The government has partnered with the Kenya Private Sector Alliance to roll out 50,000 internship programmes.
The initiative is part of the government's move to curb the unemployment gap.
Thousands of graduates will receive on-job training and skilling through the programme dubbed 'Kenya Internship and Jobs Initiative'
State Department for Industry Principal Secretary Juma Mukhwana said students will also compete effectively with their counterparts around the world.
"The initiative to be launched later this year will complement the Public Service Internship Programme and the Teachers Service Commission internship programme which have absorbed 4,000 and 25,000 fresh graduates respectively," Mukhwana said.
Interested candidates have been asked to apply online on a portal www.kiji.go.ke, where various players in the private sector will post openings.
"The portal has already been activated with over 20,000 opportunities advertised," Mukhwana said.
He added that besides the interns receiving a monthly stipend, they will also be equipped with the necessary skills to compete effectively for opportunities locally and globally.
Mukhwana said the government has formulated a framework to facilitate the smooth running of the programme.
The framework outlines what is expected from the industry interns regarding working conditions, insurance, duration of the internship and amount of money to be paid to the interns.
"What was delaying us was the lack of a framework to roll out the programme. We did not want our interns to go into industries with poor working conditions," he said.
"We have seen cases where our graduates, once given an opportunity, cannot deliver. Therefore, we must ensure that the training we offer matches industry needs."
He lauded the partnership with the private sector and urged other players in the sector to come on board to help narrow the unemployment gap in the country.