Youth advocate Peter Gitau has urged the government to prioritise private sector growth and entrepreneurship, warning that public employment alone cannot address Kenya’s growing unemployment challenge.
Speaking on Radio Generation on Tuesday, October 13 2026, Gitau called for tax incentives, reduced licensing requirements, and better access to business financing to help enterprises expand and create sustainable jobs for young people.
His remarks come amid continued pressure on the labour market, with thousands of young Kenyans entering the workforce annually while opportunities for formal employment remain limited.
According to the Kenya National Bureau of Statistics (KNBS), Kenya created 822,100 jobs in 2025, with 716,800 (87.2%) generated in the informal sector. The sector’s employment increased to 18.1 million people, compared with 3.5 million in formal employment.
Gitau argued that the government should focus on creating conditions that let businesses grow rather than trying to become the principal employer.
“The government does wrong when it tries to be the net employer. In a country like ours, the public sector is not the largest employer. Out of perhaps three million people in formal employment, the government accounts for close to one million, or about 30 per cent. The private sector can employ far more people through different businesses and economic activities,” he said.
According to KNBS, modern-sector wage employment reached 3.315 million people in 2025, comprising 2.245 million private-sector workers and 1.07 million public-sector employees. Private-sector wage employment grew by 2.5%, compared with 4.6% in the public sector.
The youth advocate maintained that policymakers should consider the millions of graduates seeking opportunities beyond government recruitment, arguing that investment in public projects must be accompanied by measures that support long-term job creation.
He explained that projects such as housing construction could provide employment during implementation, but the government needed to consider what would happen to workers after the projects were completed.
“The government is supposed to be looking at how the private sector can thrive and offer employment to people. If a young person graduates and is encouraged to start a business, the government should reduce the number of licences they need and perhaps give them a grace period of six months to establish the business. That person could eventually employ many more young people.”
Gitau proposed reducing bureaucratic requirements for start-ups and introducing incentives that would allow young entrepreneurs to establish businesses without facing high initial costs.
He also called for reforms in the education system to equip learners with entrepreneurial skills, arguing that encouraging self-employment would have limited impact without access to capital and other business support services.
Gitau said young entrepreneurs often struggle to secure loans because financial institutions demand substantial collateral and established business histories that new enterprises cannot readily provide.
“Teaching people to become entrepreneurs is not enough. It is a whole ecosystem. You teach someone to start a business, then they go to a bank looking for capital and are told they need years of experience and substantial land as security. Where is that young person supposed to get the capital?” he asked.
He called for tax incentives for businesses investing in equipment and manufacturing, saying targeted support could encourage expansion, improve productivity and increase demand for workers.
Gitau maintained that the government should look beyond immediate political considerations and develop policies that create lasting economic opportunities beyond the 2027 General Election.
He concluded that a combination of entrepreneurship education, accessible financing, lower business costs, and investment incentives would help young Kenyans build sustainable enterprises and strengthen employment across the country.