By Ebi Kesiena
Recent statistics from the International Labor Organisation (ILO) indicates that a staggering 80% of employed Kenyans are dealing with poverty due to inadequate wages unable to cover basic necessities.
The ILO’s latest data on working poverty paints a stark reality for about 15.3 million Kenyans, highlighting the financial hardships endured despite being part of the workforce.
Breaking down the distressing metrics, 26% of working Kenyans are classified as extremely poor, with an additional 29% and 25% categorized as moderately poor and near poor, respectively. This cumulative data underscores that a significant portion of the working population, despite being employed, faces daily challenges in meeting even the most basic needs.
The survey revealed on Friday indicates that contrary to expectations, the grim reality is that having a job in Kenya is no longer sufficient to ensure a decent standard of living.
According to the Federation of Kenyan Employers (FKE), the overall unemployment rate stands at 12.7%. Shockingly, youths aged 15 to 34, constituting 35% of the Kenyan population face an alarming unemployment rate of 67%. Recent data underscores that merely securing a job does not guarantee an escape from poverty.
Furthermore, the Federation of Kenyan Employers (FKE) has reported over 70,000 job losses in 2023. Citing unsustainable business costs post the enactment of the Finance Act 2023, which introduced a series of taxes, FKE notes that this has negatively impacted cash flows, while the increased risk of business closures has led to a surge in unemployment.
However, between October 2022 and November 2023, 3% (70,000) of jobs in the formal sector were lost, with 40% of businesses planning further workforce reductions to cope with the escalating operational costs in Kenya.
