January 17, 2025

Summary

Most employed youth earn less than Ksh30,000 per month, a figure insufficient to cover basic living expenses.

More by Winnie Kabintie

Employed but broke – Kenyan youth rely on side hustles amid low earnings

Employed but broke – Kenyan youth rely on side hustles amid low earnings

Ajira Digital: Image Courtesy

A growing number of Kenyan youth are turning to side hustles to make ends meet, driven by low salaries and the country’s persistent unemployment crisis, a new survey by GeoPoll reveals.

The survey, conducted across Kenya’s 47 counties, highlights that most employed youth earn less than Ksh30,000 per month, a figure insufficient to cover basic living expenses. Approximately 20% of respondents reported earning between Ksh30,000 and Ksh50,000, while 17% earned between Ksh50,000 and Ksh80,000. Only 6% indicated monthly earnings above Ksh150,000.

These modest incomes have prompted many young people to embrace small-scale entrepreneurial ventures to supplement their wages. GeoPoll notes a strong entrepreneurial drive among Kenyan youth, with 87% expressing interest in starting their own businesses as a pathway to economic independence.

Youth Unemployment Crisis

Data from the National Council for Population and Development underscores Kenya’s youth unemployment severity. While young people aged 18-34 account for 35% of the population, they bear the brunt of unemployment at a staggering rate of 67%.

Over a million young Kenyans enter the labor market each year, further straining the already limited pool of formal job opportunities.

Barriers to Employment

The GeoPoll survey sheds light on the hurdles young Kenyans face in securing employment. An overwhelming 80% cited the lack of job opportunities as the primary challenge, while 42% highlighted nepotism and cronyism as significant barriers.

Other obstacles include inadequate networking opportunities (39%), limited government and institutional support (34%), and a lack of work experience (32%). A smaller percentage of respondents pointed to mismatched skills (17%) and insufficient career guidance (17%) as contributing factors. Mental health struggles also surfaced, with 6% noting the emotional toll of prolonged unemployment.

Resilience Through Side Hustles

Despite these challenges, 71% of respondents reported engaging in side hustles to bolster their income. From retail and trade to agriculture and technology, young Kenyans are leveraging their creativity and skills to navigate the volatile economic landscape.

The survey, conducted via GeoPoll’s mobile application in November 2024, sampled 749 youth aged 25-35, with 63% male and 37% female respondents. Notably, 70% held college degrees, highlighting the disconnect between education and employment opportunities in Kenya.

While 56% expressed a preference for running businesses full-time, 39% showed interest in part-time entrepreneurship, reflecting a blend of traditional and modern approaches to livelihood. Retail and trade emerged as the most sought-after sectors, followed by agriculture and technology.

Challenges for Young Entrepreneurs

For aspiring young entrepreneurs, the lack of access to capital remains the greatest challenge, with 72% of respondents identifying it as a significant barrier. Market competition, limited mentorship, and insufficient business knowledge were also cited as obstacles to launching and sustaining enterprises.

Financial support, particularly in the form of grants and loans, was highlighted as the most crucial need by 82% of respondents. Mentorship and guidance were also highly valued, with 51% identifying them as essential to their entrepreneurial journey.

The survey emphasizes the importance of skill training programs, supportive government policies, and incentives to foster a more inclusive and enabling environment for youth-led businesses.

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