This archive report was first published on 1 July 2021.
Published on July 1, 2021, a World Bank report paints a gloomy picture of Kenya's economy, with scarce jobs forcing more Kenyans to try their luck in self-employment.
According to the report, about six out of ten people had gone into self-employment as of 2019, a significant jump from about four people who were self-employed in 2016.
The proportion of people in wage employment has also reduced to 35 per cent in 2019 from 45 per cent in 2016, highlighting the struggles of the economy to create jobs.
"Overall self-employment (both in and outside of the agriculture sector) increased from 39 per cent in 2005 to 43 per cent in 2015/16, and then 58 per cent by 2019," the World Bank noted in the Kenya Economic Update.
The share of self-employment has increased more among lower levels of education, suggesting a bifurcation of the labour market – with greater reliance on self-employment among the less educated.
Other than wage employment, unpaid family work has also declined, from 28 per cent of all employment in 2006 to eight per cent in 2016 and three per cent in 2019.
The World Bank noted that the economy has diversified from agriculture, which has traditionally relied on unpaid family labour, with other economic sectors contributing to economic growth.
Agriculture, the largest employer, currently accounts for 47 per cent of people in employment compared to 59 per cent in 2006.
The World Bank emphasized the need to put in place mechanisms to ensure the survival of new enterprises, including behavioural interventions that encourage entrepreneurialism, build networks, improve management skills, and support linking to markets.
