NAIROBI, Kenya, Sept 12 – A new economic report from the Kenya Institute for Public Policy Research and Analysis (KIPPRA) has revealed that youth unemployment remains a big headache in Kenya’s arid and semi-arid regions.
The report highlights sluggish labour absorption rates in both the public and private sectors in these areas, with KIPPRA’s Executive Director, Rose Ngugi, pointing to lower productivity as a contributing factor.
“On average, the semi-arid counties have lower productivity compared to others,” Ngugi noted. “The unemployment rates in these counties are very high, pointing to a lower exploitation of resources.”
To address the challenge, Ngugi suggested that counties in arid and semi-arid lands (ASAL) can leverage value chains such as leather production, given the high livestock population, to create jobs for young people.
On the flip side, KIPPRA asserts that the country’s economic outlook remains optimistic.
The institute has projected that Kenya’s GDP will grow by over 6 percent in 2024, driven largely by private sector investments.
Additionally, inflation rates are expected to continue decreasing, helped by improved food supply from the agricultural sector.
KIPPRA also anticipates a reduction in public debt to 68 percent, supported by fiscal consolidation efforts.
Ngugi acknowledged positive projections from the International Monetary Fund (IMF), stating that Kenya’s growth could outperform the sub-Saharan average, with the country’s GDP growth forecasted at 5 percent.
However, she cautioned that external shocks, such as drought, could potentially slow the country’s economic recovery, which is still ongoing after the severe impacts of the COVID-19 pandemic.
