts over practical skills, leaving graduates less prepared for modern challenges. Advanced degrees in fields like engineering and science are now viewed as more credible in some industries, including consulting.
Alternative career paths, such as "search funds" that allow recent MBAs to acquire and manage small businesses, are gaining traction. These ventures offer lower-risk opportunities for entrepreneurship and are attracting top students who might otherwise pursue traditional roles.
Business schools also face internal and cultural challenges. Their strong embrace of diversity, equity, and inclusion (DEI) initiatives since 2020 has aligned them with broader university trends but has drawn criticism from detractors. Moreover, these programmes have been slow to adapt to America’s reindustrialisation, continuing to focus on white-collar roles while ignoring shifts in the business landscape.
Historically, MBAs have symbolised career success, with nearly half of S&P 500 companies led by graduates from these programmes. However, declining demand from consulting and tech, coupled with increasing competition from technical degrees, is reshaping the MBA’s value proposition.
Although some graduates are turning to entrepreneurial ventures, business schools must innovate to remain relevant. Without significant changes, the prestige of an MBA from even the most elite schools could erode, challenging its position as a critical stepping stone for future business leaders.
A recent study by the Federation of Kenya Employers (FKE) painted a grim picture, revealing that over 64 percent of university graduates, including those with advanced degrees like MBAs, lack the practical skills actively sought by employers. This alarming statistic underscores a fundamental flaw in the current higher education system, where theoretical knowledge often overshadows essential real-world skills.
“The disconnect between my pre-MBA career and the current job market has presented significant challenges in my job search. While I'm actively addressing this by enhancing my skills and expanding my network, the prolonged unemployment has been disheartening. However, I remain determined to bridge this gap and secure a role that utilises my MBA and allows me to contribute meaningfully to the workforce,” says Emily Makena, an MBA graduate from a leading university in Kenya.
“I’ve been having a hard time landing a role for three years now. It feels impossible to land something at this point. What happens to MBAs in my situation? Should I just keep applying? Do I need to pursue something else?” laments Evans Owino a MBA graduate from the University of Nairobi.
The FKE report pinpoints outdated curricula as a primary culprit. While students may excel in academic theory, they often lack the crucial soft skills and hands-on experience demanded by today's dynamic workplaces. These essential skills, such as critical thinking, problem-solving, communication, teamwork, adaptability, and leadership, are often overlooked in favour of rote learning and theoretical examinations.
“Most employers have raised concerns about the trend,” observes Jacqueline Mugo, Executive Director of the FKE.
“They have to invest significant time and resources in retraining new employees, including MBA graduates, due to a lack of essential skills like time management, creativity, and overall performance.”
This sentiment echoes the findings of the Results for Development Institute (R4D), which found that many graduates are ill-equipped to compete effectively in the job market. Despite possessing advanced degrees, some individuals face prolonged periods of unemployment or are forced to accept jobs that underutilise their skills and stifle their career growth.
East Africa has witnessed a remarkable surge in MBA programmes, now boasting over 110 offerings at 100 schools—a dramatic increase from just 60 programmes a decade ago.
Back then, these institutions produced about 6,000 graduates annually, a figure that has now surpassed 10,000. This steep growth reflects the rising popularity and reputation of MBA programmes in the region further reflecting an overcrowded space.
Interestingly, this trend contrasts sharply with global patterns. Prestigious institutions like Harvard Business School saw MBA applications for their 2024 intake drop by over 15 percent, while the Wharton School of the University of Pennsylvania recorded a decline of more than 13 percent.
This divergence highlights East Africa’s unique enthusiasm for business education even as interest wanes in some of the world’s top business schools.
“The job market for MBA graduates in Kenya has shifted dramatically over the past decade,” says Dr Susan Naikuru, a lecturer at Jomo Kenyatta University of Agriculture and Technology.
“The economy has deteriorated compared to 10 years ago, with many organisations that once hired large numbers of MBA graduates now restructuring, relocating, or even shutting down. The Covid-19 pandemic further worsened the situation, leading to widespread job cuts of up to 20 to 30 percent, as companies moved operations online, embraced remote work, and eliminated redundant roles.”
She adds that the oversaturation of graduates, driven by the rise of new universities offering similar programmes, and the increasing reliance on AI to replace traditional roles, has compounded the problem.
“MBA graduates must now think ahead, adapt to the evolving job market, and develop skills that align with emerging demands,” she advises.
The broader unemployment crisis in Kenya further exacerbates these challenges. A study by the Kenya National Bureau of Statistics (KNBS) revealed that it takes an average of five years for a university graduate to secure employment. This prolonged job search forces many, especially those from less privileged backgrounds, to accept menial jobs to survive, further hindering their career progression and exacerbating income inequality.
Brian Mwau, the lead developer at Ajiry Kenya, one of the leading job apps in the region, emphasises the widespread nature of this skills mismatch in Kenya.
“The mismatch between academic training and industry demands extends beyond MBA programmes. A report found that approximately 7,000 of the over 10,000 annual degree graduates in Kenya lack the skills desired by employers. This alarming figure underscores the systemic issues within the higher education sector, which often fails to adequately prepare students for the realities of the workforce.”
“Addressing the challenges faced by Kenyan MBA graduates requires a multifaceted approach. Reforming the education system is paramount, with a focus on shifting the curriculum towards practical application, hands-on training, and real-world projects. Stronger collaborations between universities and industries are essential, fostering internships, guest lectures, mentorship programmes, and joint research projects to bridge the gap between theoretical knowledge and practical application,”says Michael Wambua, a MBA graduate turned forex expert after tarmacking for years with no job.
“The curriculum must explicitly integrate the development of essential soft skills, such as communication, critical thinking, problem-solving, teamwork, and leadership. Additionally, stricter quality control measures are needed to ensure that educational institutions maintain high standards and adhere to industry demands,” he adds.
In an attempt to address the high unemployment rates, President William Ruto has recently encouraged young Kenyans to seek employment opportunities abroad. This strategy aims to alleviate domestic unemployment and benefit from remittances sent back home.
