Kenya LMP 2020

Labour Market Profile
2020
Danish Trade Union
Development Agency,
Analytical Unit
KENYA
Danish Trade Union Development Agency
Kenya Labour Market Profile 2020
PREFACE
Danish Trade Union Development Agency (DTDA) is the legal reforms, status vis-à-vis ILO conventions and
development organisation of the Danish trade union labour standards, among others.
movement. It was established in 1987 by the two
largest Danish confederations – Danish Federation of Main sources of data and information for LMPs are:
Trade Unions (Danish acronym: LO) and Danish
Confederation of Professionals (Danish acronym: FTF).  As part of program implementation and
These two organisations merged to become the Danish monitoring, national partner organisations provide
Trade Union Confederation (Danish acronym: FH) in annual narrative progress reports, including
January 2019. By the same token, the former name of information on labour market developments.
this organisation, known as the LO/FTF Council, was Furthermore, specific types of data and information
changed to DTDA. relating to key indicators are collected by use of a
unique data collection tool.
The work of DTDA is in line to the International Labour
Organization’s (ILO) Decent Work Agenda (DWA) with  National statistical institutions and internatinal
the four Decent Work Pillars: Creating decent jobs, databanks are used as source for collection of
guaranteeing rights at work, extending social protection general (statistical) data and information. This
and promoting social dialogue. The overall includes the ILOSTAT and NATLEX, World Bank
development objective of DTDA’s interventions in the Open Data, ITUC Survey of violations of Trade
South is to eradicate poverty and support the Union Rights, the U.S. Department of State as well
development of just and democratic societies by as other labour related global indexes.
furthering the DWA.
 Academia and media sources (e.g. LabourStart,
DTDA works in partnership collaboration with trade national news, etc.) are also used in the general
union organisations in Africa, Asia, Latin America and research on labour market issues.
the Middle East. The immediate objective of the
programme collaboration is to assist the partner Labour Market Profiles for more than 30 countries are
organisations in becoming change agents in their own available on the DTDA website:
national and regional labour market context, capable http://www.ulandssekretariatet.dk/content/landeanaly
of achieving tangible improvements in the national ser).
DWA conditions and towards the achievement of the
labour-related Sustainable Development Goals’ (SDGs). DTDA’s Analytical Unit in Copenhagen prepared this
Labour Market Profile in close collaboration with the
The format of the Labour Market Profile (LMP) provides DTDA Eastern Africa sub-Regional Office in Tanzania
a comprehensive overview of the labour market and Central Organization of Trade Unions (COTU) in
situation in the individual countries of engagement. LMP Kenya.
aims at giving a comprehensive view of structures,
developments and challenges in the labour markets. The Should you have questions about the profile, you can
document is divided into eleven thematic sections contact Kasper Andersen ([email protected]), Manager of
describing trade unions, employers’ organisations, the Analytical Unit.
government, bi-/tripartite institutions and social
dialogue, national labour legislation, violations of trade Address:
union rights, working conditions, status of the workforce, Ulandssekretariatet
education, social protection, and economy. Islands Brygge 32D
DK-2300 Copenhagen S
In the framework of DWA and SDGs, LMPs are Denmark
reporting on several key indicators addressing several Telefon: +45 33 73 74 40
aspects of labour market development, especially the http://www.ulandssekretariatet.dk
trade union membership evolution, social dialogue and
bi-/tri-partite mechanisms, policy development and
Page i
EXECUTIVE SUMMARY
Kenya is a lower-middle income country with well- population. It has held up the structural development in
organised industrial relations, but structural challenges are the employment. The rapid urbanisation fosters high youth
affecting the labour market. Economic growth has been unemployment (18%) and youth underemployment (80%),
robust, along with increasing wages. However, a majority which are among the central labour-related challenges in
of the workforce operates in the informal economy (83%), the country.
which is shaded by non-compliance of labour regulations
(including wages). An increase in living cost has eroded The 2010 Constitution provides a framework for
incomes’ purchasing power and projections on the addressing gender equality. Discriminatory gender
progress of employment by middle-class has been practices are widespread, though; e.g. women are often
sluggish reaching 20% in 2020. trapped in vulnerable employment conditions and do not
receive equal pay for equal work.
Few legal reforms on the labour market were approved
in recent years. Generally, labour legislation has some Kenya has a higher out-migration than in-migration. The
flaws in terms of the international standards on the right country’s migrant workers often reach the Middle East,
to organise, the right to collective bargaining, and the mostly as domestic workers. The government has taken
right to strike. Besides, labour regulations and policies are actions to protect Kenyan workers in the Gulf States. The
not fully implemented in the formal sector on government country hosts some of Africa’s largest refugee camps
and company levels. Several reforms are put on the inhabited mostly by South-Sudanese and Somalis, which
table, e.g. wage regulations, youth employment, represent 6.4% of the population. Refugees have limited
breastfeeding rights at work, and strike deregulations. opportunities for economic inclusion due to insufficient
legislation to allow free movement, education, and
Central tripartite structures are working, but frequently employment.
reacting slowly. For instance, the Employment and Labour
Relations Court (ELRC) has an insufficient number of judges The education system demonstrates high enrolment in
which causing a serious backlog of cases. Decisions often school on all levels, including vocational training, in
lack enforcement, just as many employers do not comply comparison to the sub-Saharan Africa average. Dropout
with the court’s reinstatement orders. rates are high in the education system. It is signalled in the
high child labourer rate of 26%. Insufficient formal job
In recent years, an increase of casual contracts and creation turns many youths discouraged that is echoed in
outsourcing in the formal sector has prompted massive the high NEET rate of 29% (i.e. neither in education,
lay-offs. It triggered rising disputes along with non- employment or training).
compliance of collective bargaining and breakdown of
Collective Bargaining Agreements (CBAs) on company The country is making progress in consolidating its national
level. Between 2017 and 2018, several unsatisfactory social protection system. Still, just around one out of ten
collective bargaining triggered unrest and strike actions. (10%) of the population is covered by at least one social
An upsurge in systematic violation of labour rights is protection benefit while one out of four (25%) above
registered. General awareness of the need to go back to retirement age receives a pension. No specific protection
constructive social dialogue to improve industrial relations directly addressing unemployment benefits is available.
amongst workers and employers is in progress in some The low coverage of social protection mirrors the
sectors. extensive vulnerable employment conditions present in
Kenya.
There is emerging employment intensity in the agricultural
sector based on a boom in economic output that Disturbing industrial relations ambience in recent years
represents as the primary driver of growth for the has challenged trade unions’ affiliation of organising
economy. In contrast, low-slung employment intensity is workers: the consequence has been reflected in a flat
present in the industry and service sectors, especially in growth in trade union recruitment. Trade union density of
the manufacturing industry. Job creation in the formal total employment was 15% in 2018, which remained
sector has not followed the fast-growing young significantly higher than in other Eastern Africa countries.
Page ii
The two tables below provide an overview of what is from the DTDA Sub-Regional Office and partners
happening in the labour market. The first table on status interlinked to data collection.
of key labour market indicators in the framework of the
Decent Work Agenda (DWA) in Kenya is based on key The second table on key Sustainable Development Goals
indicators that are followed by DTDA in collaboration in labour market related issues (next page) presents an
with Central Organization of Trade Unions (COTU (K)). overview of the SDGs indicators’ current value and
‘Yes’ and ‘No’ measurements are based on assessments targets in relation to labour market issues.
Status of key labour market indicators in the framework of the Decent Work Agenda (DWA) in Kenya, 2018
Creating decent jobs
Yes. Legal reforms to improve working conditions for breastfeeding mothers,
Policy reforms addressing creation of decent
increase youth employment, as well as universal health care as part of the Big Four
employment
Government Agenda
ILO standard setting on improvement of status of Yes. Tri-partite National Informal Employment Forum addresses policy issues and
workers from the informal economy the status of informal employment.
Guaranteeing rights at work

Growth in partner trade union members from year
97 %
2014 to 2018 (%) (COTU)
Violations of trade union rights Ranking 4 out of 5 (5+ is the worst)*
Yes. Employment amendment act (No. 14) from 2017 gives women the option to
Labour legislation is improved according to ILO
extend their three months paid maternity leave with three additional months,
standards
unpaid.
Partner organisations with minimum 30% women
24 %
representation in decision-making bodies
Extending social protection
Health social protection coverage as % of total
16%**
population in partner countries
Workers from the informal economy have access
Yes, 21 % are covered by National Hospital Insurance Fund (NHIF)
to national social security schemes
Promoting social dialogue
Trade union density of total employment (%) 15 %
Cooperation in labour-employer relations Ranking 91 out of 141 (1 is best) ***
Number of Collective Bargaining Agreements
386 **** / 313*****
(CBAs), 2017
Workers’ coverage of Collective Bargaining
5%
Agreements to employees
Tri-partite Alternative Disputes handling mechanisms are in the process of being
Bi-/tripartite agreements concluded established with the aim of resolving labour disputes and reduce the existing case
backlog and other delays.
* This is interpreted as systematic violations of rights. Countries with a rating of 4 are interpreted as governments and/or companies engaging in serious
efforts to reduce the collective voice of workers and put fundamental labour rights under threat (Source: ITUC, Global Rights Index).
** Members of National Hospital Insurance Fund (NHIF)
*** This indicator is based on data from the Global Competitiveness Index that represents employers’ opinion from surveys (Source: World Economic Forum)
**** SRO Data-collection tool, 2018
***** Economic Survey 2019
Sources: ILO, DTDA Sub-Regional Office data collection tool 2018, Economic Survey 2019, and DTDA’s Analytical Unit own calculations.
Page iii
Status of key Sustainable Development Goals in labour market related issues in Kenya
Indicators Value Year SDG Targets
1.1.1: Working poverty rate (percentage of By 2030, eradicate extreme poverty for all people
employed living below US$1.90 PPP) 30 % 2019 everywhere, currently measured as people living on less than
$1.25 a day
Implement nationally appropriate social protection systems and
1.3.1 Proportion of population covered by
10 % * 2016 measures for all, including floors, and by 2030 achieve
social protection floors/systems
substantial coverage of the poor and the vulnerable
Ensure women’s full and effective participation and equal
5.5.2: Female share of employment in
- - opportunities for leadership at all levels of decision-making in
managerial positions
political, economic and public life
Sustain per capita economic growth in accordance with
8.1.1: Annual growth rate of real GDP per national circumstances and, in particular, at least 7 per
2.3 % 2017
capita cent gross domestic product growth per annum in the least
developed countries
Achieve higher levels of economic productivity through
8.2.1: Annual growth rate of real GDP per diversification, technological upgrading and innovation
3% 2019
employed person through a focus on high-value added and labour-intensive
sectors
8.3.1: Proportion of informal employment in Promote development-oriented policies that support
84 % 2018
non-agriculture employment productive activities, decent job creation,
8.3.1: Women - - entrepreneurship, creativity and innovation, and
encourage the formalisation and growth of micro-, small-
8.3.1: Men - - and medium-sized enterprises, through access to financial
services
8.5.1: Average hourly earnings of women and
- -
men employees
8.5.2: Unemployment rate (Total) 9.3 %** 2019 By 2030, achieve full and productive employment and
8.5.2: Women, 15+ 9.2 %** 2019 decent work for all women and men, including young
people and persons with disabilities, and equal pay for
8.5.2: Women, 15-24 years 18 %** 2019
work of equal value
8.5.2: Men, 15+ 9.4 %** 2019
8.5.2: Men, 15-24 years 18 %** 2019
8.6.1: Proportion of youth (15-24 years) not By 2020, substantially reduce the proportion of youth not
- -
in education, employment or training) in employment, education or training
8.7.1: Proportion and number of children Take immediate and effective measures to eradicate
aged 5-17 years engaged in child labour 26 % 2016 forced labour, end modern slavery and human trafficking
(Total) and secure the prohibition and elimination of the worst
8.7.1: Girls 27 % 2016 forms of child labour, including recruitment and use of
child soldiers, and by 2025, end child labour in all its
8.7.1: Boys 25 % 2016 forms
8.8.1: Frequency rates of fatal and non-fatal
- -
occupational injuries Protect labour rights and promote safe and secure working
8.8.2: Level of national compliance with environments for all workers, including migrant workers, in
labour rights (freedom of association and - - particular women migrants, and those in precarious employment
collective bargaining)
Promote inclusive and sustainable industrialisation and, by
9.2.2: Manufacturing employment as a 2030, significantly raise industry’s share of employment and
11% *** 2018
proportion of total employment gross domestic product, in line with national circumstances, and
double its share in least developed countries
10.4.1: Labour income share as a percent of Adopt policies, especially fiscal, wage and social protection
- -
GDP policies, and progressively achieve greater equality
* Value of population covered by at least one social protection benefit (Contingency), see also Table 17. ** ILO estimations. *** Relative to wage
employment.
Source: United Nations, Sustainable Development Goals, Knowledge Platform, Kenya National Bureau of Statistics, Economic Survey 2019, UNICEF 2016
and ILO, Key Indicators of the Labour Market (KILM)
Page iv
COUNTRY MAP
Source: CIA, The World Factbook
Page v
TABLE OF CONTENTS
PREFACE...................................................................................................................................................................... i
Executive SummarY .................................................................................................................................................... ii
Status of key labour market indicators in the framework of the Decent Work Agenda (DWA) in Kenya, 2018 ..............iii
Status of key Sustainable Development Goals in labour market related issues in Kenya .......................................................iv
Country Map ............................................................................................................................................................... v
Trade Unions .............................................................................................................................................................. 1
Employers’ Organisations .......................................................................................................................................... 2
Government ................................................................................................................................................................ 3
Central Tripartite Structures ......................................................................................................................................... 4
Social Dialogue ......................................................................................................................................................................................... 6
National Labour Legislation ........................................................................................................................................ 7
Observations on the labour legislation ................................................................................................................................................ 9
Ratified ILO Conventions .......................................................................................................................................................................10
Trade Agreements ..................................................................................................................................................................................10
Trade Union Rights Violations .................................................................................................................................. 11
Working Conditions .................................................................................................................................................. 12
Workforce ................................................................................................................................................................. 13
Unemployment and underemployment ...............................................................................................................................................15
Sectoral Employment ..............................................................................................................................................................................16
Migration ..................................................................................................................................................................................................17
Informal Economy ....................................................................................................................................................................................18
Child Labour .............................................................................................................................................................................................19
Gender ......................................................................................................................................................................................................20
Youth ..........................................................................................................................................................................................................21
Education .................................................................................................................................................................. 22
Vocational training .................................................................................................................................................................................23
Social Protection ....................................................................................................................................................... 24
Economic Performance ............................................................................................................................................. 25
Export Processing Zones (EPZ) ..............................................................................................................................................................27
Appendix: Additional Data ....................................................................................................................................... 29
Table 20: Registered Trade Union membership in Kenya, 2018 ................................................................................................29
Table 21: List of approved labour related legislations in Kenya, 2014-2018 .......................................................................30
Table 22: Ratified ILO Conventions in Kenya, 2018 ......................................................................................................................31
Table 23: Ease of Doing Business in Kenya, 2019 ..........................................................................................................................32
Reference…………………………………………………………………………………………………………………33
Page vi
Tables
Table 1: Status of trade unions in Kenya, 2018 ..................................................................................................................................... 1
Table 2: Trade Union Centres members and affiliated unions in Kenya, 2018 .............................................................................. 1
Table 3: Employers’ view of the labour market efficiency in Kenya, 2019 ..................................................................................... 3
Table 4: Status of Collective Bargaining Agreements (CBAs) in Kenya, 2018 ................................................................................ 6
Table 5: Monthly salary and minimum wage in Kenya, Ksh, 2013-2018 ......................................................................................12
Table 6: Status of Working Conditions in Kenya ..................................................................................................................................12
Table 7: Estimations of employment-to-population ratio in Kenya and Eastern Africa, Age and Sex distribution, 2019 ...13
Table 8: Total and wage employment in Kenya, 15-64 age, 2014-2018 ...................................................................................14
Table 9: Wage Employment by Industry in Kenya, 2014-2018 ......................................................................................................14
Table 10: Unemployment and underemployment in Kenya and Eastern Africa average, 2018 ..............................................15
Table 11: Wage Employment by Industry in Kenya, estimations, 2018 .........................................................................................16
Table 12: GDP share by sector (%) and GDP growth (p.p.), estimations, 2014-2018...............................................................17
Table 13: Status of Migration in Kenya ..................................................................................................................................................17
Table 14: Total and informal employment in Kenya, 2014-2018 ...................................................................................................19
Table 15: Working Children, proportion of all children ages 5-17 ................................................................................................20
Table 16: Workforce key indicators gender gaps estimations in Kenya, 2019 ...........................................................................20
Table 17: Benefits schemes, Kenya, %, 2016 .......................................................................................................................................24
Table 18: Key economic data in Kenya, 2018 .....................................................................................................................................26
Table 19: Estimation and projection of employment by economic class in Kenya, PPP, %, 2000-2020 .................................27
Table 20: Registered Trade Union membership in Kenya, 2018......................................................................................................29
Table 21: List of approved labour related legislations in Kenya, 2014-2018.............................................................................30
Table 22: Ratified ILO Conventions in Kenya, 2018 ...........................................................................................................................31
Table 23: Ease of Doing Business in Kenya, 2019 ...............................................................................................................................32
Figures
Figure 1: Trade union membership and total employment trends, 2012-2018 .............................................................................. 1
Figure 2: Total status of CBAs and its coverage of waged workers in Kenya, 2010-2018 ........................................................ 6
Figure 3: Population pyramid based on Age-Sex structure of the population in Kenya .............................................................13
Figure 4: Estimations and projections of status of employment in Kenya, %, 2000-2020..........................................................14
Figure 5: Estimations and projections of labour productivity trend, 2000-2020 ..........................................................................15
Figure 6: Unemployment trend in Kenya and Eastern Africa (EA), Total and Youth, %, 2009-2019 ......................................15
Figure 7: Estimations and projections of employment by aggregate sector in Kenya, 2005-2020 .........................................16
Figure 8: Aggregate sector share in Kenya, % of GDP, 2010-2018 .............................................................................................17
Figure 9: Net migration trend in Kenya, 1993-2017 ..........................................................................................................................18
Figure 10: Women participation in employment, top management and ownership in the Kenya, %, 2018 ..........................21
Figure 11: Enrolment in Primary, Secondary and Tertiary schools, Male and Female, Kenya and sub-Saharan Africa
(SSA), %, 2000-2016 .................................................................................................................................................................................23
Figure 12: Pupils in technical universities, polytechnics and vocational colleges, 2014-2018 ...................................................24
Figure 13: Out-of-pocket expenditure (% of current health expenditure), %, 2009-2016.......................................................25
Figure 14: GDP per capita growth and inflation rate, Kenya and the sub-Saharan Africa (SSA), %, 2009-2018 ............26
Page vii
TRADE UNIONS (see also the section: Trade Union Rights Violations).2 In
2018 and 2019, trade unions and private/public
Two federations, the dominating national Central
employers intensified in dialogue that is more
Organization of Trade Unions - Kenya (COTU (K) and
constructive.
the relatively new Trade Union Congress of Kenya
(TUC-Ke), are hosting 48 trade unions; and additionally
During 2014 and 2016, the trade union density grew
9 are independent organisations (see also Appendix
rapidly. A drop of 2.3 percentage points in trade union
Table 20). Around 2.6 million workers were members of
density from 2016 to 2017 illustrates the complication
trade unions in 2018. The trade union density was
of the industrial relations in recent years; stayed on a
estimated at 15% of the total employment in 2018,
flat growth from 2017 to 2018. The tempo of
which is relatively high in comparison to the
employment growth also superseded the trade union
neighbouring East African countries with trade union
membership progress that widening a gap (see Figure
density rates from 2% to 6%.1 Table 1 shows the status
1).
of trade unions in Kenya.
Figure 1: Trade union membership and total employment
Table 1: Status of trade unions in Kenya, 2018 trends, 2012-2018
20000000 18%
Number of trade unions 57 17%
18000000 16%
Members of trade unions 2,591,570 16000000
15% 15%
14%
Women member share of waged 14000000
44 % 12% 12%
workers 11%
12000000
Growth in membership, 2014-2018 70 % 10%
10000000
8%
Trade union density (total employment) 15 % 8000000
6%
Members of affiliated trade unions 6000000
11,540
from the informal economy 4000000 4%
Source: COTU, DTDA, Kenya National Bureau of Statistics, Economic
2000000 2%
Survey 2019
0 0%
2012 2014 2016 2017 2018
Most trade unions are sector-based with a few general
Trade union members (Left)
unions that cover several industries. Civil servants are Total employment (Left)
also active members of worker organisations and Ratio of trade union members to labour force (%) (Right)
Source: COTU (K) and LO/FTF Council
exercise the freedom of association rights.
COTU (K) is the largest organisation covering around
Although the country has one of the most institutionalised
97% of total trade union membership (Table 2). The
industrial relations in Africa, lay-offs and rising disputes
organisation registered a fast growth in 2014/15, but
in recent years, along with non-compliance of collective
it stalled since 2016 (see more below). In 2019, COTU
agreements, affected negatively the labour market. It is
brought on board the Kenyan National Union of
an impact of increasing outsourcing and casualisation in
Teachers (KNUT) (see more ahead).
the formal sector and it has challenged the affiliation of
trade union members. For example, the misuse by Table 2: Trade Union Centres members and affiliated
employers of internships and other forms of transitional unions in Kenya, 2018
employment, but not hiring employees after the Growth in
Total Women
internship ends, has tested the trade unions’ ability to Members share, %
membership,
organise and bargain collectively for better working 2014-2018
COTU (K) 2,470,329 44 % 97 %
conditions. TUC-Ke 111,676 37 % -57 %
Independent 9,565 98 % 21 %
A wide range of major strike actions in education, Total 2,591,570 43 % 70 %
health and transport sectors exemplifies the difficult Source: COTU and DTDA research.
period of the industrial relations since 2016. The events
were related to disagreement between workers their Central Organisation of Trade Unions (COTU (K))
employers about Collective Bargaining Agreements COTU (K) was formed in 1965 and is the largest trade
(CBAs) employment terms. In 2017, labour strikes cost union federation in Kenya with 45 affiliated trade
Ksh 5.2bn (US$52 million) in government spending to unions, and is considered as one of the strongest in
stop the strikes, which was the historically highest cost Africa. The organisation is a well-established political
actor on general labour market issues. The role of
Page 1
COTU (K) has concentrated on negotiating relation to a legal turmoil of a collective bargaining
improvements in relation to salaries, workplace safety, agreement (see also in the sub-section: Social Dialogue).
fringe benefits and generally better terms and The KNUT’s Union Subscription Fee is collected from
conditions of employment for the workers represented every member of the union at the rate of 2% of the
by COTU (K) in the formal sector. Most of the affiliates basic salary of every member per month (e.g. a senior
of COTU (K) are engaged in collective bargaining master is deducted Ksh 1,200 (US$12) per month for
processes. membership).
Among the registered 2.5 million members in 2018, Trade Union Congress of Kenya (TUC-Ke)
44% were women. During the national congress of Federation of Public Service Trade Unions of Kenya
COTU (K) in 2016, three women General Secretaries (PUSETU-K) was launched in November 2012. It was re-
were elected together with two women National named as Trade Union Congress of Kenya (TUC-Ke) in
Treasurers and over 500 representatives at branch and 2014. Four trade unions were affiliated with TUC-Ke in
shop floor levels. In addition, COTU (K) amended its 2018 and representing 111,676 members, which
constitution to provide positions for women and youth included KNUT (Appendix Table 20). In the beginning,
committee chairpersons into the Board. The COTU (K) the organisation was dominated by members from the
congress also adopted its first gender policy. public sector and later opened up for private sector
unions.
COTU is affiliated to the International Trade Union
Confederation (ITUC), the Organization of African
Trade Union Unity (OATUU), the Trade Union EMPLOYERS’ ORGANISATIONS
Federation of Eastern Africa (TUFEA), and the East
Employers are estimated to make up 8.1% of the total
African Trade Union Confederation (EATUC).
employment in Kenya in 2019, which is 4.8 percentage
point higher than the African average (3.2%) (see also
The organisation’s trade unions range from large unions
ahead in Figure 4). This high share of employers is an
such as the Kenya Plantation and Agricultural Workers
impact of the flourishing entrepreneurship movement in
Union (KPAWU) with 740,000 members to small unions
the country.
such as Kenya Union of Voluntary and Charitable
Organization with 35 members (See more in Appendix
The Global Competitiveness Index provides the
Table 20).
employers’ view on several aspects. In particular, pillar
8 looks at the labour market and measures its efficiency
COTU (K) represents affiliated unions and informal
in a given country. Information is based on surveys
economy associations in tri/bi-partite bodies such as the
among employers and other statistical data. In 2019,
National Social Security Fund (NSSF), the National
Kenyan employers considered the labour market to be
Labour Board, and the Wage Councils. During 2016,
moderately effective, placed in the upper-middle
COTU (K) sensitised its membership on the ILO
segment, ranking the country as number 79 out of 141
Recommendation 204 on the transition from the informal
countries (1 is the best).
to the formal economy.
Out of the 12 labour market efficiency indicators, the
KNUT, formed in 1957, joined COTU (K) as co-founder
highest scorings are in labour tax rate (8), internal
in 1965, but was in 1969 forced out by the government
labour mobility (21), and hiring and firing practices
as the government decided that public employees could
(44), which indicate that employers in Kenya in general
not belong to COTU (K).3 Since then, KNUT was not
are satisfied with the labour taxation rate and find it
affiliated with any union federation until 2014 when
relatively easy to fire and mobilise labour. Kenya’s
KNUT became a part TUC-Ke.4 Because of disputes
lowest score is in ratio of wage and salaried women
over the leadership of TUC-Ke, KNUT was suspended
workers to men workers (113), which indicating a
from TUC-Ke in 2018. KNUT registered 83,500
substantial gender gap in the labour market (see more
members in 2018. In January 2019, KNUT was re-
in the sub-section: Gender). The cooperation in labour-
affiliated to COTU (K). According to data from COTU
employer relations rank is the second lowest (91) and
(K), KNUT’s membership was 300,000 in July 2019,
this indicator fell down by 19 steps from the last
which suggests a high influx of organised teachers. As
ranking (72) from 2018, which suggest a deterioration
just indicated, the industrial relations between KNUT
in social dialogue in Kenya (see more details in Table
and the government deteriorated in recent years in
3).
Page 2
Table 3: Employers’ view of the labour market efficiency in In practice, FKE is the bi-partite social partner to COTU.
Kenya, 2019 It represents employers in the most central bi-/tripartite
Indicator Rank *
organs, and deals and provides hearing inputs on
Total 79
labour policies and legislation. Among others, FKE is
Redundancy costs (weeks of salary) 69
Hiring and firing practices 44 incorporated in the Government's Employment Policy
Cooperation in labour-employer relations 91 and correspondent strategies alongside COTU.7 FKE
Flexibility of wage determination 69 furthermore leads negotiations of Collective Bargaining
Active Labour policies 84 Agreements (CBAs) on behalf of its member enterprises
Worker’s rights 89 at company, industrial and/or sectoral level.
Ease of hiring foreign labour 81
Internal labour mobility 21 FKE expresses concerns about Kenya’s competitiveness
Reliance on professional management 57
in doing business and especially the low job creation in
Pay and productivity 50
the formal sector, the high growing youth population
Ratio of wage and salaried women workers
113 and wage increases. Similarly, concerns have been
to men workers
Labour tax rate % 8 raised about the lacking infrastructure repair as well as
* Rank from 1 to 141 (1 is best ranking). the out-migration of workers (see also the sub-section:
Source: The Global Competitiveness report 2019- Pillar 8 Migration).
Federation of Kenya Employers (FKE)5 FKE has been involved in programs such as capacity
FKE was established in 1959 and celebrates its 60th building, developing small scale enterprise, informal
anniversary in 2019. As Kenya’s largest and leading economy, child labour prevention, developing micro
employers’ organisation, FKE is active in the public finance, tackling youth unemployment, HIV/AIDS at the
debate lobbying for corporate organisations. Its overall workplace and expanding social protection.
objectives are to maintain good industrial relations,
promote sound management practices and fair Since 1991, FKE has been involved with employers in
employment conditions. Maintaining industrial relations the informal economy by, for example, providing
are the core function of FKE. It also provides business institutional services to businesses.8 In 2018, the
development assistance to members (advocacy, federation decried the size of the informal economy
industrial relations, employment laws and related compared to the formal one and encouraged the
value-add services through management, consultancy government to initiate programmes which will protect
and training). existing jobs in the formal sector (see also the sub-
section: Informal Economy).9 FKE has also been vocal in
FKE headquarters are in Nairobi, while its three criticising the President for increasing the minimum wage
branches are located in the Coast, the Rift Valley and by 5% in 2018.10
the Western Regions. It is independent of both
government and political parties. In a report published by FKE in 2018, the federation
criticised universities for not sufficiently preparing
Membership is open to all organisations in the public graduates for the labour market, claiming that a large
and private sectors except the civil service and the amount of degree-holders take up positions meant for
disciplined forces. Its membership comprises of at least diploma and certificate holders.11 Meanwhile, FKE
4,000 Kenyan businesses both direct and indirectly states that diploma and certificate holders are
through 15 associations that cuts across all sectors of the increasingly being excluded from the labour market. In
economy. The members constitute both small and large the report, FKE advocates for the universities to teach
employers. In comparison, Kenya has an estimated more hands-on technical skill sets and focus less on
35,000 large or medium sized enterprises, constituting academic qualifications (see also the section:
2% of Kenya’s 1.7 million enterprises. Education).12
The organisation is registered on United Nation’s

Global Compact and collaborating with ILO. FKE is a GOVERNMENT
member of International Organization of Employers
The government is the largest employer in the formal
(IOE) and is represented by Business Africa.6
sector, with an estimated 737,100 government workers
in 2016 (28% of total formal employment).
Page 3
Ministry of East African Community, Labour and Social Director of Employment, Director of Micro and Small
Protection was formed of re-organisation of the Enterprises Authority (MSEA), Director of Occupational
government in 2013. The Ministry combined the former Safety and Health (OSH), Director of Industrial Training,
Ministry of Labour and part of the former Ministry of Registrar of Employment and Labour Relations Court
Gender, Children and Social Development. The two and the Registrar of Trade Unions.15 The Labour Board
former ministries have existed in various forms since advises the Minister of Labour on labour legislation and
independence in 1963. other labour matters. The Minister of Labour consults the
board, when various sensitive changes to the labour
Presidential Circular No. 2 of 2013 constituted the re- laws are made. NLB is composed of appointees of the
organised government, placed the following Minister in charge of labour.
departments under the ministry: Department of Labour,
Office of the Registrar of Trade Unions, Directorate of Wages Councils
Occupational Safety and Health Services (DOSHS), Kenya has seventeen Wages Councils out of which only
Department of Children Services, Department of Social two are currently operational: the General Wages
Development, Social Protection Secretariat, National Council and the Agricultural Wages Council.16 General
Employment Bureau (NEB), Productivity Centre of Kenya Wages Council covers all non-agricultural sectors, while
(PCK) and the Directorate of National Human Resource the Agricultural Wages Council serves agricultural
Planning and Development. Others are the Semi- workers. The councils are composed by appointees of
Autonomous Government Agencies (SAGAs) namely the the minister and consist of three representatives from
National Industrial Training Authority (NITA), National each of the tripartite parties plus three independent
Council for Persons with Disability (NCPWD) and members, usually a labour market expert or industry
National Council for Children Services. The only expert. Councils set statutory minimum wages and
Autonomous Government Agency (AGA) under the working conditions in different occupations, monitor the
Ministry’s mandate is the National Social Security Fund enforcement of minimum standards requirements and
(NSSF). advices the Minister of Labour on matters of minimum
wages and conditions of employment in the formal
Ministry of East African Community (EAC), Labour and sector and informal economy.
Social Protection typically operates with disputes to
mediation, fact-finding, or binding arbitration at the Critics argue that wage councils and several tripartite
Employment and Labour Relations Court. The committees have only convened on a few occasions and
administration of the employment and labour relations that the majority of the councils only have updated
court and the labour inspection have been criticised by statutory wages on an ad-hoc basis, which are often
social partners for reacting slowly on labour issues and outdated or not active as mentioned.17
handling of day-to-day business.
Productivity Centre of Kenya (PCK)
PCK is a tripartite institution that works to enhance the
CENTRAL TRIPARTITE STRUCTURES13 nation’s competitiveness by improving productivity,
sustainable growth and encouraging better working
Tripartism is a collaboration based on social dialogue
relationship between labour and employer. The centre
between employer, labour, and state affiliations within
was founded in 2002 and is a public agency under the
the economy. Each part is supposed to act as a social
Ministry of Labour. It gives wage guidelines for various
partner to create economic policy through cooperation,
sectors based on productivity, inflation and cost of living
consultation, negotiation, and compromise. The Labour
indices.18 PCK is criticised for not being institutional
Institutions Act (2007) in the constitution (2010)
strong enough to undertake its mandate.19
establishes and provides the functions for the labour
institutions.14 The leading institutions are:
In August 2016, Kenya initiated to set up a National
Productivity Council in Nairobi to monitor the
National Labour Board (NLB)
implementation of programmes aimed at improving
NLB is a tripartite institution and composed by
labour issues and standardisation. The change follows
appointees of the minister in charge of labour: three
minor amendments to the Industrial Court Act of 2011
representatives from trade unions, including the
to align it to an article of the Constitution.
Secretary General of COTU (K); three representatives
from employer’s organisations, including the Executive
Director of FKE; at least two independent members;
Page 4
National Economic and Social Council (NESC) The government continues to strengthen the labour
NESC was established in 2004 as an advisory body to dispute system. Critics argue that decisions of the ELRC
the government on policies to fast track the socio- are not enforced consistently. Many employers do not
economic transformation of the country, promote comply with the court’s reinstatement orders, while some
economic growth, social equity and employment workers accept payment instead of reinstatement. The
creation. The council consists of 49 members from the government established the court to provide for a quick
government, private sector, civil society and solution of labour disputes, but the enforcement
academia.20 The institution has contributed indirectly to mechanisms of the Court remain weak and its cases
social dialogue in the preparation of strategies, backlog to 2007, which raises concerns about its
recommendations and policies for the government. efficacy.23
NESC has through taskforces, sub-committees, working
groups and consultative forums supported a more If parties cannot reach an agreement, they must report
favourable environment for engagements between the labour dispute to the Minister of Labour who shall
employees, employers, government and new entrants in appoint a conciliator within 21 days. The conciliator shall
social dialogue. attempt to resolve the dispute within 30 days, and only
after that can a lawful strike be called. A party can also
NESC developed Kenya’s national long-term refer the dispute to the court if conciliation fails, but not
development plan during 2006-2008: the Kenya Vision where a union may call a protected strike, i.e. a strike
2030 aiming to transform the country into a “newly that concerns employment matters or the recognition of a
industrialising, upper middle-income country providing a trade union.
high quality of life to all its citizens by 2030 in a clean
and secure environment.”21 In 2018/19, NESC are, In recent years, ELRC has received an increased amount
among other things, to improve the socio-economic of cases. In June 2017, 13,723 cases were pending,
outcome in Northern Kenya through electronic tagging which is an increase from 11,309 cases at the end of
of cattle, a green street lightning project, addressing 2015-2016.24 It has also been noted how the
gaps between practise and the constitution and government and employers have inconsistently or not at
studying public awareness of national values. all complied with decisions of ELRC. With reference to
the latest data available (2016-2017), 6,082 cases
Employment and Labour Relations Court (ELRC) were filed, while the number of cases settled were
Employment and Labour Relations Court settles 3,668 (60%).
employment and industrial relations disputes and
secures good labour relations in Kenya.22 Apart from Inefficiency is a general critique of the Kenyan court
aligning the Industrial Court to the Kenyan constitution system: case backlog stood at 315,378 in 2016/2017,
from 2010, and re-naming to ELRC, it has also been down from 344,659 cases in the previous financial
decentralised to 7 out of 47 counties, so far. Twelve year. Out of these, 52,352 cases have been in the court
judges have been appointed to have jurisdiction to system for more than 10 years.25 Deadlock is related to
handle employment and labour matters. COTU (K) is a low budget of one percent of the national budget to
engaged with ensuring a more efficient ELRC by the Judiciary, which is well below the international
training paralegals for presentation of cases before the recommended standard of 2.5 percent.
court and familiarising the court’s functions to trade
unions as well as to employers. The chief justice designates all county courts presided
over by senior resident magistrates and higher-ranking
The function of the court has been faced with a number judges as special courts to hear employment and labour
of challenges: First, disagreements as to whether cases. It has been challenging to provide adequate
procedures for the court cases should be aligned with facilities outside Nairobi, but observers report the
procedures in ordinary courts and/or if only employers possibility to submit labour-related cases throughout the
and trade unions have standing before the court. country.
Second, the court calendar for 2018 was already full in
March producing a serious backlog of cases (personal In 2016, the judiciary finalised the Employment and
case filing). Third, aggrieved people’s bypass Labour Relations (Procedure) Rules. Important changes
reconciliation stages thus overwhelming litigation in are the provision for parties to access file pleadings
court; Fourthly, critically low number of judges. directly in electronic form, new pre-trial procedures,
alternative dispute resolutions, and a 30-day time limit
Page 5
for the court to submit a report on disagreements over Kenyan Constitution recognises the right of every trade
collective bargaining agreements filed. Out of 6,253 union to bargain collectively. However, it is not clear
filed cases on employee dismissals, ELRC ruled that whether this right can be enjoyed by all workers, e.g.
employers had to pay for their actions in 4,377 (70%) members of Prison Department, National Youth Service,
of the cases.26 teachers under the Teachers' Service Commission, and
workers from the public sector (see also the section:
In order to hasten the dispute resolution processes, National Labour Legislation).27
COTU and FKE has jointly proposed to the Ministry of
Labour a number of alternative avenues outside the Kenyan has institutionalised collective bargaining as key
court system. The joint guideline on settling labour social dialogue mechanisms. Collective Bargaining
relations and employment disputes through alternative Agreement (CBA) is by law defined by written
dispute resolution mechanisms is currently awaiting the agreements on terms and conditions of employment
Cabinet Secretary for endorsement to become law. between a trade union and an employer or a group of
employers or employers’ organisation.28 The latest
Other bi-/tripartite organs national Economic Survey registered (provisional) 313
 Micro and Small Enterprises Authority CBAs in the Industrial Court in 2018 compared to 298
 Kenyan Electricity Board CBAs in 2017 indicating decreased industrial disputes
 National Industrial Training Council (Table 4). However, the organised workers covered by
 National AIDS Control Council CBAs have since 2017 dropped 10% down to 85,000
 National Social Security Fund (NSSF) workers (1.2% of total employees) in 2018. Other data
suggest the amount of CBAs registered in the Industrial
 National Health Insurance Fund (NHIF)
Court in 2018 were 386.29
 National Hospital Insurance Fund
 National Advisory Committee on Occupational
Table 4: Status of Collective Bargaining Agreements (CBAs)
Health and Safety in Kenya, 2018
 National Tripartite Consultative Committee
Number of CBAs (2018) 313
 Kenyan anti-corruption Board
Organised Workers covered by CBAs 84,739
 Teacher Service Commission Average basic wage for workers covered by
US$408
 Educational Task force CBAs
Share of employees covered by CBAs 1.2 %
Source: Kenya National Bureau of Statistics, Economic Survey 2019 and
own calculations on share of employees covered by CBAs based on data
Social Dialogue from ILOSTAT.
In recent years, social partners have intensified their bi-
partite negotiations and consultations on labour issues Figure 2 shows fluctuating in numbers of CBAs during
relating to dispute handling, collective bargaining, 2010s, but stayed steadily after 2015. It is noteworthy
negotiations and consultations on issues ranging from to mention that the low CBA coverage among organised
collective bargaining and decent work, alternative workers has been between 1% to 2% in the 2010s with
dispute resolution, taxation, social protection, TVET and the exception of 2013 among community and social
skills development, the Big Four Agenda, implementing services and in 2016 in the education sector.
EAC protocol on free movement of labour to migration.
In addition, increasing consultations have taken place on Figure 2: Total status of CBAs and its coverage of waged
formalising the informal economy to small-medium workers in Kenya, 2010-2018
400 8%
enterprises. Similarly, there has been a noticeable
strengthening of COTU and FKE collaboration to 7%
300 6%
advocate and lobby government on national policy 6%
issues in tripartite boards mentioned above. In 2018,

200 4%
social partners objected to controversial amendments to
existing labour laws effecting social dialogue
100 2% 2%
negatively, e.g. the government proposed to exclude 2%
1% 2% 1%
1% 1%
workers and employers from representation at
0 0%
NSSF/NHIF and future employee contributions to a 2010 2011 2012 2013 2014 2015 2016 2017 2018
Housing Fund. Number of CBA's
Source: Kenya National Bureau of Statistics: Economic Surveys
Page 6
Around 42% of all CBAs are registered in the Similar teachers’ and university strikes in recent years
manufacturing sector that employs 29% of the total illustrated poor industrial relations between unions and
organised workers protected by CBAs in 2018. In this the Ministry of Education, and an inefficient dispute
sector, the number of CBAs remained stable from 2017 resolution mechanism. Especially the social dialogue
to 2018, while the increase in the number of agreements environment deteriorated between KNUT and the
were more pronounced in Wholesale and retail trade, Teachers Service Commission (TSC) in the aftermath of a
Financial and insurance activities and Education. setback when the commission failed to deduct and remit
monthly dues and threatening the union’s finances; and
Coverage of CBA is complicated by the fact that the teachers were required to re-state whether they want
majority of the employment is the informal economy or to remain in the union. It put the current Collective
often in micro- and small enterprises, operating outside Bargaining Agreement (CBA) 2017-2021 between the
regulated industrial relations’ collective agreement partners in crisis in 2019. In August 2019, the court
mechanisms. directed the two parties to consider reviewing the
prevailing schemes of service to align them with the
Legal provisions of collective bargaining continue to CBA structure without breaching the code of regulations
face bottlenecks as employers and the government fail for teachers.
to comply with some of the clauses as laid down in the
CBAs. Latest invasion into the collective bargaining
process was by the Salaries and Remuneration NATIONAL LABOUR LEGISLATION
Commission (SRC) that interfered with negotiation
Kenya’s labour laws comply, for the most part, with
processes by increasing the duration of the CBAs from
internationally recognised standards and conventions,
two to four years as well as imposing several
and the Ministry of EAC, Labour, and Social Protection
restrictions in the overall CBA negotiation processes.30 In
is going through a review of Kenya’s labour laws to
addition, in employment contracts and CBAs, wider
ensure they are consistent with the 2010 constitution.
health issues – e.g. family planning or engaging
employers in providing a full range of contraceptive
Kenya counted in 2019 (May) a sum of 399 approved
services as part of the health insurance – tend to get
labour market-related legislations. According to the
less priority among workers compared to better salary,
International Labour Organization (ILO), very few
leave and transportation provisions.
approved adoptions have been registered in recent
years: 8 in 2016, none in 2017 and 2018 (see more in
Overall, the number of agreements registered an
Appendix Table 21). In 2017, two laws regarding
average monthly basic wage of KSh 41,381 (US$408)
wage regulations and one regarding youth employment
in 2018 and it dropped down by 23% from KSh
were passed. The Breastfeeding Mothers Clauses Bill,
53,394 (US$516) in 2017. On the positive side,
was submitted from the government to the parliament
monthly basic wage is far above the minimum wage
and is still in parliament for debate (2019).31 The latter
scale (see more in the section: Working Conditions).
bill includes setting up of conductive environment and
facilities at the workplace. In addition, the Statute Law
In recent years, however, unsatisfactory and
(Miscellaneous Amendments) Bill (No. 12 of 2018)
controversial collective bargaining triggered into unrest
under Labour Relations Act 2007 was passed in 2018,
and large numbers of strikes from 2017 to 2019 by
regarding rights during industrial action.32 This law is a
doctors, nurses, taxi-drivers, plantation and agricultural
result of a large amount of strikes in Kenya
and university lecturer unions disagreeing with their
experienced in 2017.
employers about CBA employment terms and
implementation. It is demonstrated in deterioration in
According to COTU, oppressive amendments were
industrial peace and social dialogue. Especially, the
attempted to be adopted in 2018 such as: i)
long and nationwide doctor and health-care strike
representatives from COTU-K and FKE were removed
actions in 2018 were characterised by disputes over
from the NSSF Board of Trustees, ii) civil servants need
pay and working conditions and lack of enforcement of
to follow a 21 days’ notice to strike (earlier seven days,
the collective agreement from 2013 between health
and iii) no remittance of union dues by government.33
professionals and the Kenyan government and (see also
Eventually COTU challenged both moves. According to
the section: Trade Union Rights Violations). The strike
representation in the NSSF Board of Trustees, COTU
action was eventually called off in 2017.
took it to court, and eventually both workers
representatives were returned to the board, and the
Page 7
government was to have only one representative out of the informal economy with limited compliance to labour
two.34 COTU lobbied against the 21 day’s strike notice, regulations. The law permits the government to deny
and the amendment were not passed in parliament. workers the right to strike under certain conditions;
members of the military, police, prison guards and the
The status of the central labour market laws is National Youth Service are prohibited to do so.39
summarised below: Sympathy strikes are prohibited.
Constitution35 The Act provides for the right of workers, to form and
The independence constitution of 1963 was replaced in join unions of their choice. It includes those in Export
2010 as it got approved by referendum. The 2010 Processing Zones (EPZs). Any seven or more workers in
constitution enshrines a more democratic system with a an enterprise have the right to form a union by
higher gender balance and the introduction of checks- registering with the trade union registrar. The law also
and-balances with separation of powers between the covers the right of collective bargaining to every trade
executive, legislative, and judiciary.36 The 2010 union, employer’s organisation, and employer.40
constitution includes several labour rights such as the During 2016, tripartite partners produced a simplified
freedom of association, collective bargaining, version of the five sets of Kenya labour laws of 2007
independence of social partners, a fair remuneration, targeting the informal economy workers and created a
reasonable working conditions and the right to strike. It mobile application of the same in order to improve
is unclear if the right to strike under the 2010 accessibility.
constitution covers public sector workers. Tenets of the
Decent Work Agenda are embedded in Chapter Four, Employment Act No. 14. of 2017 was passed as an
also known as the Bill of Rights. amendment to Section 29 to give women the option to
extend their three months paid maternity leave with
In 2018, an amendment proposal to change the date of three more months, unpaid.41 The proposal seeks to
the general elections from August to December failed to align to ILO recommended duration of maternity leave
obtain 2/3 support in the National Assembly. The as in recognition of the World Health Organization
rationale behind the proposal is that August disrupts the (WHO) recommendations for infants to be exclusively
education calendar and more Kenyans are able to vote breastfeed for six months.
in December. Another proposed amendment is pending
before the National Assembly and seeks to give Labour Institutions Act42
constitutional provision on equitable gender Labour Institutions Act of 2007 defines rights to
representation.37 Women continue to be freedom of association, establishment of labour and
underrepresented in elected and appointed offices. employer organisations, member dues, and recognition
of trade unions and CBAs. The Act also establishes and
Another proposal from the so-called Thirdway Alliance regulates the National Labour Board, the Industrial
seeks to reduce red tape by decreasing the members Court, Committee of Inquiry, Labour Administration and
of parliament from 416 to 147, abolish nominated Inspection, Wage Councils and Employment Agencies.
positions in county assemblies and the Senate, reduce Regulation of wages is part of the reformed Labor
the share of revenues for counties, and introduce a Institutions Act from 2014, and the government has
single 7-year term presidency. established basic minimum wages by occupation and
location. In 2016, the minimum wage was not increased,
Employment Act38 but to adjust inflation, the minimum wage was increased
The Employment Act of 2007 regulates various aspects 5% in 2017 in both the general and agricultural sector
of employment, including rights at work, working hours, (see more in the section: Working Conditions).43
sick and maternity leave, discrimination, sexual
harassment, forced and child labour, protection of Labour Relations Act44
wages, termination of employment and dispute The Labour Relations Act from 2007 provides that
settlement procedures. workers, including those in export processing zones
(EPZs), regulates trade unions and employers’
Labour laws and regulations’ framework protects organisations, collective bargaining, strikes and
workers in principle to a considerable degree. The laws lockouts, trade dispute resolution and also recognises
have an insufficient effective reach, though, since Kenya the freedom of association. Collective bargaining must
features a large proportion of workers who operate in be registered with the Employment and Labour
Page 8
Relations Court. Most workers have a legal right to The implementation of NSSF Act 2013 has been heavily
strike after giving a period of notice. Members of disputed by the Government on one side and COTU
military, police and prison guards are prohibited from and FKE on the other side. The Government decided to
striking. Anti-union discrimination is prohibited, and the implement the law at once, not allowing a transition
government does not have a history of retaliating period of five years as otherwise agreed affecting the
against striking workers. The law provides for equal tri-partite relations negatively. A legal row over the
pay for equal work. substantial increase in contributions to workers’ pensions
was negotiated to a roadmap in September 2016 to
The government introduced the Miscellaneous withdraw court cases barring the implementation of a
amendment Bill in 2018 to the Labour Relations Act, to new NSSF Act. The government has tried to remove
protect essential services during industrial action.45 trade union representatives in favour of government
Essential services are defined as a service of which the representatives, but were prevented by high court, as
interruption would probably endanger the life of a mentioned in the beginning of this section.50
person or health of the population or any part of the
population.46 Failing to comply with the Bill can be fined
not exceeding KShs 500,000 (US$4,964) or Observations on the labour legislation
imprisonment for a term not exceeding three months. Labour legislation and inclusive Occupational Health and
COTU has criticised the amendment for killing industrial Safety (OHS) policies and institutions operate with few
action and that relevant stakeholders have not been gaps, but with weak implementation in practice.51
consulted before the proposals were agreed upon. International Trade Union Confederation (ITUC) has some
Sympathy strikes are also prohibited. observations of the legislation in comparison to the
international standards on the right to organise, the
Occupational Health and Safety Act47 right to collective bargaining, and the right to strike:52
Occupational Health and Safety Act of 2007 deals
with safety, health and welfare of persons employed at  Registrar of Trade Unions may refuse to register a
workplaces. It defines the duties of social partners and union if another union already exists which is
sets out occupational, health and safety standards and sufficiently representative of the whole or of a
codes of practices at any given workplace. The Labour substantial proportion of the workers the new union
Ministry’s Directorate of Occupational Health and seeks to represent.
Safety Services have the authority to inspect work sites,
but both numbers of labour inspectors and fines to  The law imposes strict conditions and limitations on
deter violations are insufficient.48 the use and management of trade unions' funds. The
Registrar of Trade Unions also has extensive powers
National Social Security Fund Act49 to audit these funds.
National Social Security Fund (NSSF) Act of 2013
enhances workers’ social protection with two newly-  The law imposes strict conditions and limitations on
established funds: a pension fund and a new provident the use and management of trade unions' funds. The
fund, which was a need to transform NSSF from a Registrar of Trade Unions also has extensive powers
provident fund to a pension scheme. All employers with to audit these funds.
one or more employees are obliged to register with the
new pension fund. Membership in the pension fund is  The Labour Relations Act excludes members of the
mandatory for all employed persons between the ages prison service and the National Youth Service from
of 18 and 60. Previously fixed sum contributions have its scope.
been changed and increased to a 6% + 6%
contribution from employer and employee. Members of
 A union shall be recognised as a bargaining agent if
the old provident fund will be automatically enrolled in
it represents a simple majority of those employees
the pension fund. Membership in the new provident fund
eligible to become union members. This provision
is now voluntary for employees covered by the pension
extends to public sector employers.
fund. During the last five years, NSSF’s contributions
have doubled and active contributors have increased
Migrant workers often lack formal organisation and
by 141% (see also the section: Social Protection).
consequently miss the benefits of collective bargaining.
By the same token, domestic workers are vulnerable to
exclusion from legal protections despite the Domestic
Page 9
Worker’ Act from 2011 and presence of domestic Resilience Recommendation, 2017 (No. 205), adopted
workers’ unions to protect their interests. by the Conference at its 106th Session.55
Ratified ILO Conventions Trade Agreements

Concerning Kenya’s application of international labour Kenya is part of the intergovernmental organisation
standards, a total of 50 ILO Conventions are ratified East African Community (EAC) that includes six countries
(see also Appendix Table 22).53 The Conventions covers in the African Great Lakes region: Burundi, Kenya,
principles and rights at work. Rwanda, Tanzania, Uganda, and South Sudan that
became member in 2016. The EAC commits Kenya to
First, the eight Fundamental Conventions are the most adopt measures to the free movement of labour and
important conventions that cover four fundamental goods from the other five member states. Kenya has
principles and rights at work. The nation has ratified abolished work permit fees for EAC citizens. For
seven of them, except the Forced Labour Convention, migrants from other countries, an entry permit is
1930 (C028). granted if the foreigner is of benefit to Kenya, and an
employer who employs a foreigner must submit a
Second, ILO has designated four Governance report to the authorities.
Conventions that are important to build national
institutions and capacities that serve to promote The EAC free trade agreement from 1999 contains a
employment, i.e. these conventions support a well- labour provision with cooperation on employment and
regulated and well-functioning labour market. The working conditions with an emphasis on gender equality
country has ratified 3 out of 4 of these Governance and discriminatory law and practices.56
Conventions, leaving out the Employment Policy
Convention, 1964 (No. 122). EAC has four pillars: customs union, common market,
monetary union, and political federation. In 2005, the
Third, ILO has furthermore 183 Technical Conventions, EAC established a customs union providing free trade
out of which 83 conventions are “Up-To-Date" and (or zero duty imposed) on services and goods among
actively promoted, i.e. an Up-To-Date Convention is one member states and a common external tariff (CET). 57 In
that is ready for ratification by the Member States 2010, the EAC agreed to establish a common market
and/or one that has been examined by the ILO with free movement for workers, goods, services and
Governing Body and deemed to be still relevant.54 capital. In 2013 the East African Monetary Union
Kenya has to date ratified 12 of the Technical (EAMU) Protocol was signed laying the groundwork for
Conventions. See more on Appendix Table 22. a single currency in the community before 2023.58
Fourth and last pillar is the establishment of a Political
The Committee of Experts on the Application of Federation with among other things common foreign
Conventions and Recommendations (CEACR) is an and security policies. The Political Federation is not yet
independent body composed of 20 legal experts at the realised, and the process has been slow. The actual
national and international levels, charged with implementation of the economic integration has slowed
examining the application of ILO Conventions and down the last few years especially with regards to
Recommendations by ILO member States. The lifting barriers to trade and free movement of labour.
committee’s latest direct request on submission from the Although formal tariffs are increasingly being
Kenyan government was published in 108th International abolished, trade is still challenged by non-tariff
Labour Conference (ILC) session in 2019. It was related to barriers and corruption.
provide information regarding the submission to the
National Assembly of the Protocol of 2014 to the Freedom of association and collective bargaining is
Forced Labour Convention, 1930, and the Forced protected in the EAC common market in the sense that
Labour (Supplementary Measures) Recommendation, an EAC migrant worker has equal rights as a national
2014 (No. 203), adopted by the Conference at its worker.59 The free movement of labour within the EAC
103rd Session, the Transition from the Informal to the opens up questions of how to achieve equal
Formal Economy Recommendation, 2015 (No. 204), opportunities and equal social and labour rights for
adopted by the Conference at its 104th Session, and migrant workers. A worker has the right to social
the Employment and Decent Work for Peace and security benefits and can be accompanied by a spouse
and children.60
Page 10
The free movement of labour is a source of concern in western regions to the Indian Ocean near Tanga in
some of the EAC countries, as the countries’ workforces Tanzania. This route replaces the proposed route from
have differences in productivity and educational level. Uganda to the Kenyan port of Lamu, as Uganda
Kenya is the largest economy in East Africa. The country rejected a Kenyan tariff model.65
is also most open to international workers, and on
average, Kenyan workers are more qualified in terms In recent years, Kenyan–Chinese trade has increased
of education and are better paid than those from other rapidly, and China is now Kenya’s largest trading
EAC countries. 61 partner accounting for 17% of Kenya’s total trade with
the world. China has lent Kenya extensive loans for
EAC is very heterogeneous and each country varies in infrastructure projects. Critics argue that the trade
the degree of hosting EAC migrants; only 16% of between these two countries is uneven, as Kenya buys
Kenya’s migrants come from EAC (see also the sub- more than it sells to China.66 In 2018, Kenyatta banned
section: Migration).62 import of Chinese fish, after a public outcry over
Kenyan fishermen lamenting on how the foreign fish had
The objective of the East African trade union movement flooded the struggling Kenyan fishing industry. China
is to safeguard workers’ interests in the EAC, ensure that subsequently threatened to start a trade war by pulling
ILO standards are upheld and member states’ labour out of funding a standard gauge railway between
policies are harmonised, and the tripartite model is Mombasa and Nairobi.67 Three months later the ban
institutionalised, while the free movement of labour is was lifted.68
promoted. The movement reached observer status in the
EAC in 2009, and along with employers’ organisations
they participate in ministerial summits, sectoral summits, TRADE UNION RIGHTS VIOLATIONS
and other summits that involve labour market issues.
However, in March 2019, the EAC council of Ministers Violations of trade union rights are widespread in
convened in Kigali to review decision-making processes Kenya. The country is ranking 4 out of 5+ (5 is worst)
and efficiency in the community.63 on the Global Rights Index in 2018 and is
characterized by systematic violations of rights, i.e. the
Kenya is furthermore member of the Common Market government and/or companies are engaged in serious
for Eastern and Southern Africa (COMESA) working efforts to crush the voice of workers putting
towards free trade among African states. Kenya has fundamental rights under threat.69 In 2017, Kenya
signed trade agreements with the European Union (EU) ranked 3 and has therefore seen its rankings worsen in
(Economic Partnership Agreement, EPA) and the United 2018. Especially, collective action was systematically
States (African Growth and Opportunity Act, AGOA repressed in Kenya.
and Trade and Investment Framework Agreement,
TITA).64 EPA provides duty-free and quota free access ITUC registered 13 cases on the systematic violations of
to the EU market and an agreement on increasing rights’ in 2015, none in 2016, two in 2017, five in
imports from EU. AGOA allows duty and quota free 2018, and two in 2019 (March).70 Cases in 2019 relate
access for some products. to courts sacking workers for engaging in union activities
and how the Teachers Service Commission of Kenya
Kenya is also part of the 2000 Cotonou Agreement uses court and not social dialogue to avert strike.
between EU and African, Caribbean and Pacific (ACP)
countries, which reaffirms commitment to ILO’s Kenya is ranked as number 41 out of 167 countries on
Fundamental Conventions and includes a labour the Global Slavery Index from 2018. This index
provision on cooperation on various labour and social measures modern slavery, i.e. slavery-like practices
issues. The Cotonou Agreement will expire in 2020, and (such as debt bondage, forced marriage, and sale or
work has begun on the EU side to lay the groundwork exploitation of children), human trafficking and forced
for future partnerships. Kenya is also member of World labour. Around 328,000 people are living in modern
Trade Organization (WTO). Furthermore, Kenya has a slavery in the country. Thus, the country faces challenges
number of bilateral trade agreements, including Gulf in terms of modern slavery, making it more difficult to
Countries (see the sub-section: Migration). reach the global Sustainable Development Goal 8 on
Decent Work targeting effective measures to eradicate
In March 2016, landlocked Uganda agreed to build a all forms of forced labour, modern slavery, human
crude pipeline from Uganda’s oil fields in northern and trafficking, and child labour (see also the SDG Table,
Indicator 8.7.1, on Page iv).
Page 11
The violence of rights among a large number of Kenyan Table 5: Monthly salary and minimum wage in Kenya,
migrant workers in the Middle East is a critical issue, Ksh, 2013-2018
Current Current
primarily working as domestic workers.71 According to
KSh US$
Kenya’s Ministry of Labour, Social Security and
Nominal average wage (2017) 57,008 551
Services, 57,000-100,000 Kenyans travel to the
Middle East every year, most of them going to work as Nominal average wage, deflated in
52,456 507
inflation (2017)
domestic workers.72 In 2012, Kenya banned
Lowest minimum wage, general
employment agencies from recruiting Kenyans for 13,572 128
workers and others, cities (2018)*
domestic work in Kuwait and other countries in the
Highest minimum wage, cashiers and
Middle East after reports of imprisonment, violence, 29,169 288
others, cities (2018)
sexual harassment, confiscation of passports by
Lowest minimum wage, agriculture
employer, starvation and even death of Kenyan 6,416 63
(2018)
migrant workers in the Middle East.73 In 2017 the ban
Highest minimum wage, agriculture
was lifted and bilateral agreements have been made 11,574 114
(2018)
to protect the rights of domestic workers (See the sub- Growth in nominal average wage
section Migration). 25 %
(2013-2017)
Average growth in minimum wages
No cases in the ILO’s Freedom of Association are active 24 %
(2013-2018)
or follow-up cases. Seven cases are closed.74 Source: WageIndicator.org, Minimum Wage - Kenya, and Trading
Economics
Labour inspectors employed by the Ministry of Labour,

WORKING CONDITIONS
Social Security, and Services (MLSSS) monitor working
In Kenya, the minimum wage differs according to sector conditions. Low salaries and lack of resources have
and area. Overall, the minimum wages in urban areas made it difficult for labour inspectors to do their work,
are almost double as high as in rural areas, and the as well as making the inspectors vulnerable to bribes
same goes for skilled workers compared to non-skilled and consequently fines are generally insufficient to
workers. To adjust inflation, the General Wage deter violations.78
(Amendment) Order 2017 increased the minimum wage
with 18%.75 This was a result of consultations between The law puts the normal workweek to 52 hours (60
Wage Councils, employers’ organisations and COTU hours for night workers).79 Agricultural workers are
(K). In 2018, the minimum wage was raised 5%.76 The excluded from the limitations. An employee in the non-
inflation in 2018 dropped to 5% from 8% in 2017, agricultural sector has the right to one rest day per
which reduced slightly the pressure on incomes’ week and 21 days of combined annual and sick leave.
purchasing power. In many cases, the increasing cost of The law also requires that total hours worked (regular
living and inflation in consumer prices often outpaced time plus overtime) in any two-week period do not
the wage growth. exceed 120 hours (144 hours for night workers). The
law also provides premium pay for overtime. The
Kenya has some of the highest minimum wages in the government does not effectively enforce the law, as
East African region. In 2017, the monthly nominal limitations on overtime and hours in the workweek have
average wage was KSh 57,008 (US$566). The been violated80. A quick overview of the working
minimum wage for a general labourer was set at KSh conditions regulations in Kenya is available in Table 6.
13572 (US$131) per month. The average minimum
wage for skilled workers was set at KSh 18,274 Table 6: Status of Working Conditions in Kenya
(US$181).77 Around 84% of the workforce is not Fixed-term contracts prohibited for permanent
No
covered by the minimum wage as they operate in the tasks
informal economy. The average wage experienced a Maximum length of a single fixed-term contract
No limit
steady growth on 25% from 2013 to 2017. Similarly, (months)
from 2013 to 2018, the nominal minimum wage has Standard workday 8 hours
Premium for night work (% of hourly pay) 0%
steadily increased 24% in the agricultural sector and
Premium for overtime work (% of hourly pay) 50 %
non-agricultural sector. With a growth of 32% the
Paid annual leave (average for working days
lowest minimum wage in cities has increased the most with 1, 5 and 10 years of tenure, in working 21
(Table 5). days)
Page 12
Minimum length of maternity leave 90 Figure 3: Population pyramid based on Age-Sex structure
of the population in Kenya
Recieve 100% of wages on maternity leave Yes
Five fully paid days of sick leave a year Yes
Unemployment protection after one year of
No
employment
Source: World Bank, Doing Business, Labor Market Regulation Kenya
HIV/AIDS constitutes a serious public health problem

with negative repercussions in the labour market. With
more than 1.5 million Kenyans living with HIV/AIDS, and
an annual increase of new HIV infections by more than
44,000 people, Kenya has the 4th largest HIV epidemic
globally.81 The prevalence of AIDS/HIV positive adults
is concentrated along Lake Victoria with concentrations
up to 21% of the county population.82 About a million
are currently having antiretroviral treatment and the
prevalence rate declined in 2017 to 4.9% (5.2% Source: CIA, The World Factbook, Kenya
among women, 4.5% among men). Women aged 15-
24 years has the highest prevalence rate on 2.6%. Table 7 shows the status of employment-to-population
National AIDS Control Council (NACC) has a vision of ratio. First, this ratio was at 60% in Kenya in 2019, and
halting the epidemic, with zero new infections and stays significantly lower than the Eastern African region
eliminating the impact of the AIDS epidemic through with 14 percentage points. Second, the youth’s ratio
evidence-based interventions.83 was estimated very low at 29% in the country in
comparison with the region average at 58%. One of
Although many people living with HIV face high levels the reasons for this low youth employment rate is
of stigma and discrimination, HIV/AIDS awareness is related to the relatively high enrolment in primary and
high in Kenya, which in recent decades has been a huge secondary education as well as high youth
prevention success story in the region in line with Vision unemployment. Third, there are some minor gender
2030.84 To mitigate the pandemic, workplaces are gaps (see more in the sub-section: Gender). Not to
encouraged to mainstream HIV/AIDS policies. mention, in 2018, 45% of the total population was not
Counterfeit drugs supplied by unregistered or fake active in the workforce.88 The inactive segment is most
medical personal has been an increasing problem. often people who take care of housework, students,
people with disabilities and those who have retired
from employment.
WORKFORCE
Table 7: Estimations of employment-to-population ratio in
Kenya’s total population was estimated 48.4 million in Kenya and Eastern Africa, Age and Sex distribution, 2019
2019 out of which 19 million form the workforce.85 In Eastern
Sex Age Kenya
2017, the total population living in urban areas Africa
reached 27%, which is a steady increase of 4 Total 15+ 60 % 74 %
percentage points since 2007.86 More than 40% of the Total
Youth 15-24 29 % 58 %
population are under the age of 15 because of
Total 15+ 63 % 79 %
sustained high fertility, early marriage and lack of Men
Youth 15-24 31 % 61 %
family planning.87 However, Kenya's fertility rate has
decreased from eight children per woman to four Total 15+ 58 % 69 %
Women
children per woman over the last four decades. Today, Youth 15-24 27 % 55 %
the nation has the lowest fertility rate in East Africa, at Source: ILO, Key Indicators of the Labour Market (KILM)
3.9 births per woman. In contrast, Uganda's fertility
rate stood at 5.7 children per woman, Tanzania 5.1, ILO statistics standards divide the status of employment
Ethiopia 4.3, and Rwanda 4.0. Kenya’s population into four aspects: employers, employees (paid
pyramid in Figure 3 below visualises how the tempo of employment jobs), own-account workers (self-
the population growth is curbed in the child segment (0- employed), and contributing family workers (those who
4 years old). hold self-employment jobs in an establishment operated
by a related person, with a too limited degree of
Page 13
involvement in its operation to be considered a 2018. This clearly indicates that most employees work
partner).89 As depicted in Figure 4, Kenya has in the small-scale and pastoral sector. The wage
experienced structural changes on the margin in the employees have increased of 15% in absolute terms in
status of employment since 2000. The most significant the period from 2014 to 2018. In the same period, the
difference is the decline of contributing family workers total employment grew by 17%. Thus, the ratio of
from 41% in 2000 to projected 35% in 2020. This wage employment to the total employment dropped by
group is overhauled by the now largest group, namely one percentage point (Table 8).
‘employees’, which in 2020 is projected to cover 39%
of the total employment. Table 8: Total and wage employment in Kenya, 15-64 age,
2014-2018
Change,
The third most common status of employment is among 2014 2018
%
own-account workers. Together with the group of Wage employment 2,401,800 2,765,100 15 %
contributing family workers, which is known as
Total employment 15,203,100 17,783,200 17 %
vulnerable employment, this group is less likely to have
Ratio of wage
formal work arrangements and are therefore often
employment to total 16% 15% -1 p.p.
characterised by inadequate earnings, low productivity employment
and difficult conditions of work that undermine workers’ Sources: Kenya National Bureau of Statistics, Economic Survey 2019
fundamental rights. On the positive side, the amount of
own-account workers and contributing family workers Wage employment has largely grown equally in the
has experienced declining trend (minor for own-account private and public sector from 2014-2018 with
workers) since the 2000s. respectively 15% (Table 9). The private sector
constituted in 2018 70% of the of the total wage
With a labour market famous for its entrepreneurial employment.
environment, the last group employers, covers
comparably quite a big proportion of the total Table 9: Wage Employment by Industry in Kenya, 2014-
2018
employment with around 8% of employers in the
Change
country (Figure 4). In comparison, the average share of 2014 2018
%
employers in East Africa is in 2020 estimated to be Private sector 1,669,300 1,922,200 15 %
2.3%.90
Public sector 732,400 842,900 15 %
Figure 4: Estimations and projections of status of Total wage employment 2,401,800 2,765,100 15 %
employment in Kenya, %, 2000-2020 Sources: Kenya National Bureau of Statistics, Economic Survey 2019
100%
90%
Labour productivity reflects the ability to generate
35
higher income or value-added. It refers to how
80% 41 40 39 37
efficiently resources are used and increased through
70% coordination, a smarter, harder, and faster workforce,
60% as well as better technology and reduced waste. Also
17
50% 18 18 18 18 employees have an interest in high productivity as a
8 way to increase their value, as means to pursue better
40% 8 8
7 8 working conditions, and as a sustainable route out of
30% working poverty.91
20% 35 36 37 39
34
There is a linkage in the status of employment and
10%
labour productivity. First, employees in the formal sector
0%
2000 2005 2010 2015 2020
often have more access to capital, finance and training.
Second, own-account workers and contributing family
Employees Employers
workers often operates in informal micro- or small-
Own-account workers Contributing family workers
Sources: ILO, Key Indicators of the Labour Market (KILM) enterprises with low productivity activities.
Other data from the national Economic Survey The relatively high employees' segment (in contrast to
illustrates that out of a workforce (excluding small-scale contributing family workers and own-account workers)
agriculture and pastoral activities) of 17.8 million in the country suggests high labour productivity. Data
workers, the share of wage employees reached 15% in reveals some contrast, though. Figure 5 below shows
Page 14
that the labour productivity in Kenya has been on a Table 10: Unemployment and underemployment in Kenya
constant moderate increase since the 2000s. The level and Eastern Africa average, 2018
Eastern
of productivity in the Eastern African region has Type Kenya
Africa
experienced a similar trend, though half as large a Total 9.3 % 3.8 %
starting point. Kenya is staying well below the average Unemployment Men 9.4 % 3.6 %
for lower-middle income countries and far below the Women 9.2 % 4.1 %
World average. These two latter trends have been Youth Total 18 % 6.2 %
increasing steeper. The relatively low labour Unemployment Men 18 % 6.0 %
productivity is connected to high informality, low (age 15-24) Women 18 % 6.4 %
developed vocational skills and training. Total 20 % N/a
Underemployment *
Youth (15-24) 80 % N/a
Figure 5: Estimations and projections of labour productivity
trend, 2000-2020 * Visible underemployment rate: The ratio of the number of working
people working involuntarily less than 28 hours per week to the total
45000
employed.
Source: Kenya Economic Survey 2018 and ILO, Unemployment rate –
40000
ILO modelled estimates, Nov. 2018
35000
30000 Strict unemployment rate is shadowed by a significant

25000 underemployment (or overemployment) rate, e.g.
people who are willing and able to work more than
20000
they do. As depicted in Table 10, the youth
15000 underemployment is close to staggering 80% (see more
10000 in sub-section: Youth). For the total workforce, the
underemployment rate is around 20%. High levels of
5000 underemployment also explain the relatively low labour
0 productivity and informality of the labour market.
2000 2005 2010 2015 2020
Kenya Eastern Africa
Lower-middle income countries World The strict total unemployment trend shows a steady flat
Note: Labour productivity is defined as output per worker (GDP constant rate during the last decade at around one out of ten.
2011 international $ in Purchasing Power Parity (PPP)). The strict youth unemployment trend has also been
Source: ILO, Key Indicators of the Labour Market (KILM)
steady around one out of five (Figure 6). As in Figure 6,
data reveals how the strict unemployment rate trend
stayed significantly higher than that of the region.
Unemployment and underemployment
Unemployment is a critical issue in Kenya. In order to Figure 6: Unemployment trend in Kenya and Eastern Africa
accommodate national comparisons, ILO uses a specific (EA), Total and Youth, %, 2009-2019
25
definition of unemployment: the so-called ‘strict’
unemployment rate. This rate covers everyone who does
not exceed working more than one hour per week.92 20
Estimations of total unemployment and youth
unemployment in Kenya stand at 9% and 18% in 2019,
respectively, indicating a huge youth gab. Conversely, 15
there is no gender gab when it comes to strict
unemployment rate in Kenya. Compared to the East 10
African average, the strict unemployment rate in Kenya
is substantially higher: 6 percentage points for total
unemployment and 12 percentage points for youth 5
employment (Table 10).
0
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
EA - total EA - youth
Kenya - total Kenya - youth
Sources: ILO, Unemployment rate – ILO modelled estimates, Nov. 2018
Page 15
In a report from 2015/2016, the Kenyan National sector. The sector ‘community, social and personal
Bureau of Statistics has been criticised for downplaying services’ has the highest employment share of 40% of
unemployment, as the report concluded that the the total employment, which covers 1,091,400 workers
unemployment has been declining over the past 10 with a slight men dominance of 55% of the sector
years.93 In order to reach SDG 8, Kenya has to employment. The next most dominating sector
decrease its unemployment rates (see SDG table, employment is the agriculture sector (12%), trade and
Indicator 8.5.2, on Page iv) hotel/restaurant sector (12%) followed by the
manufacturing sector (11%) (see more sector
The low formal job creation in Kenya keeps many employment in Table 11). Wage employment
workers in poverty. There are initiatives to tackle represents the formal employed; it is to a large degree
Kenya’s high youth unemployment through a better excluding workers from the informal economy, mainly in
collaboration between the private sector, academia the agricultural sector, which covers 84% of the total
and government to develop innovative business models employment (see also the section: Informal Economy). It
such as entrepreneurship, industry-relevant curricula and furthermore explains why the segment of agricultural
enabling national policies.94 workers in Table 11 is low in comparison to the
employment by aggregate sector in Figure 7 above.
Sectoral Employment Table 11: Wage Employment by Industry in Kenya,

estimations, 2018
Kenya has experienced limited changes in the Sector Ratio of men in
composition of employment by sector during the last Total sector
Sector employment sector
employment
two decades. The agricultural sector’s share of share, % employment, %
employment is estimated to decrease 4 percentage Agriculture 336,600 12 % 63 %
points from 61% in 2000 to projected 57% in 2020
and remains by far the biggest sector measured by Mining & quarrying 15,400 0,6 % 83 %
numbers of employed (Figure 7). In the same time span,
Manufacturing 307,600 11 % 80 %
the service sector has increased 4 percentage points to
36%. The industry sector has remained its size from 7% Electricity, gas &
34,100 1.2 % 74 %
water
share in 2005 to projected 8% share in 2020.
Construction 171,600 6.2 % 69 %
Figure 7: Estimations and projections of employment by Trade, restaurants
342,200 12 % 72 %
aggregate sector in Kenya, 2005-2020 & hotels
100% Transport, storage
221,800 8% 68 %
& communication
90% Finance, real estate
32 33 79,900 2.9 % 62 %
34 36 & business services
80%
Community, social
70% and personal 1,091,400 40 % 55 %
7 7
services *
7
60% 8
Other services ** 160,600 5.8 % 47 %
50%
Total 2,765,200 100 % 63 %
40% Note: Wage employment excludes the majority (84%) of total
30% 61 60
workforce; namely the informally employed.
58 57
* This sector includes: Professional, scientific and technical activities;
20% Administrative and support service activities; Public administration and
defence; compulsory social security; Education; and Human health and
10% social work activities.
** Other sources include: Arts, entertainment and recreation; Other
0%
service activities; activities of households as employers; undifferentiated
2005 2010 2015 2020
goods- and services-producing activities of households for own use; and
Agriculture Industry Services
Activities of extraterritorial organizations and bodies.
Source: ILO, Employment by sector – ILO modelled estimates, Nov.
Sources: Kenya National Bureau of Statistics, Economic Survey 2019
2018
Table 11 below presents data from the national Table 12 below shows that the agricultural sector is the
Economic Survey in terms of the total wage employment largest sector that contributes to 34% of Gross
by industry. Almost two out of three (63%) are men who Domestic Product (GDP) in 2018. The second and third
dominate most sectors, except in the ‘other services’ main sectors are Finance, real estate and business
Page 16
services sector and Community, social and personal Figure 8: Aggregate sector share in Kenya, % of GDP,
services sector – both on 13%. Both sectors have 2010-2018
60
decreased slightly, respectively with 1.5 and 2.5
percentage points. Both the trade, restaurants and
50
hotels sector, transport, storage and communication
sector, and community social and personal services 40
sector, each share roughly a tenth of the total GDP and
have all been shrinking between 2014-2018 between 30
0.5 and 1.8 percentage points. In addition, despite the
fact that Kenya is the most developed country in East 20
Africa, the manufacturing sector is still not a main
contributor to its GDP and on a substantial declining 10
trend. This is furthermore challenging the unionism in the
0
country as well as to reach the global SDG on 2010 2011 2012 2013 2014 2015 2016 2017 2018
manufacturing employment (see more in SDG table, Agriculture Industry Services
Indicator 9.2.2. on page iv). Note: Based on the limitations of data availability, the three sectors do
not sum up to 100%
Table 12: GDP share by sector (%) and GDP growth (p.p.), Source: World Bank, World Development Indicators
estimations, 2014-2018
GDP share Change GDP
Sector by sector, %, share, p.p.,
2018 2014-2018
Migration
Agriculture 34 % 6.7 The net migration has changed during the last 15 years
Mining & quarrying 0.8 % 0.0 in Kenya. A positive value of the net migration (i.e.
Manufacturing 7.7 % -2.3 more people coming into Kenya than leaving) was
Electricity, gas & water 2.5 % 0.7
estimated at 25,144 persons in the period 1998-2002.
Since then, negative net migration has characterised
Construction 5.4 % 0.5
Trade, restaurants & Kenya (Figure 9). Especially from 2003 to 2007, almost
8.1 % -0.8 200,000 more migrated out of than into Kenya. This
hotels
Transport, storage & fluctuation was mainly due to unrest triggered by a
9.3 % -0.5
communication disputed presidential election in 2007. It was estimated
Finance, real estate &
13 % -1.5
that 500,000 fled their homes seeking refuge in either
business services other places in Kenya or neighbouring countries, mostly
Community, social and Uganda.95 It was estimated that around 12,000
13 % -2.5
personal services Kenyans sought refuge in Uganda.96 In 2015-2016,
Other services * 11 % -0.1 some of these externally placed Kenyans returned
home.
Total / average 100 %
* Other sources include: Arts, entertainment and recreation; Other Data demonstrate that personal remittances received
service activities; activities of households as employers; undifferentiated
goods- and services-producing activities of households for own use; were 2.5% of GDP in the period from 2013 to 2017
Activities of extraterritorial organizations and bodies; and taxes on on average, and it is in line to the sub-Saharan region
products. average (Table 13). It suggests that the out-migration is
Source: Kenya National Bureau of Statistics, Economic Survey 2019 not a strong part of the economy.
Figure 8 shows how the agricultural sector’s share of
Table 13: Status of Migration in Kenya
GDP from 2010 to 2018 has increased of 9
percentage points. The two other sectors, industrial and Net number of migration
Kenya - 50.000 *
(2013-17)
service sector, have decreased slightly. The agricultural
sector’s share of GDP remains more than double as high Personal remittance Kenya 2.4 %
in Kenya in comparison to the rest of the sub-Saharan (received), % of GDP Sub-Saharan
(2013-2017, av.) 2.5 %
Africa region. Correspondingly, the two others sectors Africa
are smaller in Kenya than in the rest of the region. * Net migration is the net total of migrants during a period of five
years, i.e. the total number of immigrants less the annual number of
emigrants, including both citizens and non-citizens.
Source: World Bank DataBank
Page 17
Figure 9: Net migration trend in Kenya, 1993-2017 destinations like the United Kingdom, the United States
1993-1997 1998-2002 2003-2007 2008-2012 2013-2017
50000 of America and also neighbouring United Republic of
Tanzania and Uganda. Another issue is that under-
development in western Kenya has made many workers
0 migrate towards the urban zones. The relatively high
youth unemployment has been a main push of rural–
-50000 urban migration and youth emigration. As previously
mentioned, the urbanisation rate in 2017 was 27%.
-100000 Kenyan migrant workers often lack formal organisation

and miss benefits of collective bargaining. In 2016, the
-150000 government deployed labour attaches in Qatar, Saudi
Arabia and the United Arab Emirates (UAE) to
coordinate and regulate contracts of Kenyan migrant
-200000 workers and to promote overseas job opportunities.100
The Ministry of East African Community also provided
-250000 assistance in understanding terms and conditions for
Source: World Bank, World Development Indicators work agreements for migrant workers before going
abroad to prepare them to work in a foreign country.
Some key characters of Kenya’s migration trends are As a mean to protect Kenyan domestic workers from
related to the fact that the country is a regional hub for unfair labour practices abroad, particularly in the Gulf
irregular migration as a destination, origin and transit countries, a Migrant Workers' Bill was approved into
country towards South Africa, the Middle East and law in 2016, while the Ministry of Labour deployed
North Africa, West Africa, Europe, and North America. labour attaches to the affected countries. Saudi Arabia
Statistics from the United Nation High Commission for and Qatar have signed bilateral agreements with
Refugee (UNHCR) show that 6.4% of Kenya’s Kenya for employment opportunities. Negotiations with
population (almost 500,000 people) was composed of UAE continues (2019). The government established a
refugees as of January 2018. In 2017, Kenya hosted directorate to regulate the conduct of labour agents for
the third largest number of refugees (489,071) in Kenyan migrant workers, including requiring the
Africa, exceeded by the neighbours Ethiopia and payment of a performance guarantee bond on
Uganda.97 The vast majority of immigrants in Kenya are 500,000 KSh (US$ 5,000) for each Kenyan migrant
from other African countries; the majority originates worker.
from Somalia, Ethiopia, Democratic Republic Congo,
and South Sudan. Most of the refugees are hosted in
camps. In February 2019, the government announced Informal Economy
plans of closing the Dadaab refugee camp within six The labour market is divided into a formal sector and
months. 98 Dadaab is among one of the largest refugee informal economy in Kenya. First of all, ILO defines the
camps in the world being home to nearly a quarter of a informal economy as “all economic activities by workers
million people. The camp is three decades’ old, and economic units that are – in law or in practise – not
sheltering mostly Somalis who fled the civil war at the covered or insufficiently covered by formal
beginning of the 1990s, and later on Somalis who fled arrangements; and does not cover illicit activities”.101
drought and famine in 2011. In 2016, the government Often wages and insurances in the informal economy
also tried to close the camp but was stopped by High are lower than the one in the formal economy.102
Court in 2017.
Second, the formal sector is a minority (16%) in terms of
Furthermore, Kenya is affected by internal the total employment in 2018. In contrast, informal
displacements as a result of conflict, natural disasters, employment was estimated at 84% of the total
climate change and environmental degradation, forced employment in 2017 (Table 14). It is worthwhile to
evictions, and finally traditional migration flows linked mention that this data excludes those engaged in small
to nomadism and pastoralism.99 scale agriculture and pastoralist activities. The ratio of
informal workers compared to formal workers has from
The emigration flow has been driven by a search for 2014-2018 increased by one percentage point.
employment and education opportunities in top- Kenya’s informal employment rate is near the sub-
Page 18
Saharan Africa average that was estimated at around subject to discrimination and harassment from the
80% of the labour force.103 authorities.
Approximately a third of Kenya’s GDP was generated Through affiliated unions such as KUDHEIHA, COTU (K)
in the informal economy in 2014 (Table 14). The is increasingly engaging, representing and organising
amount of informal workers covered by National informal workers through social dialogue. 109 In 2017,
Hospital Insurance Fund (NHIF) has increased with 10 COTU (K) had 16,510 members in the informal
percentage points from 2014-2017. This impressive economy.110 COTU have in recent years conducted
increase has to do with NHIFs quest to achieve universal workshops in order to identify informal groups and their
health coverage.104 Health care is one of the four needs.111
pillars of the Big Four agenda as a universal right,
together with food security, affordable housing and There is a series of challenges of taxing enterprises in
manufacturing.105 the informal economy, e.g. mistrust and weak structural
dialogue between informal economy and government
Table 14: Total and informal employment in Kenya, 2014- as well as tax evasion and corruption as normal way of
2018 doing business (see Appendix Table 23).
Change,
2014 2018
%
Informal employment * 11,851,000 14,865,900 25 %
Due to a lack of a legal framework that supports
tripartite social dialogue in the informal sector, most of
Total employment * 14,355,800 17,783,200 24 %
the dialogue is bipartite. The dialogue is usually either
Ratio of informal a union engaging with the informal economy employer
workers in total 83 % 84 % 1 p.p.
employment or the informal economy associations engaging with
Informal employment government agencies.
13 % 21 % 8 p.p.
covered by NHIF **
Informal economy
contribution to the GDP 30-35 % N/a
(%) Child Labour
* These numbers exclude those engaged in rural small scale agriculture
and pastoralist activities. ** Own calculations based Kenya National The constitution gives children legal protection from
Bureau of Statistics, Economic Survey 2019 hazardous or exploitative labour as well as the
Sources: Kenya National Bureau of Statistics, Economic Survey 2019 Children’s Act from 2001 explicitly prohibits forced
and IMF Working Paper, The Informal Economy in Sub-Saharan Africa: labour, trafficking, and other practices similar to
Size and Determinants, 2017
slavery.112 The minimum age for work is 16 (apart from
apprenticeships, which is allowed from the age of 13),
Out of the around 14.9 million workers in the informal
for hazardous work 18. However, the government lacks
economy (excluding those working in small scale
sufficient resources to monitor the law’s implementation
farming and pastoralist activities) in 2018, almost 60%
in practice and does not extend to those working
are working in wholesale and retail trade, hotels and
informally. It is estimated, that only 63% of births are
restaurants sector.106 In 2018, 84% of new jobs were
officially registered.113 Combined with a large informal
created in the informal economy (762,100) compared
economy, the exact extent of child labour in Kenya is
to the formal sector (110,000).107 The job creation ratio
difficult to monitor.
has largely been like this since 2013.
According to a UNICEF study from 2016, 26% (almost
Both employers’ organisations and trade union
5 million) of children up to the age of 14 are engaged
federations are increasingly finding interest in the
in child labour. Other data suggests the percentage is
informal economy as new membership recruitment. In
up to 36%.114 Following data from UNICEF, the
the National Labour Board and the Wage Councils,
percentage of child labourers among all children is the
informal workers are represented. The informal workers
same in Kenya and the Eastern and Southern region in
are becoming more organised into associations,
Africa (Table 15).
cooperatives, and unions to negotiate wage and work
conditions matching the government’s minimum wage
guidelines and representation in the Employment and
Labour Relations Court.108 Despite this, the minimum age
for work does not reach children working in the informal
economy and especially women working informally are
Page 19
Table 15: Working Children, proportion of all children ages secondary school in 2017, making child labour more
5-17 less attractive (see also the section: Education).
Region Year Type Proportion
Child labourers* 26 % The National Policy on Child Labour was approved in
Kenya 2016
Hazardous work 2.5 % **
October 2016 after 15 years of lobbying. This policy is
Eastern and Child labourers informed by the ILO Conventions 138 and Convention
2017 26 %
Southern Africa 182 and moves Kenya closer to achieve the SDG8 with
Hazardous work 13 %**
reference to eradicating all forms of child labour
* Children aged 5-11 years involved in child labour activities: doing at
least one hour of economic activity or at least 28 hours of domestic before 2025. However, as mentioned, the child
work. For children aged 12-14 the working hours are respectively 14 labourers’ rate stays high and challenging the SDG8
and 42, source for definition: UNICEF. ** This is data from 2008. target (see also SDG table, Indicator 8.7.1, on Page
Source: UNICEF 2016, ILO, Accelerating action against child labour,
iv).
International Labour Conference, 99th Session 2010 and Bureay Of
International Labor Affirs, Child Labor and forced Labor Reports, Kenya
Most of the Kenyan child labourers work on family Gender

agriculture plots, in mining, as domestic servants, in The 2010 constitution provides a powerful framework
fishery, as vendors or scavengers in the cities or in the for addressing gender equality. The law prohibits
worst cases commercial sexual exploitation. The amount discrimination based on gender and bills to improve
of working girls compared to boys is roughly the conditions for breastfeeding mothers were in 2017
same.115 adopted (see section: National Labour Legislation).
However, in practise, the Kenyan labour market has a
A list of specific jobs considered hazardous that would wide range of gender gaps that most often disfavour
constitute the worst forms of child labour was published women in various ways. The workplace has traditionally
in February 2014. In 2017, the government launched a been men dominated, especially at higher management
national online database system to collect, aggregate levels where policy issues are discussed. But women's
and report on child protection data that informs policy voices are gradually becoming more and more
making and budgeting for orphans and vulnerable heard.121 On the other hand, the percentage of women
children; The Child Protection Information Management engaged in vulnerable employment is with 29
System.116 percentage points significantly higher than for men. The
employment rate is slightly higher for men, and the rate
At a national level, 8.4% of children were in 2015 for unemployment is equal across gender (Table 16).
orphans, partly due to HIV/AIDS.117 Two Child Rescue
Centres were established in 2017, bringing the total Table 16: Workforce key indicators gender gaps estimations
number of these centres to eight. At the centres, child in Kenya, 2019
labourers can withdraw to rehabilitate and receive Difference
counselling and life skills training.118 men/women,
Men Women
percentage point
(p.p.)
In Kenya, households with children (34%) have a higher
Employment 63 % 58 % 5 p.p.
probability of being poor compared to those without
Unemployment 9.4 % 9.2 % 0.2 p.p.
children (14%).119 Under two programs National Safety Employees 54 % 23 % 31 p.p.
Net Program for Results and Decent Work Country Vulnerable
Program, the government pays households sheltering 39 % 68 % -29 p.p.
employment*
orphans and vulnerable children to deter them from * Aggregate own-account workers and contributing family workers
engaging in forced labour or dropping out of school.120 Source: ILO, Key indicators of the Labour Market (KILM)
The government collaborates with COTU, FKE and The Global Gender Gap Index – measuring gaps
donors to eliminate child labour. Among others, they rather across gender – ranked Kenya as number 76 out
participate in the National Steering Committee on the of 144 countries (1 is highest) in 2018. On economic
Elimination of Child Labour, and they meet quarterly participation and health access, Kenya had its best
together with other stakeholders such as NGOs. The scores and the worse rankings in educational attainment
government has in 2003 introduced free and and political empowerment.122 The other international
compulsory primary education and the same for Gender Inequality Index – measuring health,
empowerment and economic status – ranked the nation
Page 20
with medium human development as number 131 out of Through the enactment of the National Gender and
151 countries (1 is highest).123 What keeps this ranking Equality Commission Act from 2011, the National
low is the relatively high maternal mortality ratio (319 Gender and Equality Commission (NGEC) has been
deaths per 100,000 live births) and low percentage of established.125 This commission has the mandate to
women in parliament (13%). promote gender equality and freedom from
discrimination. 126
Largely in line with ILO’s standard, the Employment Act
provides 3 months of paid maternity leave for new
mothers paid by the employer, and women are ensured Youth
rights to return to a job at the similar level (if not the With a youth unemployment rate on 18%, youth
same job) after the maternity leave. In terms of underemployment on staggering 80% and youth
implementation, a study revealed that women in the employment-to-population ratio on just 29%, Kenya is
formal sector generally are able to get the 3 months challenged. In absolute numbers, young women in rural
leave. On the other hand, the salary during maternity locations constitute the largest share of unemployed
leave is paid by the employer and this raises the risk of Kenyan youth, while young men in urban areas are most
discrimination based on gender, i.e. having a women likely to be unemployed in relative terms.127
staff on maternity leave creates additional salary cost Unemployment is according to a household survey the
for the employer, thus making women staff of main concern for the Kenyan youth.128 The youth largely
reproductive age on non-temporary contracts a liability feel that they are being discriminated against in the
for the employer. This may lead to employers labour market, because of their youth.129 Compared to
preferring men staff to women staff. The Employment its Tanzanian counterpart, the Kenyan youth is more
Act provides for 2 weeks of paternity leave pessimistic when it comes to their employment situation.
immediately upon the birth, with full pay by the The SDG targets to achieve full employment by 2030
employer. However, many men do not take their (see more on SDG Table, Indicator 8.5.2, on Page iv).
paternity leave, which is related to socio-cultural To achieve this, youth unemployment and
attitudes of masculinity as well as general sentiment of underemployment have to be reduced drastically.
making work a priority.124
The youth (15-24) makes up almost 20% of the total
A 2018 Enterprise Survey reported that 47% of firms population, and each year 500,000 to 800,000 young
had woman participation in ownership, which is higher Kenyans enters the job market.130 Out of this group, it is
than the sub-Saharan Africa average at 35%. Firms estimated that only about 15% of them are successful in
with women managers remain low in Kenya, which is securing formal jobs.131 This youth bulge further
also the case for the sub-Saharan region and lower complicates access to the labour market, as competition
middle income countries in general (Figure 10). is harsh.
Figure 10: Women participation in employment, top The NEET rate, meaning the number of youth (15-34)
management and ownership in the Kenya, %, 2018
50 47 neither in education, employment or some sort of
45 training, was estimated at 29% in 2013. Women youth
40
was disproportionally represented within the group
35 (42%), significantly higher than men (14%). This further
35 32
30 29 confirms that access to employment and opportunities
30 27
for obtaining a living in Kenya are cut along age and
25
20 gender lines.132
20 18
16
15 The Kenyan government has not been able to provide
10 the necessary amount of employment opportunities for
5 its young population as recent employment growth
0 largely has benefitted the older population. As youth
Proportion of permanent Percent of firms with a Percent of firms with female
full-time workers that are female top manager participation in ownership unemployment is a rising problem, this is a matter of
female
priority for both government, unions and employers’
Kenya Sub-Saharan Africa Lower middle income
organisations. A proposed solution to decrease youth
Source: ILO, Key indicators of the Labour Market (KILM)
unemployment is to make agriculture more attracting
for the youth.
Page 21
A high rate of youth underemployment rate happened Up to the age of 13, education is tuition free and
meanwhile the university enrolment more than doubled compulsory, though mandatory attendance has not been
from 2012 to 2016.133 The education system in Kenya enforced.141 In 2003, the government instituted free
has been criticised for not preparing the students primary education, and in 2009, free – yet not
adequately for the labour market (See section: compulsory – secondary education.142 Language of
Education).134 instruction in the first three years of primary school is in
either local language (more than 42 different
In 2016, the government launched the process of languages) or Kiswahili, while English is the language of
reviewing the somewhat out of date National Youth instruction after grade 3.143
Policy. This includes focusing on improving the
employment issues for the youth in Kenya. So far, the Kenya allows pregnant girls to continue their education
previous youth policy had identified skills development until after giving birth, though NGOs have reported
of the youth through vocational training and imparting that schools often do not respect this right.144
life skills as an important issue. Although the enrolment
in schooling is on a rise on all levels, Kenya has a very Data shows an increasing net enrolment in primary
low participation rate in vocational training (see more school since 2006 after it was made compulsory and
in the sub-section: Vocational training). It is also free in 2003. This large influx of pupils not previously
cumbersome starting a business with some improvements enrolled in schools results in unprecedented numbers of
in recent years, though (see also Appendix Table 23. On graduates competing for limited seats in secondary
the positive side, Forbes Africa recently released a list schools.145
of Africa’s 30 best entrepreneurs under 30 years. It is
notable that seven out of the 30 entrepreneurs are Kenya has since then been hovering far above the sub-
Kenyan.135 Saharan Africa average, with slightly more females
enrolled than males in recent years (Figure 11). It is to
The Youth Enterprise Development Fund (YEDF) financed some extent reflected by the marginally higher segment
over 157,000 youth enterprises and contributed to of male working children than for females. Kenya’s free
create over 300,000 jobs within five years.136 primary education is still constrained by insufficient
However, an analysis of YEDF concluded that most school infrastructure, overcrowding in schools, late or
youth have not been properly informed on how the fund non-disbursement of funds by some development
can be accessed as well as low repayment rates. partners, regional enrolment disparities and the
Moreover, the lack of monitoring and capacity building devastating impact, which HIV has had on the sector.146
is insufficient concerning gender imbalance.137
The enrolment in secondary school was also high in
Many youths have become discouraged and have Kenya and continued on a fast enrolment increase that
begun to leave the labour market entirely. On this peaked above 55% in 2012. Thus, it is much higher
background, the COTU (K) called attention to the youth than the sub-Saharan Africa average (Figure 11).
seeking employment abroad due to the high youth
unemployment rate, and the risk of ending up in slavery In recent years, Kenya has overhauled the regional
and servitude despite assurance from some government average when it comes to gross enrolment in tertiary
officers and a clique of unscrupulous employment schools. Sub-Saharan Africa and Kenya in particular
agents and bureaus.138 has from 2009-2015 experienced a large increase in
the tertiary gross enrolment and while the enrolment
The Government of Kenya’s Youth Employment Scheme from 2015-2016 flattened out in the region, it
Abroad aims to match Kenyan youth to employment continued to increase rapidly in Kenya.
opportunities abroad.
Around 26% of those who have attained university
level of education are inactive.147 This share is higher
EDUCATION than of those who have attained a middle level
(college) which is 13%.
Kenya’s national education system is structured on eight
years of basic education (beginning at the age of six),
four years of secondary education and four years of
undergraduate studies.139 The government spent 17%
of their total expenditure on education in 2017.140
Page 22
Figure 11: Enrolment in Primary, Secondary and Tertiary economy entry while higher education levels
schools, Male and Female, Kenya and sub-Saharan Africa discouraged entry. Instead higher education levels
(SSA), %, 2000-2016
increased chance of entering wage employment. This
Net enrolment in primary school
90 suggested that educational expansion would increase
Kenya -
85 Male
females’ access to the wage sector. For males, more
education would increase access into the public sector.
80 Kenya -
Female In addition, education has impacted positively on
75 incomes in the public sector, the private sector, and the
SSA -
70 Male informal economy.148 Here, the challenge remained that
the formal sector did not create sufficient decent jobs.
65 SSA -
Women Among others, this has been related to the fact that
60 public sector job opportunities were shrinking due to
55 public sector reforms during the 2000s as well as a fast
growing labour force. Not to mention, it was also
50
reflected by the relatively high youth unemployment in
Kenya.
Net enrolment in secondary school
60
55 Kenya - Vocational training
Male
50 Vocational training is on an upsurge in Kenya. The
45 Kenya - structural stance of the labour market keeps skills
Female
40 gained from vocational schools used in the informal
35 SSA - economy. The government acknowledge the central
Male
30 position vocational training holds for the implementation
25 SSA - of Vision 2030 and Big Four agenda.
Women
20
15 Technical and Vocational Education and Training
10 Authority (TVETA) is a State Corporation under the
Ministry of Education and is established under the
Technical and Vocational Education and Training (TVET)
Gross enrolment in tertiary school Act from 2013.149 TVETA regulates, coordinates,
16
promotes and develops technical and vocational
Kenya -
14 Male education.
12 Kenya -
Female
In 2018, TVETA presented its strategic plan for 2018-
10 2022, which seeks to achieve a modern and labour
8
SSA - market-responsive TVET system for Kenya.150 To
Male
improve accessibility to technical educations, the
6
SSA - government plans to establish technical institutions at
Women
4 every constituency and vocational centres at each ward
2
level.151 In 2019, TVETA has accredited 980 public and
private institutions, with more than 250 awaiting
0 accreditations and 180 institutions recommended for
improvement.
Note: Net enrolment is the ratio of children of official school age, who
are enrolled in school to the population of the corresponding official Governmental resources allocated to vocational training
school age. Gross enrolment is the ratio of total enrolment, regardless
of age, to the population of the corresponding official school age. is increasing and expenditure of vocational training is
Gross enrolment can therefore be higher than 100 percent, but with expected to grow 156% from KSh 2.5 billion (US$24.8
tertiary or university education, the age of the pupils is more diverse.
Source: World Bank, Education Statistics million) in 2017/2018 to KSh 6.4 KSh (US$63.5 million)
in 2018/2019.152 This explosive growth is caused by
According to an analysis, education was not an obstacle the transfer of technical teachers from Teachers Service
for entry into agricultural employment. Low education Commission (TSC) to the State Department. The
levels significantly raised the probability of informal recurrent expenditure for TSC is expected to account
Page 23
for 56% of the total recurrent expenditure for the SOCIAL PROTECTION
Ministry of Education in the review period.
Recently the Kenyan government has made significant
progress in developing its national social protection
From 2017-2018, public vocational training centres
system, not least because of increased political
grew 27% to 1,502 centres, making it the fastest
commitment in line with Vision 2030.158 The country
growing category in the education sector.153 In line with
invests more in social protection than many richer
this trend, the amount of students enrolled in vocational
middle-income countries and is the leading investor in
colleges has since 2014-2018 grown 128% from
the region.
hosting almost 50,000 students to more than 125,000
students (Figure 12). The highest growth of student
Overall, 10% of the population is covered by at least
enrolments, though numerically lower than in vocational
one social protection benefit in 2016 (Table 17). There
colleges, has been in technical universities and
are no specific interventions that directly address
polytechnics on 274% from 2014-2018.
unemployment benefits. This challenges the country’s
Figure 12: Pupils in technical universities, polytechnics and SDG target in implementing nationally appropriate
vocational colleges, 2014-2018 social protection systems and measures for all, and by
300000 2030, achieve substantial coverage of the poor and the
vulnerable (see SDG Table, Indicator 1.3.1, on Page
250000
iv).
200000
Table 17: Benefits schemes, Kenya, %, 2016
150000 Benefit schemes %
Children covered by social benefits
8.1 %
100000 (Contingency)
Persons above retirement age receiving a
25 %
50000
pension (Contingency)
Population covered by at least one social
10 %
protection benefit (Contingency)
0
Unemployed receiving unemployment benefits
2014 2015 2016 2017 2018 0%
Technical university and polytechnic (Contingency)
Vocational college Vulnerable persons covered by social
5.8 %
Source: Kenya National Bureau of Statistics, Economic Survey 2019 assistance (Contingency)
* The average covers the entire Africa region.
Source: ILO, SDG labour market indicators
The share of females in vocational education has grown
few percentage points from forming 37% in 2014 to
A National Social Protection Policy (NSPP) was in 2011
41% in 2018. The same tendency in technical
developed under the then Ministry of Gender, Children
universities and polytechnics.154
and Social Development with the aim of ensuring that
all Kenyans are able to live with dignity despite shocks
Some of the main challenges of technical and vocational
and risks they may face during their lifetime. Here,
education training in Kenya are coupled with a bias
dignity includes access to decent work, affordable
against technical courses among youth because many
healthcare, social security and social assistance.159 In
believe that they are of lower value than other
2013, the Social Assistance Act was passed to establish
professional courses which promise a higher paying job
NSPP, which would identify and provide social
as well as a higher social status.155
assistance to disadvantaged persons such as disabled,
poor, orphans and vulnerable children, unemployed
As depicted in the previous Figure 11, the net enrolment
and widows or widowers. The act has never been
rate in secondary schools is high compared to the sub-
implemented.160
Saharan Africa. But in 2017, 49% of official secondary
school age students were out of school.156 A suggestion
In Kenya, social protection is entrenched in three ways:
to improve the education system is to incorporate
i) through cash transfer programs improving food
technical training at all levels of learning in Kenya,
security, retention of children in schools, and access to
equipping school leavers with skills required for
basic health care; ii) through NSSF which provides
effective participation in the labour market. In general,
protection to formal and informal workers in form of
vocational training is seen as a way to decrease the
lump sum payment upon retirement; iii) and through
high youth unemployment rate.157
NHIF which provides social health insurance to orphans
Page 24
and vulnerable children, persons with severe disabilities the employer-provided insurance varies – e.g. some
and elder persons.161 Limitations exist in the include family planning while others do not.
implementation and reach of social protection programs
and none of them attain universality. Referring to the Based on a mapping of workplace general provisions,
three channels of social protection, in 2016, 813,381 employers’ responsibility to protect safety and health of
households received lump-sum payment, NSSF reached workers have low gaps on policies, but with some gaps
4.6 million members, and NHIF covered 2.7 million in their implementation. Also prevention along OHS
contributing members. 162 management principles and practice together with
elimination if discrimination based on gender have low
Through the National Safety Net Program (NSNP), Inua gaps on the policy level while high gaps in the
Jamii (Kiswahili for Community) provides cash transfer implementations.171
to orphans and vulnerable children, older persons,
persons with severe disabilities and those affected by Kenya has a medium health-care expenditure not
hunger unsafely.163 In 2013, the Inua Jamii Cash financed by private household's out-of-pocket payments
Transfer Programme was launched, providing cash on 28% in comparison with the Eastern African
payment to the elderly.164 According to the Kenyan countries. This difference, signalled in Figure 13 below,
government, this programme has been a success and shows that health out-of-pocket expenditures is on a
increased from slightly over 200,000 beneficiaries in slightly decreasing trend in Kenya and is situated below
2013 to 1.3 million in 2019. Inspired by the Inua Jamii the sub-Saharan average which is slightly increasing.
programme, the government is in 2019 planning to
launch the KSh 33 billion (US$328 million) Kenya Social Figure 13: Out-of-pocket expenditure (% of current health
and Economic Inclusion Programme aiming to boost expenditure), %, 2009-2016
ongoing efforts to transform the socioeconomic 45
wellbeing of Kenyans.165 40
35
Senior Citizen’s scheme was in 2018 under Inua Jamii
introduced, aiming at providing universal pension to 30
everybody above 70 years on KShs 2,000 (US$20) 25
and free medical cover through NHIF.166 According to
20
ILO, the coverage rate of persons above retirement
age receiving a pension was at 25% in 2016. 15
10
There is a wide range of health related interventions,
5
e.g. NHIF which provides hospital coverage for
members and their dependants. The Kenyan Constitution 0
2009 2010 2011 2012 2013 2014 2015 2016
safeguards that the population has the right to the Kenya Burundi
highest standard of health, but NHIF only covers 7.7 Rwanda Uganda
million Kenyans (16% of the population).167 While Tanzania Sub-Saharan Africa
almost all formal workers are enrolled (98%), only Note: Out of pocket expenditure is any direct outlay by households,
16% of informal workers are enrolled in the Fund. 168169 including gratuities and in-kind payments, to health practitioners and
suppliers of pharmaceuticals, therapeutic appliances, and other goods
Principal membership for NHIF stood in 2018 at and services whose primary intent is to contribute to the restoration or
7,657,463 compared to 6,817,888 in 2016/17.170 In enhancement of the health status of individuals or population groups. It
addition, NHIF does not provide a full range of services is a part of private health expenditure.
relevant to Sexual and Reproductive Health and Rights Source: World Bank, World Development Indicators
(SRHR) – e.g. Antiretroviral treatment (ARV) is
available for persons living with HIV/AIDS and STI
testing is included, while family planning is not included. ECONOMIC PERFORMANCE
Employers are not required to provide any additional Kenya is the largest economy as well as one of the most
health insurance or health services to their employees. dynamic members of East Africa Community (EAC). It is
Nevertheless, some do voluntarily. There are no a transport regional hub based on a strong private
guidelines for such voluntary provision of additional sector. Inadequate infrastructure remains a hindrance
health services. Consequently, the range and quality of for improved economic growth. Around a tenth of the
land is agricultural land and permanent pasture
Page 25
represents 37% of the total area. Agriculture remains Figure 14: GDP per capita growth and inflation rate, Kenya
the backbone of the Kenyan economy, contributing one- and the sub-Saharan Africa (SSA), %, 2009-2018
third of the GDP and occupying three out of five of the 16
workforce. Other large occurrences of natural resources 14

include different minerals and hydropower. Despite 12
political turmoil and terrorist activities, tourism also 10
plays a significant role in Kenya’s economy with up to 8
20% of GDP.172 6
4
GDP grew by 5.6% on average from 2009 to 2018 2
(Table 18). The prolonged election in 2017 has hurt the 0
economy and slowed GDP growth, which nonetheless in -2
2019 is projected higher (5.8%) than the average.173 In -4
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
contrast to all its neighbouring countries, Kenya is not a Kenya - GDP per capita
low-income country, but a lower-middle income country SSA - GDP per capita
Kenya - Inflation in consumer prices
with a GDP per capita (current US$) of US$1,711; Source: World Bank, World Development Indicators
ranking 187 out of 228 countries (1 is highest).
Generally, the economy created 840.600 new jobs in
Table 18: Key economic data in Kenya, 2018 2018. The number of persons engaged, excluding those
GDP US$ 87.1 billion in rural small-scale agriculture and pastoralist activities,
GDP per capita (current US$) US$ 1,711 rose by 5.0% to 17.8 million persons in 2018.175
GDP real Growth (av., 2009-2018) 5.6 % Employment in the public sector went up from 833.100
Inflation in consumer prices (av., persons in 2017 to 842.900 persons in 2018. The
7.5 % private sector, which accounted for 70% of the total
2009-2018)
Tax revenue (% of GDP) (2017) 15.7 % employment, grew by 3.0% in 2018.
Source: World Bank, World Development Indicators
Foreign Direct Investment (FDI) inflows – i.e. the value of
The GDP per capita growth has the last decade been an inward direct investment made by non-resident
higher in Kenya compared to the sub-Saharan average, investors in the reporting economy – is very low in
especially since 2016 when the sub-Saharan region Kenya scoring lower (0.3% of GDP) compared to the
began to experience negative GDP per capita growth sub-Saharan average (0.8% of GDP).176 This clearly
(Figure 14). In 2018, the GDP per capita growth in suggest weaknesses on attracting FDI, not only to
Kenya was 3.9%, which is 1.5 percentage points higher increase investment in the economy, but also to maintain
than the 2017 value of 2.4%. Since 2013, the inflation external stability. It is furthermore reflected in the
has remained within the government’s preferred band industry sector’s declining GDP share and its continuous
of 2.5-7.5%. The inflation has in recent years largely low employment rate (revisit the sub-sector: Sectoral
been driven by food inflation and was 4.7% in 2018. Employment).
Kenya continues to benefit from low fuel prices,
rebound in tourism, a stable macroeconomic The country has a relatively high level of income
environment, eased political uncertainties, good inequality of 23 out of 158 countries (1 is most
weather, stable remittance inflows, and a government- unequal).177 On the positive side, according to the Gini
led infrastructure development initiative.174 Index, the inequality in the distribution of family income
has experienced a drop from 49% in 2005 to 41% in
2015. It is also gratifying that the Human Development
Index (HDI) from 1990-2017 has increased slightly and
steadily on a total increase of 26%.178 The HDI value
for 2017 is on 0.59 putting the country in the medium
development category positioning 142 out of 189
countries (1 is best).
Even though Kenya has experienced steady economic

growth, the share of working poor has not decreased.
While extremely working poor and near poor from
Page 26
2000-2020 is projected to decrease one percentage Kenya continues to improve business conditions notably
point, the moderately poor is projected to increase one according to the Doing Business Index: Kenya is indexed
percentage point (Table 9). Meanwhile the share of as 61 out of 190 countries in 2019, which is an
middle-class is projected to only increase two substantial improvement from being 92 in 2017 and
percentage points. 113 in 2016 (Appendix Table 23). Kenya continues to
score better than the sub-Saharan Africa average, only
Table 19: Estimation and projection of employment by overhauled by Rwanda (29). The impressive
economic class in Kenya, PPP, %, 2000-2020 improvement has, among other things, to do with the
Moderately
Extremely Near poor fact that the country has resolved insolvency and a
poor Middle class
Year poor (>=US$3.2
(>=US$1.9 & (>=US$5.5) simplified process of providing value added tax
(<US$1.9) & <US$5.5)
<US$3.2) information by enhancing its existing online system.180
2000 30 % 27 % 24 % 18 % Out of ten indicators, the country scores lowest on
2010 36 % 29 % 21 % 15 % dealing with construction permits (128), starting a
2020 29 % 28 % 23 % 20 % business (126) and registering property (122). Kenya
Note: Data in this table exclude the economically inactive population
scores best at getting credit (8) and protecting minority
that covers around 40% of working age population. investors (11).
Sources: ILO, Key Indicators of the Labour Market (KILM)
Kenya plays an important role in East Africa as a
In contrast to Kenya that overall is projected to have regional centre for trade and finance. The country has
the same grouping distribution in 2020 as in 2000, East a quite visible trade gap with an unfavourable balance
Africa in general has in the same period experienced a of trade, i.e. an export of 19% of GDP and import of
considerable reduction of the extremely and 31% in 2018. Kenya’s export continues to be relatively
moderately poor share from 80% to 62% and an low (10 purchasing power lower) in comparison with the
increase of those who earn more than US$3.2 from sub-Saharan average.181
20% to 38%. Factually, Kenya has the last decades
had a smaller share of poor and a bigger share of
middle-class in comparison with both the East African Export Processing Zones (EPZ)
and sub-Saharan Africa average, but has not been Investors at EPZs in Kenya are entitled to a 10 year-
part of the regional poverty alleviation, but instead corporate tax holiday and 25% tax thereafter, a 10-
projected in 2020 to find itself at 2000 status quo. 179 In year withholding tax holiday on remittances to non-
2020, the extremely and moderately poor are residents, 100% investment deduction on initial
projected to be only 5 percentage points larger in East investment applied over 20 years and VAT exemption
Africa compared to Kenya (see also SDG Table, on industrial inputs.182 The investors are restricted to
Indicator 1.1.1, on Page iv). selling only 20% of their produce to the Kenyan market
while 80% is exported.183
Attempts of poverty alleviation in Kenya have been
supported by the relatively high minimum wage The gazetted EPZs in Kenya increased from 42 in 2010,
increases along with the coverage of health social to 52 in 2014 and to 71 in 2018, whereas 24 are
protection, social safety nets and enrolment in situated in Mombasa.184 The EPZs are mainly in the
education. It explains, to some extent, the just sectors of horticulture, clothing/garments manufacturing,
mentioned decreasing inequality in the country. pharmaceuticals, and processing of tea.185 EPZ exports
However, this report has also shown that the wage goes among other places to the United States under
employment has not increased, confronting a relatively AGOA.
high unemployment rate and a large majority of the
labour force continues to operate in the informal The amount of employed in EPZ grew by 33% (2010-
economy. On this background, the drop of the middle- 2017) from 31,502 in 2010, to 46,738 in 2014, to
class during the 2000s is a signal that the labour 54,764 in 2017 (which equals 2.1% of total wage
market does not include the continuous high influx of employees).186 Export authority listed 131 enterprises
workers into the modern formal sector. This is linked to operational in 2018 at the headquarters while another
the correlation between higher wages and formal work. 42 have been approved.187 Overall, union membership
This challenges the evolution of the middle-class during of workers within the EPZs has remained low, i.e. an
the rest of the 2010s and onwards. estimated 14% of workers were unionised.188 As an
example, the Kenya Textile Workers' Federation states
Page 27
that getting workers to join a union is difficult because wages within the EPZs on average were 22% higher
the managers in EPZ companies use nonregistered than the minimum wage. Although the average wage in
organisations to recruit casuals on their behalf.189 Kenyan EPZs is lower than in many other African EPZs, it
is still higher than in Asian countries, such as Bangladesh,
Prior to 2003, the Kenyan government did not allow China, and India.
EPZ workers the freedom to unionise or engage in
collective bargaining.190 It triggered strikes during the Collective bargaining in Kenyan EPZs is still fragile and
2000s. Due to reforms of the labour laws, including the improvements of working conditions remain critical, e.g.
right to organise and bargain collectively, this applies workers within the Kenyan EPZs have put up with long
in the EPZs, but labour standards are often worse in hours, unpredictable work and many are only hired on
EPZs. For instance, the average wage in the Kenyan a casual basis.
EPZs for locals (KSh 15,322 (US$152)) in 2017 is 3.7 In 2018, large scaled corruption within Export
times lower than the nominal average wage.191 Processing Authority (EPZA) was revealed. The scandal
included procurement irregularities involving billions of
The Factories Act deals with the health, safety and Ksh where 13 companies received money for goods
welfare of an employee, who works in a factory. Many and services they never delivered. Three senior
exemptions to the labour law are made, for example a managers have been suspended for 90 days while
law that prevents women from working in industrial investigations are taking place.194
activities at night. Firms in EPZs have still refused to
recognise trade unions and obstructed their efforts to East African Community partner states negotiated to
organise workers. The use of temporary employment reach a consensus on the access threshold in EPZ
has an effect on workers’ ability to unionise.192 products to the regional market. It failed in June 2018.
Kenya pushed to remove restrictions on investors,
A study from 2013 investigated the effect of trade allowing them to sell near half of their annual products
unions on employees’ welfare with a specific focus on to the regional market.195 However, Uganda, Tanzania,
EPZ Tailors and Textile Workers Union affiliated Rwanda and Burundi stayed firm on their long-standing
companies in the area of Athi River. The study revealed positions on the EPZ market access threshold. EPZ/SEZ
that collective bargaining has affected employees' producers are allowed to sell 20% of their total annual
wages and benefits positively.193 It was estimated that production within the EAC.
Page 28
APPENDIX: ADDITIONAL DATA

Table 20: Registered Trade Union membership in Kenya, 2018
Women
Trade unions Total members
members
Central Organisation of Trade Unions (COTU (K))
Amalgamated Union of Kenya Metal Workers 6,817 1,230
Kenya Petroleum Oil Workers Union 9,771 750
Bakery, Confectionery Manufacturing & Allied Workers Union 28,500 12,500
Kenya Building, Construction, Timber, Furniture & Allied Trades Employees Union 71,800 3,810
Kenya Chemical & Allied Workers Union 3,760 800
Kenya Engineering Workers Union 35,100 150
Kenya Game Hunting & Safari Workers Union 6,340 910
Kenya Union of Printing, Publishing, Paper, Manufacturing & Allied Workers 4,715 840
Kenya Plantation & Agricultural Workers Union 735,550 345,550
Kenya Scientific, Research, International, Technical & Allied Institutions 3,230 2,615
Banking Insurance & Finance Union 7,240 4,290
Communications Workers Union (CWU) 10,023 7,773
Railway Workers Union 765 670
Tailors & Textiles Workers Union 253,610 62,610
Transport & Allied Workers Union 12,502 12,152
Kenya Union of Entertainment & Music Industry Employees 2,280 1,400
Kenya Union of Domestic, Hotels, Educational Institutions, Hospitals & Allied Workers 304,400 124,700
Kenya Union of Sugar Plantation Workers 188,017 122,017
Kenya Local Government Workers Union 193,540 11,440
Kenya Shipping, Clearing & Warehouses 3,116 2,286
Seafarers Workers Union 262 209
Kenya Quarry & Mine Workers Union 14,512 11,792
Kenya Electrical Trades Allied Workers Union 65,066 53,751
Kenya Shoe & Leather Workers Union 6,452 5,208
Kenya Jockey, Betting Workers Union 1,280 470
Union of National, Research Institutes 16,189 13,339
Kenya National Private Security Workers Union 161,539 119,039
Kenya Salon and Beauty Union 9,910 2,560
Kenya Hotels & Allied Workers Union 3,145 2,935
Kenya Union of Commercial, Food & Allied Workers 111,758 43,058
Kenya Aviation and Allied Workers Union 560 510
Kenya Union of Journalists 6,060 3,610
Kenya Long Distance Truck Drivers and Allied Workers Union 2,847 2,757
Kenya National Union of Nurses 62,900 25,900
Kenya Glass Workers Union 7,800 4,790
Kenya Water and Sewerage Workers Union 4,763 2,673
Kenya Union of Pre-Primary Education Teachers 1,640 890
Kenya Union of Post-Primary Education Teachers 93,200 43,000
Kenya Aviation Workers Union 2,975 725
Kenya Airline Pilots Association 450 375
Kenya Medical Practioners & Dentists Union 10,100 6,500
Kenya Private Universities Workers Union 950 730
Kenya Dock Workers Union 3,910 3,180
Kenya National Union of Teachers * 300,000 * -
Trade Union Congress of Kenya (TUC-Ke)
Union of Kenya Civil Servants 22,600 13,100
University Academic Staff Union 3,530 1,760
Kenya Universities Staff Union 2,046 396
Independent Informal Economy Unions / associations partnering with COTU (K)
Matatu Workers Association 1,810 1, 700
Women in Music Association - -
Jua Kali Traders Association 1,785 1,773
Gikomba Traders Association 800 785
Public Transport Operators Union 1,600 1,580
Matatu Workers Union 1,150 1,140
Matatu Drivers and Conductors Workers Association - -
Nairobi Bodaboda Riders Association 1,120 1,120
Kenya Tuktuk and Boda boda Workers Union 1,300 1,300
* KNUT registered 83,500 members in 2018 while as re-affiliated to COTU-K it triggered an upsurge up to 300,000 in the middle of 2019.
Source: COTU, TUC-Ke, and DTDA research.
Page 29
Table 21: List of approved labour related legislations in Kenya, 2014-2018

Type of legislation Legislation
2014
Persons Deprived of Liberty Act, 2014, No. 23 of 2014
General provisions
Statute Law (Miscellaneous) (Amendment) Act, No. 18 of 2014
Education, vocational guidance and
Kenya National Qualifications Framework Act, 2014, No. 22 of 2014
training
National Police Service (Amendment) Act, No 11 of 2014
Specific categories of workers
National Police Service Commission (Amendment) Act, No 3 of 2014
Two types of legislation: i) Elimination
of child labour, protection of children
Trans Nzoia County Youth and Women Development Fund Act (No. 2 of 2014)
and young persons, and ii) Equality of
opportunity and treatment
2015
Protection Against Domestic Violence Act, No. 2 of 2015
Ethics and Anti-Corruption Commission (Amendment) Act, 2015 (No 12 of 2015)
Special Economic Zones Act, 2015, No. 16 of 2015
General provisions Companies and Insolvency Legislation (Consequential Amendments) Act, 2015 (No 19 of
2015)
Companies Act, 2015 (No 17 of 2015)
Prohibition of Anti-Personnel Mines Act, 2015 (No 21 of 2015)
Specific categories of workers Public Service (Values and Principles) Act, 2015, No. 1A of 2015
Insolvency Act, 2015 (No 18 of 2015)
Employment security, termination of
employment Companies and Insolvency Legislation (Consequential Amendments) Act, 2015 (No 19 of
2015)
2016
Bribery Act, 2016 (No. 47 of 2016)
General provisions
Access to Information Act, 2016 (No. 31 of 2016)
Two types of legislation: i) General Political Parties (Amendment)(No.2) Act, 2016 (No 21 of 2016)
provisions and ii) Freedom of
association, collective bargaining and
industrial relations Political Parties (Amendment) Act, 2016 (No. 14 of 2016)
Employment policy, promotion of

National Employment Authority Act, 2016 (No. 3 of 2016)
employment and employment
Indigenous and tribal peoples Protection of Traditional Knowledge and Cultural Expressions Act, 2016 (No. 33 of 2016)
Mining Act, 2016 (No 12 of 2016)
Specific categories of workers
Kenya Defence Forces (Amendment) Act, 2016 (No 44 of 2016)
2017
Minimum Wage Legal Notice No. 111, Labour Institution act
Minimum Wage Legal Notice No. 112, Labour Institution act
Maternity leave Employment Act 2007, Amendment of section 29 of No. 11 of 2007, Bill No. 14 of 2017
Working conditions for breastfeeding
Breastfeeding Mothers Clauses Bill, 2017
mothers
2018
Industrial action Statute Law Miscellaneous Amendments Bill No. 12 of 2018
Source: ILO, NATLEX, Kenya and COTU (K)
Page 30
Table 22: Ratified ILO Conventions in Kenya, 2018

Subject and/or right Convention Ratification date
Fundamental Conventions
Freedom of association C087 - Freedom of Association and Protection of the Right to Organise, 1948 1964
and collective bargaining C098 - Right to Organise and Collective Bargaining Convention, 1949 Not ratified
Elimination of all forms of C029 - Forced Labour Convention, 1930 1964
forced labour C105 - Abolition of Forced Labour Convention, 1957 1964
Effective abolition of child C138 - Minimum Age Convention, 1973 1979
labour C182 - Worst Forms of Child Labour Convention, 1999 2001
Elimination of C100 - Equal Remuneration Convention, 1951 2001
discrimination in
C111 - Discrimination (Employment and Occupation) Convention, 1958 2001
employment
Governance Conventions
C081 - Labour Inspection Convention, 1947 1964
Labour inspection
C129 - Labour Inspection (Agriculture) Convention, 1969 1979
Employment policy C122 - Employment Policy Convention, 1964 Not ratified
Tripartism C144 - Tripartite Consultation (International Labour Standards) Convention, 1976 1990
Up-to-date Conventions
Working time C014 - Weekly Rest (Industry) Convention, 1921 1964
C094 - Labour Clauses (Public Contracts) Convention, 1949 1964
Wages
C131 - Minimum Wage Fixing Convention, 1970 1979
C097 - Migration for Employment Convention (Revised), 1949 1965
Migrant workers
C143 - Migrant Workers (Supplementary Provisions) Convention, 1975 1979
Social security C118 - Equality of Treatment (Social Security) Convention, 1962 1971
Rural workers and C135 - Workers' Representatives Convention, 1971 1979
industrial relations C141 - Rural Workers' Organisations Convention, 1975 1979
Vocational guidance and C140 - Paid Educational Leave Convention, 1974 1979
training C142 - Human Resources Development Convention, 1975 1979
C146 - Seafarers' Annual Leave with Pay Convention, 1976 1990
Seafarers
MLC - Maritime Labour Convention, 2006 2014
Specific categories of
C149 - Nursing Personnel Convention, 1977 1990
workers
Note: Fundamental Conventions are the eight most important ILO conventions that cover four fundamental principles and rights at work. Equivalent to basic
human rights at work.
Governance Conventions are four conventions that the ILO has designated as important to building national institutions and capacities that serve to promote
employment. In other words, conventions that promotes a well-regulated and well-functioning labour market.
In addition, there are 71 conventions, which ILO considers “up-to-date" and actively promotes.
Source: ILO, NORMLEX
Page 31
Table 23: Ease of Doing Business in Kenya, 2019

Topics 2019
Overall 61
Starting a Business 126
Dealing with Construction Permits 128
Getting Electricity 75
Registering Property 122
Getting Credit 8
Protecting Minority Investors 11
Paying Taxes 91
Trading Across Borders 112
Enforcing Contracts 88
Resolving Insolvency 57
Note: Doing Business 2019 indicators are ranking from 1 (top) to 190
(bottom) among other countries. The rankings tell much about the business
environment, but do not measure all aspects of the business surroundings that
matter to firms and investors that affect the competitiveness of the economy.
Still, a high ranking does mean that the government has created a regulatory
environment conducive to operating a business.
Source: World Bank & IFC, Ease of Doing Business 2019 in Kenya
Page 32
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convene in Kigali to strategize, 2019 28 February 2008

64 World Bank, KENYA: TRIST Brief 97 IOM, Kenya 2018 Humanitarian Compendium
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67 Chinadialogue ocean, China-Kenya tensions rise over 101 NORMLEX, R204 – Transition from the Informal to
fish as traders cry foul, 2018 the Formal Economic Recommendation, 2015 (No. 204)
68 Stop illegal fishing, China threatens Kenya over ban 102 Wages and Informality in Developing Countries,
on fish imports, 2018 2015

69 ITUC, Global Rights Index 2018 103 ILO, Five facts about informal economy in Africa,
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104 Barasa, Kenya National Hospital Insurance Fund
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71 Ligami, Christabel, Kenya Lifts Ban on Sending Reforms: Implications and Lessons for Universal Health
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72 Malit, Froilan and Youha, Ali, Kenyan Migration to 106 Kenya National Bureau of Statistics, Economic
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Worker Protection, Migration Policy Institute, 2016 107 Kenya National Bureau of Statistics, Economic
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Kenya, 2017
5%, Daily Nation, 2018 111 COTU.K Annual Narrative report 2018
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Page 34
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142 WENR, Education in Kenya, 2015 170 COTU-K Data Collection tool, 2018
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150 Kippra, Revitalizing Technical and Vocational 182 EPZA, EPZ PROGRAM
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151 Kippra, Revitalizing Technical and Vocational 184 EPZA, Export processing zones program annual
Training in Kenya performance report, 2017

152 Economic Survey 2019 185 ILO database on export processing zones (Revised),
153 Economic Survey 2019 2007
154 Economic Survey 2019 186 Export Processing Zones Program, Annual
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Page 35
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trade union rights - Kenya
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Labour Market Profile

Guaranteeing rights at work

Source: CIA, The World Factbook

The organisation is registered on United Nation’s

issues in tripartite boards mentioned above. In 2018,

Ratified ILO Conventions Trade Agreements

Labour inspectors employed by the Ministry of Labour,

HIV/AIDS constitutes a serious public health problem

30000 Strict unemployment rate is shadowed by a significant

Sectoral Employment Table 11: Wage Employment by Industry in Kenya,

-100000 Kenyan migrant workers often lack formal organisation

Most of the Kenyan child labourers work on family Gender

workforce. Other large occurrences of natural resources 14

Even though Kenya has experienced steady economic

APPENDIX: ADDITIONAL DATA

Table 21: List of approved labour related legislations in Kenya, 2014-2018

Employment policy, promotion of

Table 22: Ratified ILO Conventions in Kenya, 2018

Table 23: Ease of Doing Business in Kenya, 2019

REFERENCE Employment Relationships Complicate Implementation of

convene in Kigali to strategize, 2019 28 February 2008

while, 2019 99 IOM, Kenya 2018 Humanitarian Compendium

on fish imports, 2018 2015

the Gulf Countries: Balancing Economic Interests and Survey 2018

Status in employment, 2018 Report, 2018

Literature review, 2017 Disability in Kenya, 2018

to Kenya’s future, 2017 Social Inclusion Programme, President Kenyatta Says,

on Human Rights Practices, 2018 informal economy, 2017

Strategy Paper, 2008-2013 175 Kenya National Bureau of Statistics, Economic

International Journal of Education Administration and 2018 Statistical Update

Authority 181 World Development Indicators

Training in Kenya performance report, 2017

Sub-Saharan Africa – Kenya and Lesotho, 2013

189 RefWorld, 2011 Annual Survey of violations of

Who Cares About Human Rights?”, 2005

performance report, 2017 and ILO, Global Wage

Intimates to court over workers’ rights violations, 2018

on employee's welfare: a case of Epz tailors and textile

Authority managers suspended over Shl.3bn scandal,

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