Young Kenyans should stop waiting for white-collar jobs and instead embrace entrepreneurship by building small enterprises that can grow into major businesses, Principal Secretary for Labour and Skills Development Shadrack Mwadime has said.
Speaking during the second day of the SkillUp Africa 2026 forum at the Kenyatta International Convention Centre (KICC) on Thursday, Mr Mwadime said Kenya's economic future will largely depend on empowering young entrepreneurs and strengthening the informal sector.
His remarks come against the backdrop of rising youth unemployment, with the country producing about one million graduates annually while only a fraction secure formal employment.
According to the PS, about 300,000 graduates are absorbed into formal jobs each year, with government employing about 200,000 and the private sector taking in another 100,000.
"The question then becomes, where do the remaining hundreds of thousands go?" Mr Mwadime asked.
Rather than viewing the figures as discouraging, he urged young people to see them as an opportunity to rethink their approach to employment.
"The informal sector is what is going to open up the Kenyan economy and the African economy," he said.
Drawing lessons from Germany, one of Europe's largest economy, Mr Mwadime noted that many globally recognised companies started as family-owned enterprises before growing into multinational corporations.
"If we create a conducive environment for young people to establish small enterprises and help them grow, then the future is bright for Kenya," he said.
He said Kenya's youthful population, estimated at about 75 per cent of the country's population, should be viewed as a demographic advantage rather than a burden.
His remarks coincided with the launch of the National Strategy on the Transformation of the Informal Economy, which seeks to progressively formalise the sector through improved access to markets, financing, technology, skills development and social protection.
The strategy targets a sector that accounts for more than 80 per cent of Kenya's workforce and is expected to improve productivity while creating pathways for sustainable enterprise growth.
The ministry also unveiled the Skills Gap Report, which identifies sectors with high global demand for labour, including healthcare, construction, transport, hospitality, home care, cleaning and security services.
State Department for Labour and Skills Development, Secretary for Skills Development Dr Wanjiru Kariuki (left), Principal Secretary in the State Labour and Skills Development Shadrack Mwadime (2nd right) and Kenya National Federation of Jua Kali Association CEO Arch. Nyamai Wambua (right) present certificates to Turkana Tech Youth Hub National TVET Ambassador Loroo Esekon and Pej Automation Engineers Ltd TVET mentor Patriciah Musangi during the last day of the Skill Up Africa event held at KICC on July 16, 2026.
Photo credit: Lucy Wanjiru | Nation
Also launched was the National Work-Based Learning Award, which seeks to recognise employers that provide internships, apprenticeships and industrial attachment opportunities for young people.
Kenya National Federation of Jua Kali Associations Chief Executive Officer Arch. Nyamai Wambua welcomed the strategy, saying it signals a departure from previous attempts to formalise the informal sector.
He said initiatives such as recognition of prior learning, digitalisation and stronger partnerships between the Jua Kali sector and formal businesses would unlock opportunities for artisans and young entrepreneurs.
Among the planned initiatives is a partnership between the Kenya National Federation of Jua Kali Associations and the Kenya National Chamber of Commerce and Industry to connect Jua Kali manufacturers with corporate supply chains.
For Caroline Njoki, a young entrepreneur who attended the forum, the discussions underscored the importance of building businesses around practical skills instead of waiting for scarce formal jobs.
"I've realised that opportunities are already around us. What many young people need is the confidence to turn their skills into businesses. With the right support, training and access to markets, small enterprises can grow into companies that create jobs for others," she said.
Nation Media Group Chief Commercial Officer James Sogoti said the annual SkillUp Africa forum seeks to equip young people with practical knowledge, networks and opportunities that prepare them for the changing world of work.
As the forum concluded, Mr Mwadime challenged young Kenyans to become job creators rather than job seekers.
"Our task is clear. We must transform this youth bulge into a demographic dividend by ensuring young people are productively employed. This is not a journey for government alone. It is a collective mission," he said.
