Kenya, and by extension East Africa, is taxiing towards a major economic transformation that is being driven by the youth, who are increasingly having a say in the direction and pace the economy will take in the coming years. They have great ideas, energy and the commitment that is needed to drive transformation.

But there is a big challenge ahead, as more youths find themselves without jobs. Youth unemployment is a global issue.

The youth who account for four out of every 10 people without a job, 90 per cent of whom are in the developing world. In Africa, about 200 million people are aged between 15 and 24.

The continent also has the youngest population in the world, who account for almost 45 per cent of the total labour force. Unlike other developing regions, sub-Saharan Africa’s population is becoming more youthful, due to the high fertility rate underlying the demographic momentum.

About 800,000 young Kenyans enter the labour market every year, with the majority of the unemployed youth being below 35 years old.

As much as unemployment can be seen as a challenge, it has opened a whole world of opportunities for various stakeholders to roll up their sleeves rise to the challenge.

Devolution as a stimulus for job creation

One of the most outstanding developments of recent times have been the transfer of key services and functions to counties. The transition to a devolved system of governance has resulted in opening up of new sectors of the economy as well as increased economic activities impacting positively on employment creation.

The amendment of procurement rules in 2013 to reserve 30 per cent of public contracts for the youth, women and persons with disability, establishment of the Access to Government Procurement Opportunities (AGPO) initiative to facilitate enterprises owned by the youth, women and persons with disability to participate in government procurement as well as the setting up of Uwezo Fund are some of the avenues through which youth have gained meaningful engagement.

New frontier of growth

Reviving agriculture remains Kenya’s main pathway to poverty reduction while the real gains will come from increasing productivity in the Jua Kali sector, which comprises 90 per cent of all businesses in the country and contributes to 3 per cent of Kenya’s GDP.

The existence of an enabling environment for businesses to carry out their activities is a critical step towards the realisation of Kenya’s goal of sustainable industrialisation and inclusive growth. As industry stakeholders, there is a need for us to bring in complementary skills and competencies that enhance the productivity of the Kenyan youth.

We have realised that more emphasis need to be put on investments geared towards transforming the informal sector which according to the Economic Survey 2015, created 693,000 new jobs in 2014 constituting 82.7 per cent of the total employment.

Supporting global goals

After the deliberations during the 2015 UN General Assembly, member countries adopted the Sustainable Development Goals (SDGs) that marked an ambitious and urgent expansion of the MDGs to addressing the world’s most pressing challenges.

One of the pronouncements that caught world attention was goal number 8, under which, by 2020, all member state need to have developed and operationalised a global strategy for youth employment.

The broader sustainability agenda goes much further than the MDGs in addressing the root causes of poverty and the universal need for development that works for all people. There is also a need to encourage and promote effective public, public-private and civil society partnerships aimed at creating an inclusive, employment-creating and sustainable growth strategy geared towards addressing the special needs of the youth.

One of the key propositions we have been advancing is forging and strengthening linkages between the informal sector and the private sector in an effort to support the youth.

This is hinged on the fact that the impact of a stronger private sector and economic growth on youth employment requires intelligent policies based on a sound understanding of the issues that the young face in finding, and holding on to, decent employment opportunities

The private sector not only provides the much needed funding for the various projects, it also brings in business acumen and project management skills.

Big corporates are realising this. Through the social investment arm KCB Foundation, our bank has initiated a Ksh50 billion 2Jiajiri programme expected to benefit at least 500,000 youths — creating 2.5 million direct and indirect jobs — in a period of five years, potentially opening up new possibilities for small and informal businesses to thrive.

The programme, which also encompasses a business challenge for start-ups, will enable young entrepreneurs to submit their business ideas for funding in order to boost their productivity. This will mainly be centred in the leather, agro-processing, furniture, metal fabrication and other trades in the informal sector by the end of 2016.

I believe that that through collaborative efforts with various stakeholders, the journey towards the realisation of our industrialisation dream will be achieved in a smooth manner. It is the young people who have built some of the world’s greatest innovations, riding on a wave of technological advancement.

They are creating cutting-edge mobile technologies to solve African problems in communities closest to them. Young people in Kenya and on the continent at large are more upbeat about their ability to become entrepreneurs than their peers in any other region and therefore the need for us as private sector players and investors to either make access to finance for startups easy or offer mentorship programmes that support their business growth.

Joshua Oigara is the KCB Group chief executive officer and chairman of the Kenya Bankers Association.