By Benadeta Mwaura - Reporter
Kenya, 3 August 2026 - Small and medium-sized enterprises (SMEs) have been urged to place workforce development at the centre of their growth strategies as concerns mount over rising youth unemployment and widening skills gaps across Kenya's labour market.
The call was made during a youth employment forum that brought together entrepreneurs, policymakers and labour market specialists, who argued that businesses must move beyond simply creating jobs and instead focus on equipping workers with practical skills needed in an increasingly competitive economy.
Speaking during the event, Adroid Facilities Limited founder Atlanta Wamahia said businesses that invest in their employees ultimately strengthen both their organisations and the wider economy.
The discussion comes at a time when Kenya continues to grapple with persistently high unemployment rates, particularly among young people entering the labour market each year. According to various labour market studies, thousands of graduates continue to struggle to find work despite holding academic qualifications because employers increasingly prioritise practical experience, digital competence and specialised technical skills.
The debate has once again highlighted one of Kenya's most persistent economic challenges: the disconnect between what students learn in school and the skills employers require in the workplace.
Employers have repeatedly pointed to deficiencies in communication, problem-solving, teamwork, adaptability and digital literacy, arguing that these competencies are becoming just as important as academic qualifications.
The rapid growth of artificial intelligence has intensified these concerns as businesses increasingly seek workers who can adapt quickly to technological changes. Experts warn that automation is transforming the labour market and eliminating some traditional entry-level roles while simultaneously creating entirely new opportunities.
Although multinational corporations often receive more attention, small businesses remain the backbone of Kenya's economy.
SMEs account for a significant share of employment opportunities across the country and are widely viewed as one of the most effective channels through which young people can enter the labour market.
Because of their flexibility, SMEs are often better positioned to provide apprenticeships, internships and work-based learning opportunities that allow young people to acquire practical experience.
More from Kenya
Experts argue that businesses should invest more heavily in mentorship programmes, vocational training, digital skills development and entrepreneurship programmes to improve employability.
Several countries have already begun introducing policies aimed at addressing youth unemployment through stronger partnerships between governments, educational institutions and private companies.
Britain recently announced a programme expected to create approximately 200,000 employment and apprenticeship opportunities for young people through grants and expanded vocational training initiatives.
Meanwhile, international organisations, including the World Bank, have launched programmes designed to equip millions of young Africans with skills in agribusiness, healthcare, manufacturing, technology and renewable energy.
Analysts say Kenya could draw valuable lessons from these initiatives as it attempts to harness its rapidly growing youthful population.
Participants at the forum also stressed that workforce development should not be viewed purely as an employment strategy but rather as a long-term investment in national development.
They argued that businesses that train employees often benefit from increased productivity, lower staff turnover and improved competitiveness. Workers, on the other hand, gain opportunities to earn higher incomes and adapt more effectively to changes in the labour market.
As Kenya continues to embrace digital transformation, artificial intelligence and green technologies, experts believe the ability of businesses to nurture talent may ultimately determine whether the country succeeds in turning its youthful population into an economic advantage rather than a social burden.