Informal work dominates as Kenya adds 3.27m jobs

  • Kenya added about 3.27 million jobs between 2022 and 2025, with 2.84 million coming from the informal sector.
  • KNBS data shows informal employment continues to dominate Kenya’s labour market, rising to about 18.1 million in 2025.
  • The figures highlight the need to focus not only on job numbers but also on income security, productivity and sustainable employment.

Four years into President William Ruto’s administration, jobs created remains a key indicator of Kenya’s economic performance. Available official statistics show a continued rise in the number of people engaged in work, although the bulk of this growth has been concentrated in the informal sector.

According to employment data from the Kenya National Bureau of Statistics (KNBS), Kenya recorded approximately 3.27 million additional jobs between 2022 and 2025.

These figures should, however, be interpreted within KNBS’s established methodology and should not be taken to mean that all jobs were directly created by the government.

In 2022, Kenya recorded 816,600 additional jobs, comprising 702,900 informal-sector jobs and 113,700 jobs in the modern sector.

In 2023, the economy added 848,200 jobs. Of these, 720,900 were in the informal sector, while 122,800 were in the modern sector.

A further 782,300 jobs were recorded in 2024, including 703,700 in the informal sector and 78,600 in the modern sector.

In 2025, KNBS reported 822,100 additional jobs, with approximately 716,800 in the informal sector and about 105,300 in the modern sector.

Collectively, the data indicate that roughly 2.84 million of the 3.27 million jobs created over the period were in the informal sector.

The 2022 figures should also be interpreted with caution, as President Ruto assumed office in September of that year and did not oversee the full employment cycle.

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The latest statistics underscore the continued dominance of informal enterprises and self-employment in Kenya’s labour market.

KNBS reports that total recorded employment, excluding small-scale agriculture, increased from approximately 20.8 million in 2024 to 21.6 million in 2025.

Informal-sector employment rose to about 18.1 million, while wage employment increased from approximately 3.21 million to 3.32 million.

These figures highlight that Kenya’s employment challenge is not only about the quantity of jobs created, but also their quality, stability, and productivity.

The government has identified several initiatives as contributors to job creation and broader economic opportunities.

Among them is the Affordable Housing Programme, which the administration links to both direct and indirect employment in construction and associated supply chains.

However, because employment figures attributed to specific programmes may be based on varying definitions, distinctions must be made between direct employment, indirect employment, and broader economic opportunities. These should not be conflated with national employment totals published by KNBS.

In May 2026, Labour Cabinet Secretary (CS) Alfred Mutua reported that more than 6.2 million jobs and employment opportunities had been created during the administration’s tenure.

This figure is significantly higher than the approximately 3.27 million jobs recorded in national employment statistics for 2022–2025.

The disparity does not necessarily indicate a contradiction, but rather reflects differences in measurement frameworks.

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KNBS data tracks net changes in employment across the economy, while government programme figures may include a broader range of employment opportunities linked to specific interventions and projects.

For clarity and accuracy in reporting, these measures should be presented separately rather than treated as directly comparable.

President Ruto has also acknowledged that unemployment and inadequate household incomes remain significant national challenges.

During the Beyond Vision 2030 national dialogue, he identified employment creation, income generation, and inequality as key issues that must be addressed in Kenya’s long-term development framework.

The President has highlighted micro, small, and medium enterprises as a critical pathway for expanding economic opportunities, particularly through improved access to finance, markets, and enterprise support.

Kenya’s employment data therefore presents a mixed but measurable picture.

While the country has recorded sustained growth in employment, the informal sector continues to account for the majority of new jobs.

The policy challenge moving forward is to strengthen productive enterprises, expand access to economic opportunities, enhance skills development, and create an enabling environment for business growth and sustainable job creation.

As Kenya shapes its development agenda beyond Vision 2030, employment is expected to remain a central policy priority.

The debate is therefore likely to extend beyond the number of jobs created to include equally important considerations such as productivity, income security, skills development, enterprise growth, and the sustainability of employment.

The available statistics confirm continued employment growth, while the dominance of informal work underscores the structural challenges that persist within Kenya’s labour market.

By Hillary Muhalya

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