Kenya: Survey Reveals Key Insights Into Changing Demands for Skills in Kenya's Dynamic Job Market

22 November 2023

Nairobi — The Federation of Kenya Employers (FKE) in partnership with the Africa Digital Media Institute (ADMI), and Nexford University, have collaboratively launched a comprehensive report shedding light on the changing demands for skills in Kenya's workforce.

The survey, designed to capture the changing demands for skills, specifically targeted FKE members across diverse sectors, with a robust participation of 521 enterprises.

The enterprises under study showcased a demand for skills in various career fields - Information Technology (28.4%), Finance & Business Management (27.4%), Engineering (19.2%), Transportation, Distribution & Logistics (18.6%), and Legal (18.2%).

"This report sheds light on the critical intersection of education and industry needs. As we navigate the evolving demands of the workforce, it is imperative for educational institutions, businesses, and policymakers to collaborate in shaping an agile and skilled workforce that can drive innovation and sustainable economic growth," said Dr Laila Macharia, the CEO and co-founder of ADMI.

The predominant educational qualifications sought by these enterprises were undergraduate (Bachelor's) degrees (43.8%) followed byTechnical and Vocational Education and Training (TVET) (34.9%).

The top TVET skills in demand were in transport and logistics (21.3%), electrical (21.1%), and building and construction (18.2%). Within the engineering sector, computer and software engineering (30.7%) led the list, followed by electrical and electronics engineering (27.4%) and mechanical and production engineering (25%).

"With technological changes, labor market dynamics are evolving faster than ever and the mismatch between workers' skills and those required by available jobs has become a top priority policy concern. As such, many employers report difficulties finding suitably skilled workers, even though the unemployment rate is high." said Federation of Kenya Employers (FKE) CEO, Jacqueline Mugo.

Social skills such as effective communication (49.1%), critical thinking (41.7%), teamwork (25.7%), and time management (23.4%) were identified as crucial by the surveyed enterprises.

A noteworthy 73.1% of the studied enterprises utilized training to bridge the skills gap, often in collaboration with other organizations in the capacity-building space.

The survey highlighted that 20% of enterprises faced hard-to-fill vacancies, leading some to employ applicants with qualifications below their initial requirements (9.6%).

Industries like manufacturing reported the highest difficulty in filling positions.

"We're delighted to launch this report today in partnership with FKE and ADMI, it helps move us one step closer to integrating employers within the future of education in Kenya. The report clearly shows that employers need to do more to upskill their own team members and to partner with educators to bridge the gap between educators and employers. Equally, the report shows that while jobs may be limited compared to the size of Kenya's talent pool employers are still struggling to find qualified talent and that struggle will only increase as technology continues to disrupt industries", Fadl Al Tarzi, CEO of Nexford University.

Reasons for non-employment or staff retention challenges included a lack of qualified candidates in the local region (29%) and high salary expectations from candidates (26%).

Consequences of skills deficits included inhibiting business expansion (25%), loss of revenue (24%), and a decline in customers or market share (21%).

Enterprises addressed the skills gap by training existing employees (48%) and hiring new staff from the Kenyan job market (27%).

The education level demanded by enterprises varied across career fields, with secondary education mainly sought in public safety, corrections & and security (4.8%) and arts and recreational services (3.1%).

TVET skills were in demand in transport, distribution & logistics (26.5%), social service and community development (13.2%), and hospitality and tourism (11.1%).

Undergraduate degree qualifications were mostly sought in information technology (50.5%), finance business management (48.4%), and legal professions (36.5%).

The survey also shows that 39.3% of enterprises had plans to make their products/services more climate/environmentally friendly.

Concrete changes were implemented due to standards/requirements or expectations related to a green shift (26.1%), and 25.7% anticipated an increase in enterprise services/products as a consequence of the green shift.

Leadership competence (34.2%) and skilled worker competence (33.4%) were identified as essential for the green shift.

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