Nairobi, Monday 12^th August 2024. The private sector through the Kenya Private Sector Alliance (KEPSA) today hosted a webinar bringing together young people, digital innovators, the private sector, representatives from the public sector, development partners and other industry players, to discuss digital skills, innovation and work opportunities, in celebration of the International Youth Day 2024.

The International Youth Day has its theme this year: From Clicks to Progress: Youth Digital Pathways for Sustainable Development. This formed quite a timely topic of discussion at the webinar delving on how Kenya, just like the region and the world, is seeks solutions and opportunities within digitalization in accelerating the progress of the Sustainable Development Goals (SDGs) and highlight the significant contributions of the young people in this transformation. The webinar brought out insights on how different interventions such as digital skilling, Artificial Intelligence (AI) and other emerging technologies, the future of work, green economy and the twin transition to digitalization, as well as the transformation between education and market opportunities with a focus on the Technical, Vocational, Education and Training (TVETs), contributes to creating meaningful work opportunities while providing solutions to businesses and the society.

Digital technologies and especially the emerging technologies have been recognized to have a multiplier effect across the SDGs. According to the UNDP SDGs Acceleration Agenda report, it is estimated that digital technologies and data contribute to at least 70% of the 169 SDG targets, impacting their economic social and environmental dimensions. Young minds are harnessing technology to create sustainable solutions for the world’s most pressing challenges.

Esther Wangari, a virtual assistant from Kirinyaga Central did the ice breaking at the webinar session by explaining her journey. After being frustrated on job search she heard through a friend about Ajira Digital Program. She registered and trained in transcription where after she managed to secure digital transcription work with the Judiciary digitization pilot program that was executed by Ajira Digital with the support of Mastercard Foundation and KEPSA. Esther explained that after the pilot program she had grown an appetite for digital work and continued to explore for more work opportunities. She is currently signed up at the Upwork platform and executes virtual assistance services to different international clients.

While advising the young people, Esther explained that she has been also at a frustrating situation having acquired skills and could not access any job. She explained that the problem in that case does not lie with the skills but mostly due to the mindset and determination people have when trying to access work through the digital work platforms. Many young people join the digital space with the expectation of quick earnings and returns with minimal effort, yet there is a lot of effort required including brand positioning and carrying out several assessments to eventually secure a client. The skilling partners need to communicate the same clearly to young people and remind them that digital work is like any other nine to five physical job that calls for hard work and persistence for quality delivery and better earnings. The more you gain experience, the more work comes your way, ultimately leading to higher pay.

While delivering her Key note address Dr Wanjiru Kariuki, Secretary for Skills Development at the State Department for Labour and Skills Development, highlighted that through the years skills have been developed without adequate consultation with industry, leading to a significant skills mismatch. This mismatch has been a contributing factor to the high levels of youth unemployment in the country. Currently, the statistics on youth employment were concerning with the rates of youth aged between 20-24 who have given up on looking for work stands at 30.4%, and for the age between 25-29 have the rate of 15.9, followed closely by those aged between 30-34 at 12.1%.

“In response to this, the government has developed the National Skills Development Policy, which was approved in 2023. This policy specifically addresses the skills mismatch by identifying the necessary policy actions to ensure sustainable socio-economic growth. The ultimate goal is to cultivate a skilled workforce that is employable, productive, enterprising, innovative, adaptable, and competitive. Our analysis has shown that university graduates have lower employability rates as compared to TVET (Technical and Vocational Education and Training) graduates. Youth who do not pursue tertiary education also face higher unemployment rates. It is crucial that we encourage a smooth transition from basic education to TVET or university, as having skills significantly increases employability. However, universities must also improve their alignment with labor market needs to ensure that their graduates are highly employable” said Dr. Wanjiru.

Moderating a panel session was Dr. Ehud Gachugu, Global Director, Youth and Jobs and Ajira Digital. “The International Youth Day 2024 celebration could not have come at a better time than now. We firmly believe that investing in our young people is a priority for all of us if we are to make progress. I believe that as we continue to explore the opportunities in the digital economy, it's important to recognize that Kenya is truly a leading powerhouse in digital transformation in the region. That's what we are capitalizing on and will continue to capitalize on to ensure our young people are not left behind by this transformation. We are committed to creating the necessary opportunities for them, building their capacity, and I'm really glad to hear how the policy environment is rapidly changing to adapt to the current context we find ourselves in” said Dr. Gachugu.

At the panel session, Muchemi Wambugu, Resident Digital Economy at the Mastercard Foundation was discussing the impact of digital skills, innovation and digital work in easing the challenges and societal pressures such as high unemployment rates for young people. Muchemi highlighted that Mastercard Foundation through partnership with like-minded stakeholders aim to impact over 7 million youth in Africa by the year 2030 with one million in Kenya in the digital space. Mastercard Foundation programming is very specific targeting the youth bracket of 18 years to 35 years for digital skills and digital work of whom 70 per cent are young women, 5 per cent should be within the displaced population and another target of 5 per cent being persons with disabilities.

“We are in the process of designing new programming so that more young people can get into the job space. One of the things we are doing as the Foundation is to try get linkages through Azure digital platform and happy that it will be connected to the post training.go.ke. We are also setting up a Youth Opportunity hub, which will show all the market spaces and the programming that we do, and how the courses are availed” said Muchemi. He added that on challenges of owning devices by most young people, the Foundation is working with partners to provide bursaries as well as free courses through partnerships with Amazon and Microsoft, giving an equal space in the ecosystem and allowing success for all.

Winnie Karanu, the AI National Skills Director at Microsoft, while expounding on the collective action and the role of AI in Shaping the Future of Work, mentioned how AI is uniquely poised to create a whole new way of working. According to a recent Work Trend Index conducted by Microsoft, Ms Karanu revealed that 60% of survey respondents struggled with spending too much time searching for information during their workday. At the same time, while 54% of people are concerned that AI might replace their jobs, an even larger proportion of 77% are already using AI at work, with many bringing their own AI tools to the workplace.

“To fully leverage on the benefits of AI, it is essential that job seekers and professionals develop skills in working with AI. Since the launch of ChatGPT nearly two years ago, we've seen a significant change in how we approach work. The ability to sift through vast amounts of information with just one prompt, is transformative. It underscores the importance of educating people about this technology, what it can do, and how they can harness it. I believe AI has the potential to revolutionize industries such as agriculture, healthcare, and various service sectors. Africa's informal sector is unique, and we must ensure that our efforts are as inclusive as possible. The informal sector contributes significantly to the job market, and there is much work being done to digitize this sector and create more opportunities for young people.” said Ms. Karanu.

Speaking as an intermediary between the private sector and the workforce, Martin Karori, CEO and Founder of Skills Hub explained the key focus for businesses being profit making and not creation of jobs. He went ahead to expound that businesses only creates work when they are able to expand and hire more skilled labour. However, reports have also shown that 75% of employers around the world are struggling to secure the right skilled workforce that will help them expand their margins. The studies further show that 55% of those companies are willing to outsource talents from other regions in addition to their areas of origins. Hence, despite the high unemployment rates in Kenya, the country still stands chances of accessing work opportunities outside its borders. Skills Hub therefore sets up programs to make the interested workforce work ready for the identified markets then proceed to place them on projects and work available.

Gideon Murenga, Senior TVET and Labour Market Advisor-Youth Employment and Vocational Training at GIZ explained the role of skills industry matching through the Dual TVET program that GIZ is executing through partners such as KEPSA. “Dual TVET Program is actually a German model of trading. But we are using an adapted version that works in the Kenyan context. We are partnering with about 1,300 industries mixed from bigger industries like Coca-cola. We have very small Smes very small salons cutting across various process. So, the idea behind this is to enhance the ability of young people by ensuring that they acquire industry, relevant training programs while still in school. This ensures that their transition into work becomes easier as they are equipped with market relevant skills before fully joining the markets” said Murenga. 

Ms Beatrice Gichohi, Country Lead for Challenge Fund for Youth Employment Kenya highlighted on the different efforts by CFYE in partnership with other private sector players in three key sectors: green jobs, digital jobs, and the creative sector that have flourished since COVID-19 Pandemic struck back in 2020. By injecting funds, offering them grants and technical assistance, CFYE continues to help these organizations achieve in a shorter period what might have otherwise taken them years. This acceleration is crucial for realizing job opportunities for the young people.

“Decent employment is our priority. It is critical to define and support clear employment pathways so that young people, beyond just obtaining skills, can actually find job opportunities. Moreover, we recognize the issue of underemployment. We support initiatives that help improve their incomes and livelihoods, which is another critical pathway in supporting young people. In regards to the integration of digital and green sectors, digital capabilities plays a vital role in supporting green initiatives whether by improving energy efficiencies, digitizing systems for better efficiency, or utilizing data for informed decision-making. Additionally, a lot of traditional sectors, like construction, are now embracing greening through digital innovation, creating numerous jobs along the way” explained Ms. Gichohi.

In conclusion, Dr. Gachugu urged the participants on the need of collaborating with the private sector in understanding the demands of the market that will address the issue of skills mismatch while providing solutions to businesses and the society. There was also a keen focus on the need to support the informal sector through digitization by promoting apprenticeships and internships which are crucial for developing the necessary skills sets for growth. The young people were requested to adopt a persistent mindset. The webinar highlighted the need to reskill, upskill, multi-skill and even consider portable skills which will prepare young people for the labour markets and a sustainable future.