Determinants of Youth Unemployment and Entrepreneurship in Kenya Dr Diana Kimani Dr Patrick Kariuki
OUTLINE Introduction Objectives Data Methodology Results Policy Implications
RELATIVE LOCATION
Introduction 43 percent of Kenyan population is below age 15 Age 15-35 years approx. 36% of the total population National unemployment rate about 12.7% 70% of the unemployed nationally are the youth Focus on youth to address unemployment Employment Policies based on national household surveys which are limited in youth-related data. Therefore need for comprehensive data on youth to address the youth unemployment
POPULATION PYRAMID OF KENYA Population Pyramid of Kenya, 2009 Age Group 80+ 75-79 70-74 65-69 60-64 55-59 50-54 45-49 40-44 35-39 30-34 25-29 20-24 15-19 10 _14 5_9 0-4 0.8 0.5 0.8 1.0 1.5 1.9 2.5 3.3 3.9 5.2 6.5 8.0 9.1 11.1 13.4 14.8 15.6 1.2 0.6 0.9 1.1 1.5 1.8 2.5 3.3 3.8 5.2 6.5 8.6 10.4 10.5 12.7 14.2 15.1 Female (%) Male (%) 20 15 10 5 0 5 10 15 20 % in each age group
Kenya s demographic transition Figure shows working age population (15-64 years) and the dependant age population (0-14 and 65+ years). It indicates that by the year 2020, the gap will widen as the proportion of the working age population will grow much faster than the dependant population ages. Reduced dependency ratios will allow greater personal savings and government spending. Therefore, Kenya will be in a position to gain from a demographic dividend provided the right enabling environment prevails.
Kenya s Demographic transition 120,000 Population (thousands) 100,000 80,000 60,000 40,000 20,000 Population aged 15-64 - 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050 2055 2060 2065 2070 2075 2080 2085 2090 2095 2100 Population aged 0-14 and 65+
Research Questions What are the unemployment levels among youth? What are the poverty levels among the youth? What is the average education level of the youth in Muthithi location Are the youths accessing and benefiting from available government programs such as WEF, YEF and UWEZO fund What are the constraints that face young entrepreneurs in the process of owning, managing, operating and developing their enterprises What are the determinants of youth unemployment and entrepreneurship
Objectives To establish the unemployment levels among youth To establish the poverty levels among the youth? To assess the average education level of the youth in Muthithi location To examine youth accessibility to and benefit from available government programs such as WEF, YEF and UWEZO fund To examine the constraints facing young entrepreneurs in the process of owning, managing, operating and developing their enterprises To assess the determinants of youth unemployment and entrepreneurship in Muthithi Location
Data and Methodology Primary data on household, individual and community level characteristics The census was carried out between March and May 2016 using CBMS Scan installed in android tablets. Covered Muthithi Location made of 5 sub-locations: Muthithi, Gikarangu, Kiahiti, Kagurumo and Mungu-ini. Total data of 4247 households making it a total of 12,036 individuals Out this, data on youth was 2569 observations The data was analyzed using stata to generate the descriptive statistics and econometrics results
RESULTS Characteristics Muthithi Gikarang u Kiahiti Kagurum o Munguini Total Poverty headcount (%) 19.67 29.79 28.25 33.29 47.37 31.13 Poverty gap (Ksh) 234.6 404.9 339.9 381.5 773.1 420.3 Male 48.05 46.41 48.47 46.60 49.38 47.67 Marital status 66.22 66.97 63.50 65.87 65.02 65.74 No education 42.0 43.2 40.9 43.3 41.1 42.2 Primary schooling 39.1 38 42.4 39.1 39.4 39.3 Secondary 16.11 16.06 14.25 14.37 15.93 15.47 Tertiary 2.81 2.7 2.35 3.21 3.4 2.92 Mean Household size 3.5 3.7 3.4 4.0 3.5 3.6 Time to water source 7.4 11.4 11.5 14.2 8.0 10.4 market distance in km 1.78 6.81 2.94 6.29 4.98 4.65
Results: Descriptive statistics (Youth) Characteristics Muthithi Gikarangu Kiahiti Kagurumo Mungu Total Unemployment (%) 11.8 12.15 16.59 17.53 11.56 13.5 Entrepreneurship (%) 14.2 12.02 11.35 12.93 16.76 13.56 Poverty headcount (%) 23.8 35.91 36.63 43.49 53.89 38.42 Gender (%) 49.68 47.04 52.03 47.9 52.12 49.68 Child responsibility (%) 44.89 49.01 44.77 47.48 48.94 47.14 Youth group (%) 7.56 9.63 7.86 4.31 7.88 7.54 Women group (%) 20 29.36 25.49 39.43 28.14 28.14 Uwezo fund (No) 7 3 0 2 2 14 YEF (number) 1 6 0 0 0 7 WEF (Number) 1 1 0 1 0 3
RESULTS BY GENDER 80 70 60 50 40 30 68 32 52 48 53 47 40 60 56 44 54 46 52 48 49 51 68 32 20 10 0 Male Female
Constraints to Entrepreneurship No Inadequate mentorship skills and, 43 training, 41 Finance, 11 Access to electricity, 43 Transportati on, 53 Crime, 80 Business permit, 48
Policy Implications Low uptake of Government Funds Remove/reduce barriers (bureaucracies for YEF) to access Sensitize youths/communities on the availability of the funds Mentoring the youths on proposal and business plans development
Policy Implications Crime a major constraint to entrepreneurship Government to provide security (more police post, security lighting) Youth empowerment programmes ( one youth one cow ; one youth, 10 chicken ; one youth, 2 dairy goats etc)
Policy Implications Transportation second major constraint Improve roads infrastructure and increase access to markets by constructing new markets and rehabilitating the existing ones
Policy Implications Transition rates from primary to secondary low Increase access to secondary schools through bursaries, scholarships etc Address gender gap at tertiary levels Mentoring programmes for girls 9% of youths with no education Enforce the free primary education for every school going age child
Ahsante sana Maraming Salamat Merci beaucoup Thank you