Kenya’s technical and vocational training system is producing thousands of graduates, but many are struggling to secure jobs in sectors where employers say skilled workers are in short supply.
This trend is exposing a widening mismatch between training and the labour market requirements.
A new analysis by the Kenya Institute for Public Policy Research and Analysis (KIPPRA) shows that employment prospects vary sharply across TVET careers, with graduates in digital-related courses having the highest chances of finding work while those trained for manufacturing and agriculture face significantly lower absorption rates.
The report says Kenya faces high youth unemployment despite shortages of skilled workers in key sectors, leaving many educated young people jobless while employers struggle to find people with the technical skills they need.
The report shows that 68 per cent of TVET graduates in the digital economy secure employment within six months of graduation, making technology-related careers the strongest employment pathway among the sectors analysed.
Hospitality and tourism follow with a 55 per cent employment rate, while construction records 51 per cent.
Agriculture graduates have an employment rate of 42 per cent, while manufacturing has the lowest at just 38 per cent.
The findings say employers continue to report shortages of skilled workers even as large numbers of technically trained young people remain unemployed.
“Nearly half of TVET graduates remain unemployed six months after graduation, despite employers reporting skills shortages in the same sectors,” the report says.
KIPPRA estimates that skills gaps cost the Kenyan economy about Sh50 billion annually through lost productivity, additional employer training costs and missed value-addition opportunities.
The problem is particularly acute in manufacturing, where employers report a very high demand for machinists, welders, quality-control technicians and industrial electricians.
Yet only 38 per cent of manufacturing-related TVET graduates find employment within six months.
The sector contributes about 7.8 per cent of Kenya’s GDP, against a government target of 15 per cent, with skills shortages identified as one of the constraints holding back industrial expansion.
These shortages of skilled workers “compel companies to import expertise, operate below capacity, or compromise on quality,” ultimately hindering Kenya’s industrialisation and infrastructure development goals.
Findings show that agriculture presents a similar contradiction. The sector contributes about 22 per cent of GDP and employs roughly 40 per cent of the workforce, but only 42 per cent of agriculture-related TVET graduates secure employment within six months.
KIPPRA says the sector faces shortages in skills such as precision agriculture, mechanisation, irrigation management and agro-processing.
The skills gap also has direct implications for agricultural productivity. The report notes that post-harvest losses in horticultural value chains remain between 30 and 40 per cent, partly because of inadequate technical skills in modern farming and value addition.
It says training young people in precision agriculture, mechanisation and value addition “could significantly enhance productivity while creating thousands of jobs across agricultural value chains.”
Construction offers a slightly better employment outlook, with 51 per cent of graduates finding work within six months.
However, the industry still faces shortages of plumbers, electricians, masons and construction supervisors, particularly as the government expands its housing and infrastructure programmes.
The strongest employment prospects are currently in the digital economy, where 68 per cent of graduates are absorbed within six months.
KIPPRA identifies IT-enabled services and software development among areas with job creation potential under the government’s Medium-Term Plan IV.
The data suggest that simply increasing TVET enrolment may not be enough to solve Kenya’s unemployment problem. The bigger challenge is ensuring that training matches actual demand from employers.
Kenya has about 2,600 accredited public and private TVET institutions, with roughly 350,000 students enrolled annually. However, TVET accounts for only 15 per cent of post-secondary enrolment, against a government target of 30 per cent.
The report says weak links between training institutions and industry are contributing to the mismatch.
Only about 30 per cent of TVET graduates complete meaningful industry attachments before graduation, limiting their exposure to workplace requirements.
Curriculum development can also take three to five years, making it difficult for institutions to respond quickly to technological and industrial changes.
“Curriculum rigidity remains a critical constraint, the development process typically takes three to five years, a timeline that is “incompatible with rapid technological change,” the report says.
The findings come as young Kenyans express growing pessimism about the country’s economic future and job prospects, amid persistent unemployment and slow job creation.
The 2026 African Youth Survey, which covered 16 African countries, ranked Kenya last in confidence about the economy and future employment opportunities among young people aged 18 to 24.
Kenya’s gig economy is also fast becoming a critical source of income for young people as the labour market shifts towards flexible and digital work.
Findings from the Ipsos Gig Economy Market Assessment Report (March 2026) show that while Kenya’s labour force continues to grow, reaching about 23 million people, job creation remains largely informal.
In 2024, an estimated 782,300 jobs were created, with nearly 90 per cent concentrated in the informal sector.
Within this environment, digital platforms are absorbing thousands of job seekers, particularly young people who face higher unemployment rates compared to the national average.
“Higher youth unemployment compared to the national average is influencing how young Kenyans enter the labour market. Many are turning to gig work because it offers a flexible and accessible pathway into income generation,” the report stated.
KIPPRA is now calling for more demand-driven training, stronger partnerships between TVET institutions and employers, paid internships and expanded apprenticeship programmes.
The report argues that integrating TVET institutions into local economic value chains offers a way to address youth unemployment while building the skilled workforce needed for Kenya’s economic transformation.
It says the country’s economic competitiveness and the future of its youth depend on bridging the divide between training and employment.
