In Kenya the Gini coefficient of inequality is at around 0.45%. Therefore, the economic growth statistics present an unequivocal picture of a highly unequal society, whose development strategy is largely leading to accumulation of wealth by a few and worsening the poverty of the majority. Consider just two statistics behind the picture: according to the Kenya National Bureau of Statistics, individuals in capital city Nairobi have about 15 times more access to secondary education than those living in Turkana, one of the poorest counties. Also, a household in Nairobi is 36 times more likely to have electricity for lighting compared with those in Tana River.
Without doubt, Kenya’s race towards the Sustainable Development Goals (SDGs), an agenda whose most notable tang of inclusivity is underscored by the now well-known phrase of ‘leaving no one behind’, is going to need the resilience of its world-beating athletes. The global SDGs agenda is a platform that aims to meet the greatest challenges of our times, with a dedicated focus on every person and the planet and a noble vision of eradicating poverty by 2030. With an increasing youthful population, Africa stands at a special place in the Agenda, considering that much of the rest of the world population is ageing. Today’s youth will be key to any sustainable development strategies, thus the need to ensure that there are enough opportunities for them to participate in the global economy.
It is estimated that over 600 million new jobs need to be created by 2030, just to keep pace with the growth of the global working age population. That’s around 40 million per year. In Kenya, a million youth enter the job market each year, but only one-fifth are absorbed. Unfortunately, among those who are ’employed’ are millions who are working but not earning. It has been reported that about 43% of the country’s youth are either unemployed or working yet living in poverty It is this phenomenon that has given rise to the agitation for “Decent Work”, which means opportunities for everyone to get work that is productive and which delivers a fair income, security in the workplace and social protection for families.
A continued lack of decent work opportunities, insufficient investments and under-consumption lead to an erosion of the basic social contract underlying democratic societies: that all must share in progress. This is why SDG Goal 8 on Decent Work and Economic Growth is of critical importance for Kenya. There is a need to ensure inclusive equitable economic growth hand in hand with the creation of decent and sustainable jobs. For several years now Kenya has been experiencing exceptional economic growth rates, even above the sub Saharan Africa average. Yet, not enough jobs have been created to absorb the new entrants and informality remains rampant rendering job quality as low. Unemployment, especially youth unemployment, is found more commonly in higher income countries – and Kenya is no longer a low income country but a middle income one with an annual per capita income of almost $3,000 at purchasing power parity. Educated unemployment is also more commonly found in countries where advances in education exceed those in the economy.
Production techniques change slower than the aspirations of the fast increasing Kenyan middle class fuelled by rising incomes (recently 6 percent annually) and increases in education attainment at all levels. In other words, Kenya is at a crossroads with economic and employment patterns similar to middle and higher income countries. Yet remaining on the agenda are the high income and regional disparities which need to be addressed. This attention is clearly called for in the country’s Constitution. For instance, clause 201 states that the public finance system is to promote an equitable society in that revenue raised nationally shall be shared equally between national and county governments, and expenditures will be oriented towards addressing the needs of marginalised groups and regions.
One way of ensuring the attainment of Decent Work for all is through improved labour market governance. Pertinent agenda include the laws, policies and institutions which determine and influence the demand and supply of labour. Labour market governance goes hand in hand with fair working conditions as one of the essential requirements of decent work. This includes decent wages, hours of work, rest and leave periods, adequate social security, freedom of association, the right to bargain collectively, and an absence of discrimination, or child labour. While those in the formal economy may have access to this many in the informal still do not.
Kenya has the potential to be one of Africa’s great success stories for economic growthand the attainment of SDG 8 by 2030: it has a growing youthful population, a dynamic private sector, a dynamic and progressive new constitution and a pivotal role in Africa. President Kenyatta in an address to Kenya’s youth said. “You are my partners in remaking Kenya – and my Government’s programmes reflect my faith in you,” Addressing challenges of poverty, inequality, labour market governance, labour productivity to achieve rapid, inclusive sustained growth with decent jobs will not only transform lives of ordinary citizens, but make Kenya an economic powerhouse.
By: Siddharth Chatterjee, UN Resident Coordinator to Kenya.