Five Leading Private Industries Driving Kenyan Employment Last Year

The latest Economic Survey, released by the Kenyan Bureau of Statistics (KNBS), has unveiled a modest yet significant growth of 2.4% in formal sector employment for the year 2024. This statistic reflects not just numbers, but the real lives of millions striving for stability and recognition in an ever-evolving job market.

Intriguingly, the informal sector dominated this landscape, accounting for a staggering 83.6% of total employment, which translates to roughly 17.4 million individuals operating in various capacities across the nation. This vast informal labor market is often overlooked yet plays a crucial role in sustaining families and communities. How many of us have encountered a local vendor or artisan whose work, though not officially recognized, contributes significantly to our economy?

“The informal sector created 703.7 thousand new jobs, which constituted 90.0% of all new jobs created, with the exclusion of small-scale agriculture,” the report cites. This reality poses a paradox: while the informal sector drives job creation, it also leaves many workers without vital social protections and stable incomes.

In a deeper exploration, the report further identifies that the number of self-employed and unpaid family workers in the modern sector increased by 1.8%, reaching an estimated 175.5 thousand in 2024. This growth presents an optimistic view amidst challenges, but is this growth sustainable, or will it merely serve as a temporary band-aid for deeper systemic issues?

If we shift our gaze to the private sector, it accounted for just 16.4% of total employment, with only 3.4 million people. This figure starkly underscores the pressing issue of job scarcity beyond informal and makeshift industries. As we ponder these statistics, we must ask ourselves: what can be done to encourage private sector growth that provides stable, long-term employment?

The lack of secure employment options, especially in the context of youth unemployment, can lead to social unrest and hinder economic progress. High unemployment rates among young adults often leave them feeling disillusioned and frustrated. As someone once said, “A job isn’t just a means to an end; it is a pathway to dignity.”

On a more positive note, in April 2025, Kenya’s private sector reported its fastest growth in 27 months, according to data from the Stanbic Bank Kenya Purchasing Managers’ Index (PMI). The PMI climbed from 51.7 in March to 52.0, marking a noteworthy shift. This upswing was primarily fueled by strong client demand, leading to increased output, purchasing, and job creation—particularly in the services, agricultural, and construction sectors. It seems that amidst an ocean of uncertainty, there are buoyant waves of opportunity surfacing.

Yet, it’s essential to approach this growth with cautious optimism. The forecasts from companies surveyed were among the lowest in the survey’s history, with only 5% of enterprises expecting an increase in output over the next year. The PMI survey revealed robust improvements in sectors like services and agriculture; however, manufacturing and wholesale & retail faced declining sales. This discrepancy serves as a reminder that while growth can be promising, it is not uniform across industries.

The Kenyan private sector remains a pivotal force for job creation and economic expansion. Recent advancements showcase optimism, but addressing the underlying challenges is crucial for ensuring that this growth is inclusive and sustainable. The sentiment that “the road to progress is paved with collaboration” rings true, emphasizing the need for coordinated efforts across all sectors of society.

Fully harnessing the potential of Kenya’s private sector requires overcoming structural challenges. If we can foster an environment conducive to private enterprise, we not only bolster employment figures but also enhance the overall economic landscape.

With that context in mind, it’s essential to highlight the specific areas within the private sector where many Kenyans found employment in 2024, according to the Economic Survey Report. Understanding where these job opportunities lie can guide both individuals seeking employment and policymakers strategizing for future growth.

Top 5 Private Sectors That Employed the Most Kenyans in the Last Fiscal Year

As we survey these figures, it becomes clear that the interplay of various sectors will remain pivotal in shaping Kenya’s economic future. Challenging times lie ahead, but with resilience and collaboration, the road to a brighter economic horizon is indeed within reach.

Edited By Ali Musa
Axadle Times International – Monitoring.