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Each year, Kenyan universities and colleges release hundreds of thousands of graduates into the national workforce, each armed with academic qualifications and career aspirations.
But when graduates leave campus, they face the tough reality of the Kenyan job market: high competition, a lack of the right skills and a changing economy.
The core of the issue lies in the disparity between the number of graduates and the formal jobs created.
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According to the Economic Survey 2025 released by the Kenya National Bureau of Statistics (KNBS), the economy created 782,300 new jobs in 2024.
However, a staggering 90% of these, or 703,700 jobs, were in the informal sector.
This left only 78,600 new jobs in the formal sector available for all job seekers, a figure that is insufficient to absorb the annual influx of new graduates, let alone existing unemployed individuals.
This reality forces many into underemployment, where their skills are underutilised or in roles unrelated to their field of study.
Skills mismatch to blame
A primary factor driving this challenge is the widely reported skills mismatch.
Employers' organisations, including the Federation of Kenya Employers (FKE), consistently highlight a gap between the theoretical knowledge imparted by universities and the practical, technical and soft skills required in the modern workplace.
Industry leaders frequently seek graduates proficient in critical thinking, digital literacy, communication, and problem-solving, yet often find candidates lacking in these areas.
This disconnect means that even with a degree, many graduates are not considered work-ready without substantial additional training.
Changing nature of employment
In response to this environment, the nature of employment itself is evolving.
The informal sector and the gig economy have become the largest absorbers of labour in Kenya.
For many graduates, initial career opportunities are not in traditional, permanent roles but in short-term contracts, freelance digital work, or entrepreneurship.
This reality necessitates a different skill set, one centred on adaptability, self-management, and financial literacy.
Recognising the need for more practical skills, there is also a renewed national emphasis on Technical and Vocational Education and Training (TVET) as a vital pathway to equip young people with specialised, in-demand technical abilities that align directly with industry needs.
The journey from graduation to gainful employment in Kenya is a complex reality check.
A university degree remains an important asset, but it is no longer a guarantee of a direct path to a formal career.
For today’s graduates, navigating the job market successfully demands a proactive approach: supplementing academic credentials with relevant market skills, embracing the flexibility of the gig economy, and understanding that continuous learning is essential for career growth.
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