Atwoli Sounds Alarm on Unemployment Crisis: ‘Economic Growth Not Creating Jobs’

Francis Atwoli, the Secretary General of the Central Organisation of Trade Unions (COTU), has issued a powerful warning over the deepening unemployment crisis not only in Kenya but across many nations worldwide. Speaking at the 113th International Labour Conference (ILC) in Geneva, Atwoli revealed a worrying disconnect between Kenya’s economic growth and the failure to generate adequate formal employment opportunities.

Despite Kenya’s gross domestic product (GDP) showing consistent growth over recent years, the reality on the ground paints a much harsher picture: nearly five million Kenyans remain unemployed. This discrepancy exposes a critical challenge — economic expansion that fails to translate into meaningful job creation.

Kenya’s Jobless Reality: Economic Growth Without Employment

Kenya’s economy has been hailed as one of the fastest-growing in Sub-Saharan Africa, with the World Bank reporting steady GDP growth rates averaging around 5.5% annually in the past decade. The growth has been driven by sectors such as telecommunications, agriculture, manufacturing, and infrastructure development. Mega-projects like the Standard Gauge Railway (SGR), road expansions, and urban housing have received global attention.

However, as Atwoli pointed out in Geneva, these signs of progress do not trickle down to creating enough jobs — especially quality jobs that provide economic security, social protection, and career advancement. The vast majority of the Kenyan workforce remains in the informal sector, characterized by instability, low wages, and minimal worker rights.

According to data from the Kenya National Bureau of Statistics (KNBS), more than 80% of employed Kenyans operate in the informal economy. This includes street vendors, small-scale artisans, casual laborers, and others working without formal contracts or benefits like pensions, health insurance, or paid leave. The informal sector’s dominance highlights a structural problem where growth benefits few and leaves most workers vulnerable.

The Informal Sector: A Double-Edged Sword

While the informal sector provides livelihoods for millions, it often traps workers in cycles of poverty and precarity. The International Labour Organization (ILO) defines informal employment as jobs without social protection and with limited legal or regulatory oversight.

Atwoli emphasized that many Kenyan workers have no choice but to depend on this informal economy, which does not offer long-term stability or pathways out of poverty. The issue is not unique to Kenya; across Africa and the developing world, informal work constitutes a significant share of employment but remains largely invisible in economic policies.

The risks of informal employment include:

• Low and unpredictable income
  
• Absence of social security benefits
  
• Lack of workplace safety standards
  
• No formal mechanisms for dispute resolution

This precariousness creates social and economic fragility, as millions of workers remain unprotected from shocks such as illness, economic downturns, or inflation.

Unemployment and Youth: A Brewing Social Crisis

Young people are disproportionately affected by the lack of formal employment opportunities. Kenya’s youth unemployment rate remains alarmingly high, hovering around 22% according to KNBS. This figure masks an even deeper challenge: many young Kenyans either cannot find work or are forced into informal, low-paying jobs below their skill levels.

Atwoli sounded a clear warning that without urgent interventions, this scenario could fuel inequality, social unrest, and long-term instability. He said:

“Many working people today feel abandoned and unprotected. They have lost trust in institutions and no longer feel part of the societies in which they live.”

This sense of disenfranchisement risks driving frustration into protests, crime, or even political radicalization. Recent history in Kenya shows how economic marginalization can spark youth-led movements demanding reforms.

The Labour Migration Exodus: Dreams, Desperation, and Danger

A key consequence of this unemployment crisis is the mass migration of Kenyan youth seeking jobs abroad. Atwoli highlighted this trend at the ILC, pointing to a steady outflow of workers to the Gulf countries, Europe, and North America. Many are lured by promises of higher wages and better opportunities, often facilitated by informal recruitment channels.

The International Organization for Migration (IOM) notes that labour migration has become a critical coping mechanism for many young Kenyans facing bleak domestic prospects. However, this migration often occurs under poorly regulated frameworks, leaving workers vulnerable to exploitation.

The challenges faced by Kenyan migrant workers include:

• Exploitation by unscrupulous recruiters
  
• Wage theft or delayed payments
  
• Abusive or unsafe working conditions
  
• Limited access to legal recourse
  

Reports of abuse and mistreatment have increased, sparking calls for stronger government oversight and protective policies.

Kenya’s Government and Labour Migration Policy: A Call for Reform

Atwoli’s speech was a clarion call for urgent reforms to regulate labour migration, ensure fair treatment of migrant workers, and hold exploitative employers accountable. Kenya has made some strides in this regard. The Ministry of Labour and Social Protection has launched initiatives to better monitor labour migration and protect Kenyan diaspora workers.

However, gaps remain in:

• Contract vetting and enforcement
  
• Worker education and awareness
  
• Bilateral agreements with host countries
  
• Legal support for abused workers

Atwoli urged policymakers to develop comprehensive regulatory frameworks, including:

• Strengthening vetting processes for overseas employment contracts
• Enhancing pre-departure orientation and training for migrant workers
• Establishing bilateral labour agreements ensuring workers’ rights are protected abroad
• Creating mechanisms for rapid response and legal redress for abuses

Economic Diversification: A Pathway to Job Creation

Beyond migration reforms, addressing the unemployment crisis requires a fundamental rethinking of Kenya’s economic model. Experts argue that Kenya needs to accelerate economic diversification and move beyond traditional sectors to generate quality jobs.

A report by the African Development Bank (AfDB) emphasizes that Kenya’s job market can expand through:

• Boosting manufacturing with focus on value addition
  
• Promoting agribusiness and agro-processing
  
• Investing in the digital economy and technology startups
  
• Developing sustainable tourism
  
• Encouraging entrepreneurship and SMEs
  

Government initiatives such as the Big Four Agenda have prioritized manufacturing, affordable housing, universal healthcare, and food security to spur economic growth and employment.

However, the pace of implementation and impact on job creation remain slow, requiring increased focus on skills training and education to align workforce capabilities with emerging sectors.

Social Protection: Bridging the Gap for Informal Workers

Since over 80% of employed Kenyans are in the informal sector, expanding social protection coverage is crucial to reduce vulnerability. The government has piloted schemes like the National Social Security Fund (NSSF) and the National Hospital Insurance Fund (NHIF) aimed at informal workers.

However, uptake remains limited due to affordability challenges, lack of awareness, and administrative hurdles. Strengthening these schemes and introducing innovative social safety nets will be essential in enhancing informal workers’ resilience.

International Support and Multilateral Cooperation

The international community plays a key role in supporting Kenya’s efforts to tackle unemployment and labour migration challenges. Institutions such as the ILO provide technical assistance in labour market reforms, social protection, and decent work promotion.

Furthermore, international partnerships are vital for establishing ethical labour migration corridors. Collaborative frameworks between Kenya and destination countries can improve migrant workers’ protection and reduce exploitation risks.

Conclusion: Urgent Action Needed to Reverse Trends

Francis Atwoli’s urgent call during the 113th ILC underscores that economic growth alone is insufficient if it does not translate into job creation and worker protection. For Kenya, addressing the unemployment crisis demands coordinated efforts across government, private sector, civil society, and international partners.

Protecting the dignity and rights of workers, reforming labour migration frameworks, and promoting inclusive economic policies are imperative to build a resilient workforce and a more equitable society. Without such reforms, the growing disconnect between GDP growth and employment risks deepening inequality and social unrest in Kenya and beyond.

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photo source: Google

By: Montel Kamau

Serrari Financial Analyst

5th June, 2025