Kenyan youths surviving on side hustles as salaries remain meagre

Majority of Kenyan youths depend on side hustles to make ends meet, a new report shows.

This is on the back of low earnings for those that have managed to secure employment, as the country continues to grapple with high unemployment.

According to a survey by research firm–GeoPoll, conducted across all the 47 counties, majority of the employed youth make less than Sh30,000 per month.

An estimated 20 per cent earn between Sh30,000 and Sh50,000, about 17 per cent have an income ranging from Sh50,000 to Sh80,000 with only six per cent indicating they they earn over Sh150,000.

This has pushed many to have side hustles to supplement their earnings, the firm indicates, amid a growing desire for self-employment as a pathway to economic independence and opportunity.

The National Council for Population and Development data indicates the youth forms about 35 per cent of the country’s population yet have the highest unemployment rate of 67 per cent.

The youth in Kenya are defined as those aged 18-34 years with the country witnessing a bulge.

The government has continued to heavily invest in technical and vocational institutions to help address gaps in employability by developing and training skill-based human capital for the purpose of employment, where over a million young people enter the labour market annually.

With limited formal job opportunities and increasing economic pressures, many young people are compelled to explore alternative means of livelihood.

“The survey revealed a strong entrepreneurial spirit among Kenyan youth, with an overwhelming 87 per cent expressing interest in starting their own businesses,” GeoPoll noted in its report.

When asked about some of the challenges they faced as being unemployed, a staggering 80 per cent of respondents cited a lack of job opportunities as the primary hurdle.

Additionally, 42 per cent pointed to the pervasive issue of nepotism and cronysm, expressing frustration over the necessity of personal connections to secure employment. Insufficient networking opportunities were highlighted by 39 per cent of participants, while 34 per cent underscored inadequate support from government and institutions as a barrier.

Other significant challenges include lack of work experience ( 32%), limited access to career guidance ( 17%), and skills mismatches ( 17%).

Mental health struggles and low morale also emerged, six per cent noting the emotional toll of prolonged unemployment.

“Despite the variations in employment status, the majority of respondents ( 71%) reported having side hustles—small-scale entrepreneurial activities that supplement their income. This highlights the resilience and adaptability of Kenya’s youth, who are leveraging their skills and creativity to navigate an unpredictable economic environment,” the report states.

The survey which ran via the GeoPoll mobile application between November 10-15, 2024 sampled 749 youths with the largest share being between 25-35 years old ( 64%), and comprised 63 per cent male and 37 per cent female.

A significant number held college degrees ( 70%). It indicates 56 per cent of respondents prefer running their businesses full-time, while 39 per cent expressed interest in pursuing entrepreneurship on a part-time basis.

Notably, six per cent remained uncertain about their preferred approach. When it comes to sectors of interest, retail and trade emerged as the most desired field, followed by agriculture, reflecting the sector’s longstanding significance in Kenya’s economy.

Technology ranked third highlighting the growing appeal of innovation and digital solutions among the youth. These preferences underscore a blend of traditional and modern entrepreneurial pursuits shaped by both market opportunities and emerging trends.

Starting a business in Kenya however presents several challenges according to the survey, where a significant 72 per cent of respondents cited lack of access to capital as the primary obstacle, limiting their ability to realise their ideas.

Other challenges are absence of support systems or mentors, market competition and lack of business knowledge and skills.

Financial support (grants and loans at 82 per cent), is the most sought-after form of assistance for aspiring young entrepreneurs, with 82 per cent of respondents identifying it as crucial to starting their businesses.

This highlights the significant role of access to capital in empowering youth to overcome financial barriers and kickstart their ventures.

The survey also found that mentorship and guidance are highly valued by young entrepreneurs, with 51 per cent of respondents identifying them as essential forms of support.

The survey further revealed that skill training programmes, government policies and incentives that support starting businesses are a key need for young entrepreneurs.