That two-thirds of jobless Kenyans have given up looking for work or starting businesses should set alarm bells ringing.
The Kenya National Bureau of Statistics (KNBS) data covering the quarter that ended December show that 2.01 million out of the total of 2.97 million jobless Kenyans — who qualify for the labour force — were not actively looking for employment.
Most of these are graduates and retrenched workers disheartened by fewer opportunities in a tough economy that has seen many firms freeze hiring to survive.
Policymakers should take notice because the long-term implications of a lack of ambition and motivation for financial growth are dire.
More and more Kenyans will sink deeper into poverty, increasing social inequality. Crime and violence levels will skyrocket, and cases of depression, severe mental illness, and suicide may rise.
The quality of the labour market will deteriorate as many individuals who give up on pursuing their careers or entrepreneurial ambitions may have unique skills, experiences, and perspectives that could benefit the workforce and economy.
Kenya’s years of strong economic growth have created jobs, but they are mostly low-paying and informal and come at a rate that economists say is too low to absorb the rapidly growing youth population.
These should concern both government and the private sector. There is a need to improve the investment climate to attract more foreign firms, support programmes targeting small business growth and address other systemic barriers to job access.
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