1. MEETING AFRICA’S YOUTH EMPLOYMENT CHALLENGE Seminar at the World Bank Headquarters during the Bank-Fund Spring Meetings, Washington D.C. 11 th April, 2014 KENYA’S EXPERIENCE by Prof. Njuguna Ndung’u, CBS Governor, Central Bank of Kenya

2. Outline 1. Characteristics of the Youth in Kenya. 2. Institutional Framework for Youth Development in Kenya. 3. Current Policy Priorities to Facilitate Youth Employment. 4. Country Experiences, Successes and Way Forward. 2

3. 1.Characteristics of the Youth in Kenya 1. The Youth in Kenya are the more educated and most innovative segment of the population – they are driving the ICT sector. 2. Their education is not being translated into productive employment in the current environment. 3. The Youth in Kenya comprise about 80 percent of the total population (below 35 years) – UNDP (2013). They form about 60 percent of the total labour force but about 70 percent are unemployed. 4. Youth also remain vulnerable to diseases – over 70 percent of those infected by HIV/AIDS are in this category. 5. The question is how to improve the quality of jobs to meet the aspirations of the Youth through sustainable programmes. 3

4. 2.Institutional Framework for Youth Development in Kenya 1. Kenya has developed an institutional framework to ensure that the Youth play their role in national development.  The National Youth Policy was enacted through Sessional Paper No.3 of 2007: It aims to address issues affecting the Youth through broad-based strategies giving them equal opportunities to achieve their maximum potential. It provides a broad framework within which stakeholders can contribute to Youth development, and suggests an implementation mechanism.  The Ministry of Youth/Gender/Sports was established to mainstream the interests of the Youth and other vulnerable groups in Government planning.  The new Sports Act is consistent with the Vision 2030 development plan and is aimed at developing talent and making sports a profitable venture for the Youth. 4

5. 2.Institutional Framework for Youth Development in Kenya... 2. There were previous efforts to initiate Youth development programmes through various Government development plans: The National Youth Service in Kenya is a voluntary programme introduced in 1964 to develop a pool of trained and disciplined Youth to enhance their employability and entrepreneurship. Youth development programmes were also embodied in the Third National Development Plan (1974-78), Sessional Paper No.2 of 1992 on Small Scale and Jua Kali Enterprises, the 1997-2001 Development Plan, the National Poverty Eradication Plan 1999- 2015, and Sessional Paper No.4 of 2005 on Youth development. 3. Previous Youth development initiatives were not effective due to: Lack of a credible mechanism to monitor, evaluate and report on Youth programmes. Limited resources due to other competing priority programmes. Lack of a clear link between the programmes with productive employment opportunities. 5

6. 3.Current Policy Priorities to Facilitate Youth Employment 1. Establishing micro-finance programmes or setting up special government funds to assist Youth in meeting financing needs for income generating projects. 2. Providing entrepreneurial, leadership and management training to the Youth and their organisations. 3. Introduction of free primary and secondary education to ensure that most poor people, including the Youth enhance their capacity in line with employment requirements. 4. Development and implementation of frameworks for enhancing partnerships between the Government and private sector to fund Youth activities. 6

7. 4.Country Experiences, Successes and Way Forward 1. The SMEs and Uwezo Funds offer the Youth working capital at very low interest rates – these funds supplement the National Youth Policy. 2. 30 percent of all government tenders are reserved for the Youth, women and persons with disabilities. 3. Enhanced investment in or up-scaling of sports facilities throughout the country to tap the sports talents in the Youth. 4. Establishing of talent centers or academies in strategic locations to tap and develop latent talents and innovations by the Youth. 5. Financial inclusion activities have created job opportunities in the economy especially for the Youth. 6. Free education is facilitating inclusive capacity development in the country – this has been augmented by the loans issued at subsidised interest rates with grace period for university students by the Higher Education Loans Board. 7

8. 4.Country Experiences, Successes and Way Forward... 7. Consistent with the World Bank Report on Youth Employment in SSA: Building a strong foundation for human capital development can boost earnings for the Youth. The balanced approach encompassing building skills, raising productivity, and increasing the demand for labour is necessary to ensure effective and sustainable Youth development and employment programmes. Enhancing the partnerships between the Government, the private sector and development partners are also necessary to the bridge the funding gap for Youth activities. 8