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LABOUR MARKET PROFILE
2015
Kenya
LO/FTF Council’s Analytical Unit
Copenhagen, Denmark
Danish Trade Council for International Development and Cooperation
Labour Market Profile 2015
PREFACE
The LO/FTF Council presents this Labour Market Profile
as a yearly updated report that provides an overview
of the labour market's situation.
This country profile presents the recent main
developments and is not an in-depth analysis.
Nevertheless, it shows a wide range of data in a
reader-friendly style. Certain key findings of this report
can be found on the Executive Summary.
The report is divided in 11 thematic sections, which
includes trade unions, employers’ organizations,
tripartite structures, national labour legislation,
violations of trade union rights, working conditions,
situation of the workforce (with subsections such as
unemployment, sectoral employment, migration,
informal economy, child labour, gender, and youth),
education (with subsection vocational training), social
protection, general economic performance, and trade.
Additionally, the reader may find, an appendix
including a list of the ratified ILO Conventions.
As indicated, the report is driven by statistical data
selection from international databanks, surveys and
reports (e.g. the International Labour Organization
(ILO), the International Trade Union Confederation
(ITUC), the World Bank, WageIndicator Foundation, the
Africa Labour Research & Educational Institute (ALREI),
etc.) as well as national statistical institutions and
ministries, and others. Moreover, narrative inputs are
collected from international news sources (e.g. The
Economist, the British Broadcasting Corporation (BBC),
LabourStart, The Guardian, etc.) together with local
sources such as trade unions centers, NGOs, local news,
the LO/FTF Council’s Sub-Regional Office, among
others.
This report also collects references from several
indexes, e.g. Global Rights Index, Doing Business Index,
Kenya 2015
the Governance Indicators, and the Human
Development Index. The indexes’ methodologies and
the data quality can be followed by the sources
websites.
All sources, indicators and/or narrative inputs that are
used are available by links through footnotes.
It is noteworthy to highlight that although most of the
statistical data is available, there were some problems
with availability and reliability of the data. In
particular, the data collection of trade union
membership, Collective Bargaining Agreements (CBAs),
women’s trade union membership and occupational
health and safety (OHS) committees are a challenge.
Therefore, used data from these abovementioned
indicators should be interpreted with some reservations.
ACKNOWLEDGEMENT
This Labour Market Profile is prepared by the LO/FTF
Council’s Analytical Unit in Copenhagen with support
from our Sub-Region Office in Tanzania as well as our
local partners in terms of data collection of trade union
membership.
All other labour market profiles of the countries where
LO/FTF Council operates are available at our website:
http://www.ulandssekretariatet.dk/content/landeanaly
ser
Should you have questions about the profiles you can
contact Mr. Kasper Andersen ([email protected]), Manager
of the Analytical Unit.
Cover photo: Carsten Snejbjerg
Editing,
design
and
layout:
Adriana
Romero
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Labour Market Profile 2015
Kenya
Labour Market Profile
EXECUTIVE SUMMARY
K
enya implemented a wide range of structural and
economic reforms during the past decade. In recent
years, the doing business environment and some
governance structures have been improved. However,
the economy has been hit by security issues as well as
weak political stability and control of corruption.
The government has set a draft called the Employment
Act (amendment) Bill in 2015. Yet the International
Trade Union Confederation (ITUC) recorded that
legislation has restrictions with regard to strike actions
and there is a lack of protection against discriminatory
measures by employers. These gaps in the legislation
make systematic violations of worker rights possible in
practice. .
The real minimum wage has increased steadily, but
remains far below the real mean nominal wage. The
latter has experienced a negative growth, though. It is
important to realize that roughly eight out of ten (79
percent) workers in the workforce operate in the
informal economy, which is not legally covered by the
minimum wages. A worrying trend is that the proportion
of workers with a formal job is decreasing while
employment in the informal economy is increasing.
Kenya had a rising middle-class during the 1990s, but
there are indications that the evolution was stalled
during the 2000s. This could be related to an economic
downturn that was provoked by currency depreciation
and a rapid increasing inflation in consumer prices
during 2008-2012. Generally, the labour productivity
was lower than the employment increase, which
suggests that the economic growth does not keep a
tempo to reduce the working poor.
The country is representing the lowest employment rate
in the East African Community (EAC). Among others, the
workers’ participation rate went through a negative
trend during the 1990s and it has stayed stable at 67
percent in recent years. In contrast, the inactivity rate
increased correspondently, reaching 33 percent in
2013. Also the unemployment rates are significant
higher than the Sub-Saharan Africa’s averages. Youth
Kenya 2015
are especially confronting massive challenges to enter
the labour market. Overall, due to structural
deficiencies, the labour market is unable to create
sufficient jobs in the formal sector just as in the informal
economy.
The education system is experiencing a fast influx of
students on all levels. However, the vocational training
sector is under-prioritized and remains underdeveloped with weak linkages between education and
training institutions.
Two out of five (39 percent) of the population are
covered by health social protection, which is relatively
high in EAC. The government is moving towards an
integrated social protection system. Both the National
Hospital Insurance Fund (NHIF) and the National Social
Security Fund (NSSF) have been undergoing reforms to
increase efficiency and to provide better coverage of
informal workers. Memberships are increasing in both
institutions. On the other hand, the sector still operates
with fragmented policies, strategies and programs. So
far, impacts of integrating the systems have been
somewhat minimal.
Employment in the Export Processing Zones (EPZ) has
been increasing. On balance, the collective bargaining
has not improved working conditions for the workers.
Many are only hired on a casual basis. In addition, the
use of temporary employment has a negative effect on
workers’ ability to unionize.
Kenya has a noteworthy high trade union density rates
relatively to other EAC countries. The trade union
movement is now challenged by an increasing
outsourcing, casualization, and in-formalization. This
confronts their ability to organize and collectively
bargain for better working conditions. In recent years,
tension increased between the Central Organisation of
Trade Unions (COTU), the ‘new’ Trade Union Congress
of Kenya (TUC-Ke) and the Government regarding
discussions about who is the most representative
national center in Kenya. On the other hand, closer
collaboration is in progress.
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COUNTRY MAP
Source: The CIA World Factbook
Kenya 2015
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TABLE OF CONTENTS
Preface........................................................................................................................................................................ ii
Executive Summary ................................................................................................................................................... iii
Country Map .............................................................................................................................................................. iv
Trade Unions .............................................................................................................................................................. 1
Employers’ Organisations .......................................................................................................................................... 2
Central Tripartite Structures ......................................................................................................................................... 3
Mediation and Arbitration ...................................................................................................................................................................... 4
National Labour Legislation ........................................................................................................................................ 4
Constitution ................................................................................................................................................................................................. 4
Trade Union Rights Violations .................................................................................................................................... 5
Working Conditions .................................................................................................................................................... 6
Workforce ................................................................................................................................................................... 7
Unemployment ........................................................................................................................................................................................... 8
Sectoral Employment ................................................................................................................................................................................ 9
Migration ..................................................................................................................................................................................................10
Informal Economy ....................................................................................................................................................................................10
Child Labour .............................................................................................................................................................................................11
Gender ......................................................................................................................................................................................................11
Youth ..........................................................................................................................................................................................................12
Education .................................................................................................................................................................. 13
Vocational training .................................................................................................................................................................................14
Social Protection ....................................................................................................................................................... 14
General Economic Performance ................................................................................................................................ 16
Trade ........................................................................................................................................................................ 18
Trade Agreements ..................................................................................................................................................................................18
Export Processing Zones (EPZ) ..............................................................................................................................................................19
Appendix: Additional Data ....................................................................................................................................... 21
Ratified ILO Conventions .......................................................................................................................................................................21
Registered Trade Union membership .................................................................................................................................................22
References ................................................................................................................................................................ 23
Kenya 2015
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Tables
Table 1: Trade unions in Kenya (2014) .................................................................................................................................................... 1
Table 2: Trade Union Centres in Kenya .................................................................................................................................................... 1
Table 3: Global Rights Index - Kenya (2015) ........................................................................................................................................ 5
Table 4: Wages and Earnings .................................................................................................................................................................... 6
Table 5: Employment rates in Kenya ......................................................................................................................................................... 7
Table 6: Inactivity rate in Kenya ................................................................................................................................................................ 8
Table 7: Comparative Average Growth of GDP per Capita, Employment and Working Age Population in Kenya ............ 8
Table 8: Unemployment rates (2013) ....................................................................................................................................................... 8
Table 9: Employment (2005) & GDP share (2012) Sector & Sex distribution ................................................................................ 9
Table 10: Migration Facts ..........................................................................................................................................................................10
Table 11: Employment in the informal economy ...................................................................................................................................10
Table 12: Share of persons employed in the informal 'sector' in total non-agricultural employment, 2003-2007, (%) .....10
Table 13: Working Children - Proportion of all Children ages 5-17 ..............................................................................................11
Table 14: Highest level attained and years of schooling in the population ...................................................................................13
Table 15: Vocational Training ..................................................................................................................................................................14
Table 16: Public spending on social protection schemes (2013) .......................................................................................................15
Table 17: Benefits, coverage and contributions to pension schemes (2009-2010) ......................................................................15
Table 18 : Key Facts on General Economic Performance (2014 est.) .............................................................................................16
Table 19: Kenya’s Ease of Doing Business .............................................................................................................................................17
Table 20: Kenya’s Governance Indicators .............................................................................................................................................17
Table 21: Trade and Foreign Direct Investment (FDI) ..........................................................................................................................18
Table 22: Ratified ILO Conventions .........................................................................................................................................................21
Table 23: Registered Trade Union membership (2014) .....................................................................................................................22
Figures
Figure 1: Real wages trend in Kenya ........................................................................................................................................................ 6
Figure 2: Participation and inactivity trends ............................................................................................................................................ 7
Figure 3: Labour Productivity ...................................................................................................................................................................... 8
Figure 4: Unemployment trends .................................................................................................................................................................. 8
Figure 5: Sector Share in Kenya (% of GDP), 2000-2013 .................................................................................................................. 9
Figure 6: Females in management and ownership (2013) .................................................................................................................11
Figure 7: Youth unemployment rates in Kenya by Age Group and Sex, (%) (1998/99-2009) ..............................................12
Figure 8: Enrolment in Primary Secondary and Tertiary schools (%) (2000-2012) Total and Female, Kenya and SubSaharan Africa .............................................................................................................................................................................................13
Figure 9: Pupils in vocational training to all pupils in secondary education in Kenya, 15-24 years old, 2001-2011 (%) .14
Figure 10: Total health-care expenditure not financed by private household's out-of-pocket payments (%), East African
countries, 1995-2011 .................................................................................................................................................................................15
Figure 11: GDP per capita growth ..........................................................................................................................................................16
Figure 12: GDP per Capita (PPP) trend and forecast.........................................................................................................................16
Figure 13: Middle-class trends in Kenya and the Sub-Saharan Africa (SSA) ................................................................................17
Figure 14: Inflation trend and forecast ...................................................................................................................................................17
Figure 15: Gross Fixed Capital Formation .............................................................................................................................................17
Figure 16: Trade and Foreign Direct Investment trends ......................................................................................................................18
Figure 17: Kenya's main export markets (2013) ..................................................................................................................................18
Figure 18: Kenya’s main products share of exports (2012) ..............................................................................................................18
Figure 19: Kenya’s performance of EPZ key indicators, 2008-2012 ..............................................................................................19
Kenya 2015
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TRADE UNIONS
The Labour Law provides for the right of workers, to
form and join unions of their choice. It includes those in
export processing zones (EPZs). Any seven or more
workers in an enterprise have the right to form a union
by registering with the trade union registrar. The
International Labour Organization's (ILO) Convention 87
concerning Freedom of Association and the Protection of
the Right to Organize has not been ratified. On the
other hand, the law covers the right of collective
bargaining to every trade union, employer’s
organization, and employer.1
The trade unions are sector based, with a few general
unions that cover several industries, such as the Kenya
Union of Commercial, Food and Allied Workers that
represents workers in varied sectors like banking, food,
retail, and financial. Civil servants are active members
of worker organizations and exercise these rights.
Kenya has an estimated trade union density at 11% of
the labour force. This is relatively high among the
neighbouring countries in East Africa, which have
between 1-3%. To point out almost one out of two
(48%) members are women in Kenya (Table 1). In
relative terms, the trade union membership rate ratio
the share of the labour force has only increased at
1.6% due to the rapid expansion of economically
active population. It is also noteworthy that one out of
three (36%) waged workers is member of a trade
union.
Table 1: Trade unions in Kenya (2014)
Number of trade unions
124
Due (median) (CWU) *
Members of trade unions
(COTU & TUC-Ke) **
Trade union members share of labour force
2%
Trade union members to waged workers
Women member share of trade unions
(COTU)
Members of affiliated trade unions from
the informal economy (Matatu Workers
Union)
Number of CBAs (2015)
Workers covered by CBAs (2013)
Share of workers covered by CBAs (2013)
Labour force (2013)2
2.3 million
11 %
36 %
48 %
1,200
135
1,113,000
6,5 %
17,239,000
* The estimation of dues (median) is based on an average of CWU's
and KNUT's dues as percent of salaries.
** The members from TUC-Ke is based on roughly estimations, see
also Table 2.
Note: The estimations of trade union shares were based on COTU &
PUSETU membership data from 2014.
Kenya 2015
A total 135 Collective Bargaining Agreements (CBAs)
are registered with the Registrar of Trade Union in
2015. Negotiations for some started as early as 2006,
but concluded and registered this year (Table 1 &
Table 2). Based on estimations from 2013, 6.5 percent
of workers are covered by CBAs. The International
Labour Union Confederation (ITUC) has noted that while
the Constitution recognizes the right of every trade union
to bargain collectively, it is not clear whether this right
can be enjoyed by members of the Prison Department,
the National Youth Service, by teachers under the
Teachers' Service Commission, and by workers in the
public sector.3
Table 2: Trade Union Centres in Kenya4
Total
Female
No. of
Trade Union
Members
Members
CBAs
Centre
(2014-15)
(2014)
(2014-15)
COTU (K) Central
Organisation of 1,608,000
771,840
124
Trade Unions
TUC-Ke Trade
Union Congress of
700,000
11
Kenya
Total
2,308,000
771,840
135
Overall, the labour market in Kenya is challenged by
an increasing outsourcing, casualization and informalization. This confronts the trade unions’ ability to
organize and collectively bargain for better working
conditions. In like manner the trade union movement has
struggled with internal fronts that came as an impact of
a new umbrella trade union - the Trade Union Congress
of Kenya (TUC-Ke) (former known as the Federation of
Public Service Trade Unions of Kenya (PASETU-K) from 2014 that rival with the Central Organization of
Trade Unions (COTU).
Central Organisation of Trade Unions (COTU)5
COTU is a trade union federation in Kenya, and it is
one of the strongest in Africa. The organization was
established in 1965 and represents 41 registered trade
unions. It is estimated that COTU and its affiliated trade
unions covers 1.6 million workers. Membership of COTU
experienced an estimated growth at 22% since 2008 in
absolute terms. The organization is also affiliate by the
International Trade Union Confederation (ITUC).
COTU is a well-established political actor on general
labour market issues in Kenya. Among others, COTU has
built close working relations with President Uhuru
Kenyatta as well as the political opposition leadership
(CORD) and therefore has a strong platform for
securing workers interests. The minister for labour was
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reportedly appointed only after consultations with
COTU.
sector. Currently, the organization has an estimated
700,000 members.
The role of COTU has focused on traditional tasks and
objectives. It has concentrated on negotiating
improvement in salaries, workplace safety, fringe
benefits and generally better terms and conditions of
employment for the workers it represents in the formal
sector.
This report has registered that five trade unions are
affiliated with TUC-Ke (Table 23), with the Teachers
Union (KNUT) and the Union of Kenya Civil Servants
(UKCS) being the founder members. During the year
2014, tension and rows increased between COTU,
PASETU-K (i.e. TUC-Ke) and the Government in
discussing about who is the most representative national
center in Kenya with the right to represent workers in
number of tri-partite forums as per the law. The
situation came brought tri-partite relations to the
freezing point. There are risks that this situation and
problems with splinter unions’ challenges unity in the
labour market movement in Kenya.
Lately, COTU has started to collaborate closely with
unions in the informal economy. Among others, to
organize in the informal economy, COTU has worked
with over nine informal economy associations with a
view to improve their organizational structures to be
aligned with COTU later as well as represent them in
national social security funds (NSSF), the Micro and
Small Enterprise Authority, among others.
During 2015 COTU has improved the relations with new
minister of labour in bi/tripartite fora such as national
social security funds, sectoral wage councils, among
others. As an illustration, COTU has lobbied for the
establishment of alternative dispute resolution structures
to relieve backlog of cases at the Industrial Court.
It is registered that the organization has increased the
training of negotiators and trainers (around 540 in
2015) with an increase of over 20 percent in new (and
renewed) CBAs have been registered in 2015.
It is also noteworthy that COTU has improved its
economic sustainability. As a result of the popular
regional trainer network, 12 percent of affiliated unions
co-finance their own training and education
programmes.
During 2015 COTU continued to promote the regional
integration agenda in EAC through public media as
part of its national advocacy strategy. The EAC agenda
was also mainstreamed into stakeholder conferences for
its social partners, internal leadership meetings and
trade union training programmes for affiliated unions.
Trade Union Congress of Kenya (TUC-Ke)
The TUC-Ke was presented in early 2014 as the
national center for public service trade unions, PASETUK. PUSETU-K was rebranded to be recognised
internationally. It was then branded as the TUC-Ke. In
the beginning the organizations had members from the
public sector, but by the brand change was also related
to open the organization’s membership from the private
Kenya 2015
In the public education and health sectors, industrial
actions continued with demands for higher salaries and
improved working conditions by the teachers and health
workers unions during 2015. Coupled with COTU
supported the action by threatening government with a
national-wide strike in solidarity with the teachers’ union
KNUT (in November the Appeal court laid a judgement
against the teachers union KNUT). This event laid the
foundation for closer collaboration between COTU and
KNUT and other unions affiliated to the new national
centre TUC-Ke.
EMPLOYERS’ ORGANISATIONS
Federation of Kenya Employers (FKE)6
FKE was established in 1959 and as of 2014 the
membership comprises of over 4,500 members both
direct and through associations that cuts across all
sectors of the economy in both public and private
sectors. The members constitute both small and large
employers. Kenya is estimated to have 35,000 large or
medium sized enterprises, constituting 2% of Kenya’s
1.7 million enterprises.
FKE has three branches – the Coast, the Rift Valley and
the Western Regions, with the headquarters in Nairobi.
It is independent of both government and political
parties. FKE is headed by Executive Director Mrs.
Jacqueline Mugo, who recently was elected
Chairperson of Business Africa (formerly the PanAfrican Employers Confederation) after having been
chairperson of the East African Employers Organisation
(EAEO).
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The overall objectives of FKE are to maintain good
industrial relations, promote sound management
practices and fair employment conditions. Maintaining
industrial relations are the core function of FKE, but it
also provides business development assistance to
members.
FKE represents employers in Kenya and functions as the
equal social partner vis-à-vis COTU. FKE is therefore
represented at most important bi/tripartite organs
dealing with labour policies, and comments on labour
legislation. The organization often leads negotiations of
collective bargaining agreements on behalf of its
member enterprises at company, industrial or sectoral
level.
In addition, FKE has been involved in programmes such
as capacity building, developing small scale enterprise,
informal economy, child labour, micro finance, youth
unemployment, HIV/AIDS at the workplace and
expanding social protection.
Since the small and informal sector has the potential to
create employment, employers’ organizations have
been recommended to view the sector as prospective
members.7
In Kenya associations of employers have been involved
in providing institutional services to informal economy
businesses. Just as the COTU, the FKE is incorporated in
the Government's Employment Policy and correspondent
strategies.8
As of 2002, FKE maintained the secretariat on behalf
of eight trade associations:
 Association of Local Government Employers (ALGE)
 Kenya Association of Building and Civil Engineering
Contractors (KABCEC)
 Distributorship and Allied Trades Association
(DATA)
 Sisal Growers and Employers’ Association (SGEA)
 Timber Industry Employers’ Association (TIEA)
 Motor Trade and Allied Industries Employers’
Association (MTAIEA)
 Agricultural Employers’ Association (AEA)
 Kenya Coffee Growers’ and Employers’ Association
(KCGEA)
In addition, seven affiliates of FKE had their own
secretariat:

Kenya Tea Growers’ Association (KTGA)
Kenya 2015






Kenya Association of Hotel Keepers and Caterers
(KAHKC)
Kenya Bankers’ (Employers) Association (KBEA)
Kenya Petroleum Dealers’ Association (KPDA)
Kenya Vehicle Manufacturers’ Association (KVMA)
Kenya National Chamber of Commerce and
Industry (KNCCI)
Kenya Association of Air Operators (KAAO)
CENTRAL TRIPARTITE STRUCTURES9
National Labour Board
The tripartite National Labour Board, advises the
Minister of Labour on labour legislation and labour
matters. The Minister of Labour also has to consult the
board, when various sensitive changes to the labour law
are made.
Wages Councils
The Wages Councils (General Wages Council,
Agricultural Wages Council and other sectoral councils),
consists of three representatives from each of the
tripartite parties, plus three independent members. The
Councils gives advice to the Minister of Labour on
matters of minimum wages and conditions of
employment in agriculture and various sectors of the
economy.
Productivity Centre of Kenya
The Productivity Centre of Kenya is a tripartite
institution that works to improve productivity,
sustainable growth and encourage better working
relationship between labour and enterprises. It gives
wage guidelines for various sectors based on
productivity, inflation, and cost of living indices. In
2013-14 the centre has been spearheading the process
of drafting the Productivity and Competitiveness Bill.
Industrial Court
The Industrial Court settles trade and labour disputes.
As part of implementing the new Kenya constitution a
reform of the Industrial Court has been passed.
Industrial Courts have so far been established in 5 out
of 47 counties and judges have been appointed. COTU
has been engaged in building the capacity of the
Industrial Court by training paralegals for presentation
of cases before the court and familiarizing the courts
functions to trade unions as well as employers. The
function of the court has been challenged by
disagreements as to whether procedures for the court
cases should be aligned with procedures in ordinary
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courts and if only employers and trade unions have
standing before the court.
The government continued to encourage a strengthened
labor dispute system, but the decisions of the industrial
court were not enforced consistently. Many employers
did not comply with the court’s reinstatement orders,
and some workers accepted payment in lieu of
reinstatement.10
Mediation and Arbitration
The Ministry of Labour typically referred disputes to
mediation, fact-finding, or binding arbitration at the
Industrial Court. The government encouraged a stronger
labour dispute mechanism, the Industrial Court dealt
with cases slowly, and the decisions of the Industrial
Court were not consistently enforced. Employers did not
always comply with the court’s reinstatement orders,
and resisted efforts to establish unions, since the
Industrial Court were ineffective in enforcing the law.
The reform (devolution) of the Industrial Court was
passed to address and solve these problems.
Other important bi/tripartite organs
o
o
o
National Economic and Social Council
Kenyan Electricity Board
National Industrial Training Council
o
National AIDS Control Council and Global Fund on
AIDS
National Social Security Fund
National Health Insurance Fund
National Advisory committee on Occupational
Health and Safety
National Tripartite Consultative Committee
Kenyan anti-corruption Board
National Bank of Kenya
Teacher Service Commission
Educational Task force
o
o
o
o
o
o
o
o
Tri-partism is also incorporated several times in the law:
If the Labour Minister interferes in a collective labour
dispute, he should consult a Tripartite Committee before
taking the decision. When the labour laws were
reformed in mid 2000s, it was done with consultation
from a tripartite taskforce, consisting of government
representatives, COTU and FKE. In addition, the
Industrial Relations Charter (1984) is a tripartite
agreement, which lays the foundation industrial
relations in Kenya.
Wage councils and several tripartite committees have
only convened on a few occasions. Several tripartite
bodies are currently not active and the Ministry of
Kenya 2015
Labour, the labour administration, the industrial court
and the labour inspection react slowly on issues and the
handling of day-to-day business is considered to be
weak, according to COTU.
NATIONAL LABOUR LEGISLATION
Constitution11
The Constitution of 2010, enshrines several labour rights
including the freedom of association, independence of
social partners, a fair remuneration, reasonable
working conditions and the right to strike. Tenets of the
Decent Work Agenda are embedded in Chapter Four,
also known as the Bill of Rights.
The Employment Act12
The Employment Act of 2007 regulates various aspects
of employment, including rights at work, working hours,
sick and maternity leave, discrimination, sexual
harassment, forced and child labour, protection of
wages, termination of employment and dispute
settlement procedure.
There is a draft Employment Act (amendment) Bill under
preparation during 2015, including no event provide
maximum hours exceeding 48 hours spread over 6
days in one week.13 In addition, it has been noted that
Kenya workers face sick pay cuts under the proposed
new law.14
The Labour Institutions Act15
Labour Institutions Act of 2007 establishes and
regulates the National Labour Board, the Industrial
Court, Committee of Inquiry, Labour Administration and
Inspection, Wage Councils and Employment Agencies.
The Labour Relations Act16
The Labour Relations Act of 2007 regulates trade
unions and employers’ organizations, collective
bargaining, strikes and lockouts, trade dispute
resolution and also recognizes the freedom of
association.
The Occupational Health and Safety Act17
Occupational Health and Safety Act of 2007 deals
with safety, health and welfare of persons employed at
workplaces.
The Domestic Workers’ Act
The Domestic Workers’ Act of 2011 improve wages
and working conditions for Kenya’s domestic workforce,
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thereby affording domestic workers greater job
security and wages to support their families.
The National Gender and Equality Commission Act18
The National Gender and Equality Commission Act of
2011 was a successor to the Kenya National Human
Rights and Equality Commission; to provide for the
membership, powers and functions of the Commission,
and for connected purposes.
The Basic Education Act19
The Basic Education Act of 2013 promotes and
regulates free and compulsory basic education; to
provide for accreditation, registration, governance and
management of institutions of basic education; to
provide for the establishment of the National Education
Board, the Education Standards and Quality Assurance
Commission, and the County Education Board and for
connected purposes.
The National Social Security Fund Act20
The National Social Security Fund (NSSF) Act of 2013
has established two new funds: a pension fund and a
new provident fund. All employers with one or more
employees are obliged to register with the new pension
fund. Membership in the pension fund is mandatory for
all employed persons between the ages of 18 and 60.
Previous fixed sum contributions has been changed and
increased to a 6% + 6% contribution, from employer
and employee. Members of the old provident fund will
be automatically enrolled in the pension fund.
Membership in the new provident fund is now voluntary
for employees covered by the pension fund.
The implementation of the NSSF Act 2013 has been
heavily disputed between the Government on one side
and COTU and FKE on the other side. Government
decided to implement the law at once, not allowing a
transition period of 5 years as agreed. This situation
has severely affected the tri-partite relations in Kenya
in 2014.
ILO Conventions
International standards, and especially ILO Conventions
ratified by Kenya, are used by the government and
courts as guidelines, even though they are not binding.
For example, the Minimum Age Convention (No. 138)
and the Worst Forms of Child Labour Convention
(No. 182) were mainstreamed into the Employment Act
in 2007. In 2014 the Maritime Labour Convention (MLC,
2006) was ratified (Table 22).
Several other legislations and acts exist, which regulate
and set standards and restrictions for the labour market.21
TRADE UNION RIGHTS VIOLATIONS
The International Trade Union Confederation (ITUC)
registered in 2015 that even though collective labour
rights are guaranteed in the legislation in Kenya, there
are restrictions with regard to strike action and there is
a lack of protection against discriminatory measures by
employers. Gaps in the legislation make ‘systematic
violations of rights’ possible in practice. On this
background, ITUC placed the country on a rating as 4
out of 5+ in 2015 (Table 3):
Table 3: Global Rights Index - Kenya22 (2015)
• Systematic violation of rights.
• Workers in countries with the rating of
4 have reported systematic violations.
4 out of 5+
The government and/or companies are
engaged in serious efforts to crush the
collective voice of workers putting
fundamental rights under continuous
threat.
Note: Five clusters in total with ratings from 1 to 5. A country is
assigned the rating 5+ by default, if the rule of law has completely
broken down.
On this background, ITUC registered two cases for the
period 2014-2015 (December):23
The first one is a company that operates in the Export
Processing Zone (EPZ), which employs more than 6,000
workers, stopped deducing union dues in violation of a
valid collective agreement in January 2014. Even
though the court ordered the company to comply with
the collective agreement, the union did not receive dues
for the month of December. Furthermore, management
stopped paying workers during sick leave and failed to
compensate workers for employment injuries and
overtime work. As a result, workers decided to call a
strike action.
The second is related to the Cabinet Secretary for
Labour, Social Security and Services publicly
intimidated unions by stating that “reduce COTU to
nothing” in April 2014. Moreover, government officials
declared that they would storm the National Labour
Day Celebrations scheduled to be held at Uhuru Park in
Nairobi if the union did not call off the May Day
celebrations.
The U.S. Department of State’s Country Reports on
Human Rights Practices for 2014 also recorded some
Kenya 2015
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Labour Market Profile 2015
violations during 2014.24 Among others, the Nairobi
County council deployed security personnel to expel
hawkers from the Globe Cinema roundabout in a
violent campaign throughout the year. County law
enforcers operated while armed with machetes, knives,
pangas, clubs, tear gas, and broken bottles to attack
the hawkers. The Kenya National Commission on Human
Rights received 20 complaints involving brutalizing of
hawkers by the security forces in the first six months of
2014.
By the same token, trade unionists have complained that
employers bribed government labor inspectors to avoid
penalties for labor violations. The low salaries and the
lack of vehicles, fuel, and other resources made it very
difficult for labor inspectors to do their work and left
them vulnerable to bribes and other forms of corruption.
Employers, in all sectors, routinely bribed labor
inspectors to prevent them from reporting infractions,
especially in the area of child labor.
Table 4: Wages and Earnings
Monthly average and legal minimum wages
Current
Shilling
Source
Global Wage
Report26
Average wages (2012)
Lowest minimum wage
(2015)
Kenya
Gazette27
Highest minimum wage
(2015)
Medium agricultural
minimum wage (2015)
Current
US$
36,067
427
10,955
120
24,720
270
6,702
73
Mean real monthly
wage (2012)
-4.8 %
Growth of real
minimum wage (20002012)
Global Wage
Report
8.7 %
Growth of real average
wage (2008-2012)
-5.8 %
Figure 1: Real wages trend in Kenya
(2000-2012), Shillings and %
35000
30%
24%
30000
The average wages has been much higher than the
minimum wages, which indicates an unequal distribution
of income in the country. An ordinary Kenyan appears
to earn around US$108 per month. A wage survey
showed that the median wage is higher in larger firms,
lower in informal economy; higher for workers with
longer education and notably with very little gender
difference. On average 58% were paid above the
minimum wage of their profession and 42% below, with
younger as well as more informal workers tending to be
paid below the minimum wage.25
Kenya 2015
20%
15%
8% 8%
7%
5%
10%
2%
0%
5%
1%
0%
10000
-5%
5000
-10%
2012
2011
2010
-15%
2009
2007
2006
2005
2004
2003
0
2008
-11%
2001
Kenya has a relatively high average wage on nominal
terms of 36,067 shillings (US$427) per month, but it has
experienced a negative growth at -5.8% in the period
2008-2012. It remains relatively high, though,
comparison with other countries in the Sub-Saharan
Africa. Calculations also show that the growth of real
minimum wage in the period 2000-2012 has been at
8.7 percent (Table 4 & Figure 1).
14%
20000
15000
25%
19%
18%
25000
2000
The government announced the increase of the minimum
wage in nominal terms by 14 percent in May 2015.
Kenya has one of the highest minimum wages in the East
African region. The lowest minimum wage (general
labourer) was set at 10,955 shillings (US$120) per
month while the highest (cashier driver and salesmendriver) at 24,702 shillings (US$270).
20%
2002
WORKING CONDITIONS
Deflated real minimum wage (% change)
Real minimum nominal wage
Real mean nominal wages
Note: The real minimum wage (% of change) is deflated into
consumer prices’ inflation.
The large segment of Kenyans labour force, which
operates in the informal economy (Table 11), is not
legally covered by the minimum wages. Only three out
of ten informal workers are paid above the minimum
wage, compared to nine in ten formal workers.
In 2012 the Ministry of Labor conducted 10,088 labor
inspections. The results of these inspections highlighted
numerous violations, e.g.: Hotel industry workers were
usually paid the minimum statutory wages, but
employees worked long hours without compensation.
Employers frequently underpaid security guards and
protective staff. Agricultural workers were underpaid
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Danish Trade Council for International Development and Cooperation
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compared with other sectors, and the ministry
established a horticulture wages industry order to
address issues affecting the floriculture sector.
Inspection forms do not include persons with disabilities,
and the ministry was addressing how to capture data
affecting such workers. The ministry was reviewing
widespread misuse of term contract employment.28
Employers and workers through their trade unions have
been encouraged by the Government to develop and
implement workplace HIV and AIDS policies, including
integrating salient provisions of the policies in CBAs.29 A
national HIV/AIDS workplace policy was also
developed in 2014 for approval by National AIDS
control Council. Notwithstanding, few interventions exist
in practice and they are limited to only a few services,
mainly condom provision and counseling. Workplace
policies are inexistent in most organizations.
public sector contributed 26,300 jobs.32 Other
estimations suggest that 232,000 new jobs are created
by the informal sector.33
The employment rate was estimated at 61 percent with
some gaps between men (66 percent) and women (56
percent) (Table 5). This is slightly lower than the SubSaharan Africa’s averages in 2013 (i.e. total at 66
percent, men at 72 percent, and women at 60 percent).
Table 5: Employment rates in Kenya34
(2013), Age and Sex distribution
Sex
Age
Men &
women
Men
There continued to be widespread hazards, such as lack
of basic safety equipment and emergency escape
routes in many companies. Violations of health and
safety conditions were found routinely in EPZs and other
sectors, such as small horticultural producers. Based on
the most recent available data, there were 6,019
industrial accidents in 2012, with 257 fatalities. Most
accidents were in the agricultural and manufacturing
sectors, while the largest number of fatalities (77) was
in transport.30
The U.S. Department of State’s Country Reports on
Human Rights Practices for 2014 also mentioned that
trade unionists continued to report a growing trend
toward the elimination of permanent positions in favor
of casual or contract labour, especially in EPZs, the Port
of Mombasa, as well as in the agricultural and
manufacturing sectors. In many cases the job was
permanent, but an employer staffed it with rotating
contract workers. This practice occurred at the
management level as well, where employers hired
individuals as management trainees and kept them in
this position for the maximum permitted period of three
years. Instead of converting such trainees to permanent
staff, they were replaced by new trainees.
Women
Employment rate
Total
15+
61 %
Youth
15-24
33 %
Adult
25+
76 %
Total
15+
66 %
Youth
15-24
36 %
Adult
25+
83 %
Total
15+
56 %
Youth
15-24
30 %
Adult
25+
69 %
The participation rate - i.e. working-age population
that engages actively in the labour market – passed
through a declining trend during the 1990s and the
beginning of the 2000s; and has stayed at around 67
percent in recent years. Youth has a similar trend, but
has been a more deeply decreasing, and stayed flat at
40 percent since 2005. As a contrast the inactivity rate
- i.e. working-age population that is not engaged
actively in the labour market, either by working or
looking for work - increased (Figure 2).
Figure 2: Participation and inactivity trends35
80%
70%
60%
50%
40%
30%
20%
WORKFORCE
Kenya’s total population is 43.2 million, while the
workforce covers 17.2 million workers. Each year
800,000 persons enter the job market, competing with
50,000 jobs in the formal sector.31 The formal sector
recorded 116,800 new jobs in 2013 out of which the
Kenya 2015
10%
0%
1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013
Participation - 15+
Inactivity - 15+
Participation - 15-24
Inactivity - 15-24
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Danish Trade Council for International Development and Cooperation
Labour Market Profile 2015
Overall, the inactivity rate was measured at 33 percent
in 2013 and at 61 percent among youth. There is a
gap among men and women (Table 6).
Table 6: Inactivity rate in Kenya36
(2013), Total and gender
Inactivity Rate
Inactivity Rate, Youth
Total
Men
Women
33 %
28 %
38 %
61 %
57 %
64 %
Equally important is that the labour productivity is
relatively low with a weak evolution. In comparison it
remains to stay far below the Sub-Saharan Africa’s
average (Figure 3).
104
102
100
15,000
94
93
10,000
90
5,000
- 0.7 %
- 0.6 %
0.0 %
2009-13
- 0.5 %
- 0.5 %
0.1 %
2004-13
- 0.6 %
- 0.6 %
0.0 %
Note: The columns above reflect: i) GDP per capita/employment
equals GDP per worker (i.e. labour productivity); ii) GDP/WAP equals
GDP per capita; and iii) employment/WAP equals the employment
rate (ratio of workers to working-age population (15+)).
Unemployment
95
90
Table 8: Unemployment rates39 (2013)
110
108
20,000
2004-08
The unemployment rate was measured at 9.2% in 2013
and has been stable since 2005. Female’s
unemployment rate was estimated at 11% and men’s at
8.1%. Youth unemployment has also been stable at
17% since the 1990s; and the share of youth
unemployed in total unemployed decreased from 49%
in 1992 to 38% in 2013 (Table 8).38 These
unemployment rates are significantly higher than the
Sub-Saharan Africa’s averages (Figure 4).
Figure 3: Labour Productivity
(1992-2012), GDP per person engaged in US$ and labour
productivity indexed year 1990 (=100)
25,000
Table 7: Comparative Average Growth of GDP per Capita,
Employment and Working Age Population in Kenya37
(2004-2013), % change on average
GDP/
GDP/
Employment/
Years
employment
WAP
WAP
105
100
93
92
90
91
Total
Youth
Total
9.2 %
17 %
Men
8.1 %
17 %
Women
11 %
17 %
85
0
80
Kenya
World
SSA
Kenya - year 1990 (=100)
Note: Kenya’s output per unit is based on the GDP constant 1990 US$
in Purchasing Power Parity (PPP) while the Sub-Saharan Africa (SSA)
and the World’s output per worker were set at constant 2005
international US$. This could to some degree underestimate Kenya’s
labour productivity relative to the SSA/World’s averages’.
With this is mind, the labour productivity (GDP per
worker) growth was negative at –0.6 percent on
average over the same period 2004-2013. As a
manner of fact, the employment rate growth on
average stayed flat at 0 percent relatively to the
working age population (WAP) growth in the period
2004-2013 (Table 7). This indicates that the labour
productivity is not creating a sufficient economic growth
that can support the employment rate’s evolution.
Stated differently, Kenya‘s employment rate remains
higher than the GDP per capita growth which makes it
difficult to keep a tempo that can reduce working poor.
Note: Youth are defined by the International Labor
Organization as individuals between the ages of 15 to 24
years.
Figure 4: Unemployment trends40
(2000-2013), Kenya and the Sub-Saharan Africa (SSA), %
19
17
15
13
11
9
7
5
Unemployment rate (Kenya)
Youth unemployment rate (Kenya)
Unemployment rate (SSA)
Youth unemployment rate (SSA)
The large youth unemployment rate is related to a
long-term population changes, e.g. young Kenyans are
Kenya 2015
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Danish Trade Council for International Development and Cooperation
Labour Market Profile 2015
moving from rural to urban areas in large numbers.
Albeit there has been some increase in urban formal job
creation, it has been far below the demand. It is
important to realize that the urban areas have not only
been unable to generate sufficient jobs in the formal
sector, but also many cannot readily find an adequate
occupation in the informal economy. This suggests that
the labour market is suffering from a structural
fragmentation. This could be demonstrated by data
that show that the proportion of workers with a formal
job decreased from about 13% in the early 1970s to
9% in 2010.41
The weak job creation in Kenya keeps many workers in
poverty. For example, unemployment rates are
consistently higher for young people belonging to
households in the bottom 40 percent of income
distribution.42 Also education level is central in terms of
unemployment, e.g. the youth high unemployment rate is
related to lower education levels. At least, only 1.5
percent of the unemployed youth have formal
education beyond the secondary school level.
The Kazi Kwa Vijana (KKV) program was launched in
2009 that aimed at annually employing between
200,000 and 300,000 young people in rural and
urban areas in labour-intensive public works projects.
Since the launch of the KKV initiative, there has been
little direct support to the program by outside
development partners and hampered by corruption.
Sectoral Employment
Table 9 shows considerable contrasts in the amount of
GDP generated in different industries, compared to the
number of people employed in these industries. The
sectors that are male dominated also have higher
contribution to GDP, relative the number of workers in
these sectors. Whether these sectors also have the best
paid workers, depends on the sectors capital intensity
and the distribution of wages.
Agriculture remains the backbone of the Kenyan
economy, contributing 30 percent of GDP. At least 75
percent of agricultural output is from small-scale, rainfed farming or livestock production. And this sector
employs 61 percent of Kenya’s workforce. Thus,
agriculture is the largest sector in Kenya. In recent
years, especially the tourism sector has been negatively
affected by security issues.
Table 9: Employment (2005) 43 & GDP share (2012) 44
Sector & Sex distribution
Male
employment
Female
employment
GDP share
per sector
872
255
0.8 %
Manufacturing
330,653
118,183
10 %
Electricity, gas
and water
18,581
3,440
1.4 %
Construction
295,390
5,697
4.7 %
796,359
937,188
13 %
360,430
36,545
10 %
95,338
42,148
12 %
992,656
806,564
17 %
3,535,092
4,169,458
30 %
Sector
Mining and
quarrying
Trade,
restaurants and
hotels
Transport and
communications
Finance, real
estate and
business services
Public
administration
and Services
Agriculture
In addition, 2.1 million workers are wage employees.
And regular wage employment is thus relatively low.
With a growth at around 5 percent annually of wage
employment do not curb the high influx of workers on
the labour market. And, as already mentioned in Table
7, the GDP per capita growth has not superseded the
employment rate.
In the last decade, Kenya has experienced some
sectoral shifts: The sector share of agriculture
diminishing from 32 percent of GDP in 2000 to 25
percent in 2008, but rebounded and is now 30 percent
of GDP. Since 2008, the industry and service sector
shares reduced and are now at 20 percent and 51
percent, respectively (Figure 5). However, industry has
experienced some expansions, e.g. the information
communications technology (ICT) is one of Kenya’s
fastest growing business sectors.
Figure 5: Sector Share in Kenya (% of GDP), 2000-201345
60
50
40
30
20
10
0
Agriculture
Kenya 2015
Industry
Services
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Kenya has both a better developed industry sector than
its East-African neighbours and a more skilled
workforce. However, the country’s workforce is also
reported to have limited specialized skills. 46 COTU is
advocating for skills mapping and recommends that a
skills development levy should be combined with making
training of workers compulsory.
Migration
Kenya receives more remittances in comparison with the
Sub-Saharan Africa. Despite this trend, the net
migration has decreased significantly. The period
2006-2010 had a net migration at -189,330 persons
which now is -50,000 in period 2008-2012, i.e. 1 out
of 4,094 Kenyans migrated per year, which is half of
the amount of Sub-Saharan Africa’s average.
The government launched a crackdown in September
2014 on rogue employment agencies as a measure to
restrain the exploitation and abuse of its migrant
workers in Gulf countries.47 The government revoked the
licenses of 930 agencies recruiting Kenyans to work in
the Middle East.
Kenya
SubSaharan
Africa
Table 10: Migration Facts48
Net
Net
migration to
Migration
average
(2008-12)
population
(2008-12)
-1 : 4,094
- 70,000
Inhabitants
- 1,524,836
-1 : 2,048
Inhabitants
Informal Economy
An estimated 79 percent of total non-agricultural
employment is in the informal economy (Table 11).
Other data from 2011 suggests that 82 percent of
Kenya’s workforce is in the informal economy, with 12
percent in formal private employment and 6% in formal
public employment.50 Most new jobs are created in the
informal economy, crowding out jobs in the formal
sector. Another noteworthy observation is that
employment in the informal economy is increasing.51
A survey rated workers on an informality scale from 15, with 1 being workers not entitled to social benefits,
who do not contribute to social security and with no
contract. It shows that 44 percent are in the two most
informal categories and 23 percent in the most formal
category. The survey also showed that the informality
index correlates age, with more young people in
informal employment as well as correlates wages, with
more than double the median wage at very formal
employment compared to very informal, and youth is
particularly over-represented.52
Table 11: Employment in the informal economy53
Persons employed in the
non-agricultural informal
sector
Remittances
received, %
of GDP
(2012)
Share of persons
employed in the nonagricultura l informal
sector
Kenya (2007)
7.5
million
Kenya (2007)
79 %
Sub-Saharan
Africa (2001)
78%
3.0%
2.4%
Net migration is the total number of immigrants less the annual
number of emigrants, including both citizens and noncitizens.
The labour migration leads to brain-drains. For
example, many physicians and other health care
workers do, migrate to developed countries, leading to
a shortage of skilled workers in this sector.49
Another aspect is that under-development in western
Kenya has made many workers moving towards the
urban zones. Due to remittances this migration plays a
key role in developing rural areas. Another key point is
that migrant workers often are short of formal
organization and consequently missed the benefits of
collective bargaining.
It was estimated that the informal sector is absorbing
about two-thirds of annual new employment
opportunities in Kenya.54 To point out the share of
persons employed in the formal economy has
experienced a growth during the 2000s (Table 12).
Table 12: Share of persons employed in the informal
'sector' in total non-agricultural employment, 2003-2007,
(%)55
80%
79%
79%
78%
79%
78%
77%
77%
76%
76%
75%
74%
2003
2004
2005
2006
2007
In recent years, both employers’ and workers’
federations have found more interest of the informal
economy as new membership recruitment. 56
The
Kenya 2015
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informal workers are becoming organized into
associations, cooperatives, and, to some extent, unions.
There are eleven umbrella associations/unions
representing informal workers in Kenya. The
associations represent more than 600 informal sector
groups. Several informal sector unions are collaborating
with COTU even though not yet being affiliated.
There are a series of challenges of taxing enterprises in
the informal economy, e.g. mistrust and weak structural
dialogue between informal sector and government as
well as tax evasion and corruption as normal way of
doing business.
There is a lack of protection for children performing
non-contractual work. Kenya also has not yet adopted
a draft list of hazardous work prohibited to children or
committed sufficient resources to enforcement efforts.
On the other hand, a national child labour policy was
passed by the National Labour Board and approved
by the cabinet in 2014.
Gender
As previously indicated, 54 percent of agricultural
workers are women. Only 29 percent of those are
earning a formal wage throughout the country are
women, leaving a huge percentage of women to work
in the informal sector without any federal support.
Child Labour
The data on child labour are not consistent due to
different methodologies and time periods, but it could
indicate a drop in child labour. The latest data is from
the 2006 with Kenya Integrated Household Budget
Survey’s (KIHBS) Child Labour Analytical Report,
revealing one million or 5.3 percent children in
employment. On the contrary the Multiple Indicator
Cluster Survey (MICS) revealed that 26 percent of
children engaged in labour in 2000. Two later studies
showed 14 percent child labours in Kenya’s Eastern
Province in 2008 and 6.4 percent in Mombasa in 2009,
but that is not necessarily representative of all Kenya.
There are other reasons to believe that child labour has
dropped. Kenya re-introduced free and compulsory
primary education in 2003, which are reported to
successfully combat child labour, and according to the
KIHBS children in employment aged 5-18 years also
has declined from 1.9 million in 1999 to 1.01 million in
2006.
Table 13: Working Children - Proportion of all Children
ages 5-17
Propor
Region
Source
Year
Type
tion
Kenya
MICS57
2000 Child labourers
26 %
Children in
Kenya
KIHBS58
2006
5.3 %
employment
Children in
2004
26 %
employment
Children in
28 %
employment
SSA
SIMPOC59
2008 Child labourers
25 %
Hazardous
13 %
work
Children in employment include all children who conduct some kind of
work, whereas child labourers are a narrower term without mild forms
of work. Hazardous work is the worst from of child labour as defined
in ILO C182.
Kenya 2015
In general, women have less education than men, but
with a smaller difference than neighbouring countries
Women’s lower levels of education are a barrier to
running their own farms as well as obtaining betterpaid jobs on commercial farms.60
ILO has noted a need for increased gender equity in
trade union membership and leadership levels, and
strengthening inclusion in social partners is a priority
area. COTU has set the goal of having 30 percent
female trade union leaders. COTU is collaborating with
the trade union confederation for the East African
Community EATUC, to promote gender equality, both
within the labour movement and in Kenya. 61
The workplace has traditionally been male dominated,
especially at higher management levels where policy
issues are discussed. However, women's voice is
gradually becoming more and more heard.62
A 2013 Enterprise Survey from the World Bank
reported that 49 percent of firms had female
participation in ownership, which is higher than the SubSaharan Africa's average at 36 percent.
Figure 6: Females in management and ownership63 (2013)
60%
50%
40%
30%
20%
10%
0%
Firms with female top manager
Kenya
Firms with female participation in
ownership
Sub-Saharan Africa
Lower income
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Danish Trade Council for International Development and Cooperation
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Currently, the government is establishing the National
Gender and Equality Commission (NGEC) through the
enactment of the National Gender and Equality
Commission Act from 2011.64
Youth
In 2012 youth aged 15 to 24 years accounted for less
than 19 percent of total employment, whereas they
made up over 35 percent of the working-age
population. As such, the youth employment rate, at 33
percent, is less than half the adult employment rate and
one of the lowest in the region. The youth bulge has a
frail entrepreneurship culture and the inactivity rate for
people aged 15 to 24 years reached 61 percent in
2012, which is an increase at 5% points since 2000
alone.65 The labour market has simply not been able to
take in sufficient job opportunities of the increasing
labour force of about 800,000 youths leave school
each year and begin looking for jobs, annually.66
According to national census data, it is noteworthy that
young females' unemployment rates have dropped
significantly and reached males' rates. On the other
hand, the youth inactivity rate, which is a measure of the
proportion of a country’s 15-24 working-age
population that is not engaged actively in the labour
market, either by working or looking for work, has been
on an increase and remained high at 61 percent in
2013.67 Youth female inactivity rate is higher than male
at 64 percent vs. 57 percent in 2013, respectively.
Figure 7: Youth unemployment rates in Kenya by Age
Group and Sex, (%)68 (1998/99-2009)
40%
35%
30%
25%
20%
15%
10%
1998/99
2005-06
2009
Age 15-19 (male)
Age 20-24 (male)
Age 15-19 (female)
Age 20-24 (females)
According to a UNDP study from 2013, the transition
from school to a job is not automatic in Kenya. People
struggle to get a job. Despite the rising number of
Kenya 2015
young people finding informal jobs, the proportion of
young people searching for a job also rises rapidly. The
proportion of unemployed people rises steadily from 3
percent to 23 percent between 15 and 20 years of
age.69
The Government operates with a National Youth Policy
that was adopted in 2006, followed by a Strategic
Plan (2007-2012). Both will be renewed. Among others,
the current Policy encouraging the establishment of
agricultural production and cottage industries in rural
areas to promote informal sector employment as well
as promote skills development of the youth through
vocational training and imparting life skills. As a
member of the Commonwealth of Nations, Kenya is also
a signatory of the Commonwealth Plan of Action for
Youth Empowerment (PAYE) 2006-2015.
In 2014 the responsibility of Youth Development and
Empowerment Services was transferred from the
Ministry of Youth Affairs to the Ministry of Devolution
and Planning, which sits under the Office of the
President.
The National Youth Council of Kenya coordinates youth
activities and organizations along with supporting the
national youth policy. The institution does not have an
operational budget, though.
The Youth Enterprise Development Fund (YEDF) financed
over 157,000 youth enterprises and contributed to
create over 300,000 jobs in five years.70 But, an
analysis of YEDF concluded that most youth have not
been properly informed on how the fund can be
accessed as well as low repayment rates. Moreover,
there are lacked monitoring of the activities and
capacity building is insufficiently addressing gender
imbalances.71
Many youth have become discouraged and have begun
to leave the labour market entirely. On this
background, the COTU (K) called the attention that the
youth seeking employment abroad due to the high
youth unemployment rate, and the risk ending up in
slavery and servitude despite assurance from some
government officers and a clique of unscrupulous
employment agents and bureaus.72
Forbes Africa recently released a list of Africa’s 30
best entrepreneurs under 30 years old. It is notably that
7 out of the 30 entrepreneurs are Kenyan.73
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EDUCATION
Population in Kenya has an average of almost seven
years of schooling. Very few Kenyans have completed
secondary school or university. The graph in Table 14
shows the educational attainment of all Kenyans above
25 years, therefore gives a glance of the human capital
of the labour force.
Table 14: Highest level attained and years of schooling in
the population74
(2010), Population 25+, Total and Women
Highest Level Attained
Total
Women
16.2 %
20.5 %
Begun
4.5 %
5.5 %
Completed
50 %
53.9 %
No Schooling
schools, but fewer in higher education. Rural families
were more reluctant to invest in educating girls than
boys, particularly at higher levels. Between the ages of
12 and 14, girls generally dropped out of school at a
higher rate than boys due to the lack of sanitary
facilities at schools and a general family preference to
focus limited resources on the education of sons.75
Though there are some missing data in the educational
data for Kenya and Sub-Saharan Africa, there are still
notable trends.
Figure 8: Enrolment in Primary Secondary and Tertiary
schools (%) (2000-2012) 76 Total and Female, Kenya and
Sub-Saharan Africa
Net Enrolment in Primary School
Primary
Begun
25.6 %
17.8 %
Completed
0.6 %
0.4 %
Begun
1.2 %
0.7 %
2%
1.2 %
Secondary
Tertiary
Completed
Kenya,
Female
enrolment
Kenya,
Total
enrolment
SSA,
Female
enrolment
SSA, Total
enrolment
90
85
80
75
70
65
60
55
Average year of total schooling
6.95 years
6.21 years
50
Net Enrolment in Secondary School
Total
55
Kenya,
Female
enrolment
50
45
Kenya,
Total
enrolment
40
Female
35
30
0%
20%
40%
No Schooling
Primary - Completed
Secondary - Completed
60%
80%
Primary - Begun
Secondary - Begun
Tertiary - Begun
100%
Primary, secondary and tertiary is the internationally defined
distinction of education. In Denmark these corresponds to
grundskole, gymnasium& university.
SSA,
Female
enrolment
25
20
SSA, Total
enrolment
15
10
Gross Enrolment in Tertiary School
Women in general have less education than the total
population, yet they have completed primary education
more than the rest. More females have no schooling and
fewer females have reached secondary or tertiary
education.
9
8
7
6
5
4
Kenya has successfully implemented free and
compulsory primary education through age 13, which is
reflected by higher net primary school enrolment rate
than the rest of Sub-Saharan Africa, and very little
gender difference in Kenya. The data for enrolment
rates reflect the same pattern as with years of
schooling, where slightly more females are in primary
Kenya 2015
3
2
1
0
Kenya,
Female
enrolment
Kenya,
Total
enrolment
SSA,
Female
enrolment
SSA, Total
enrolment
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Kenya’s free primary education is constrained by
insufficient school infrastructure, overcrowding in schools,
late or non-disbursement of funds by some development
partners, regional enrolment disparities and the
devastating impact, which HIV has had on the sector.77
Vocational training
Kenya’s education system has placed emphasis on the
formal academic education. Currently there are about
748
Technical,
Industrial,
Vocational
and
Entrepreneurship Training (TIVET) institutions and is
ambitiously pursuing a policy that will set up at least
one polytechnic in each county in an effort to train more
artisans. However, only 350 of the youth polytechnics
receive Government assistance. The private sector
operates close to 1,000 commercial colleges that offer
courses in computers and non-technical areas of
training.78
the situation and limits their chances of fully
participating in the formal sector. On this background,
ILO has argued that there is a weak linkage between
education and training institutions and industry in
development of curricula just as an absence of
integrated industrial training and attachment programs.
Moreover, there is a gap between the level of
technology used by industry and those used by the
education and training service providers to undertake
training.81
Figure 9: Pupils in vocational training to all pupils in
secondary education in Kenya, 15-24 years old, 2001-2011
(%)82
9%
8%
7%
6%
5%
4%
According to the graphs in the previous section, Kenya
has a considerable higher enrolment in secondary
education than the rest of Sub-Saharan Africa. Few of
the pupils in secondary education are in vocational
training, though. Almost 10 times less Kenyans are in
vocational training in comparison with the Sub-Saharan
Africa's average (Table 15 & Figure 9). This has
affected the quality and productivity of many sectors
that need technical capacity and knowledge. Especially
youth are affected when they entering the labour
market. Actually many developing countries lack
vocational training and it explains part of the structural
reasons for high youth unemployment.
Table 15: Vocational Training79
Pupils in vocational training
Kenya
(2009)
15,672
Kenya
58 %
Sub-Saharan
Africa
40 %
Ratio of pupils in vocational
student to all pupils in
secondary education
Kenya
0.8 %
Sub-Saharan
Africa
7.6 %
Ratio of pupils in vocational
training out of 15-24 year
olds
Kenya
0.2 %
Sub-Saharan
Africa
2.0 %
Pupils in vocational training
(women) (2009)
Kenya’s ratio of pupils in vocational training to all pupils in
secondary education were calculated on average for the period
2006-2009, while the Sub-Saharan Africa region is an average of
the period 2008-2011.
The 15-24 year olds are calculated as an average in the period
2005-2015.80
According to ILO, at least 92 percent have no
vocational or professional skills training which worsens
Kenya 2015
3%
2%
1%
0%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Kemya
Sub-Saharan Africa
The low share of vocational training is not
counterbalanced by higher tertiary education; in fact
Kenya has fewer students enrolling in universities than in
Sub-Saharan Africa.
The pupils in vocational training peaked in 2008 of
close to 30,000 students in 2008, but the number of
pupils plummeted at 47 percent, reaching only around
16,000 pupils in 2009. It is also interesting to note that
women have a higher vocational rate at 58 percent in
comparison to the Sub-Saharan Africa’s average that
was estimated at 40 percent (Table 15).
Non-formal TVET sector has been neglected by the
government. The sector has been generally left to civil
societies organizations and few target groups are
reached.
SOCIAL PROTECTION
Kenya has traditional (informal) and formal social
protection systems. While coverage is high for the
formal sector (98 percent), coverage of the informal
sector remains low at 16 percent of the informal sector
population.83 A National Social Protection Policy was
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approved in 2012.84 The government is moving towards
an integrated social protection system.
Around 39 percent of the population is covered by
health social protection. It is also observed that the
government’s expenditure in health has been on a
decline at -2.5 percent per year in the period 20072011. Kenya has also a low health-care expenditure
not financed by private household's out-of-pocket
payments in comparison with the neighbouring countries
in the East Africa countries (Table 16 & Figure 10)
salaried workers and can be joined voluntarily by
informal workers. Around 1.1 million informal ‘sector’
workers were covered by NHIF in 2014. 87
Figure 10: Total health-care expenditure not financed by
private household's out-of-pocket payments (%), East
African countries, 1995-201188
90%
85%
80%
75%
70%
65%
Table 16: Public spending on social protection schemes85
(2013)
Kenya Shilling
Public social
protection
expenditure, excl.
health
US$
% of GDP
per capita
% of government
expenditure
Public health care
Health social
protection coverage
Trends in government
expenditure in health
36 billion
431
million
0.9 %
9.6 US$
60%
55%
50%
45%
40%
1995 2000 2005 2006 2007 2008 2009 2010 2011
Burundi
Tanzania
Kenya
Uganda
Rwanda
5.5 %
% of GDP
2.3 %
% of population
39 %
% changes per
year (2007-2011)
-2.5 %
Government spending was largely directed to Civil
Service Pensions. All government employees can claim
retirement at 60 years old onwards. Around 16 percent
are active contributors to pension schemes, which is close
to double as high than the average in the Sub-Saharan
Africa’s average (Table 17).
Table 17: Benefits, coverage and contributions to pension
schemes86 (2009-2010)
The National Social Security Fund (NSSF) protects
members – both from the formal and informal ‘sector’ –
against poverty and vulnerability at old age. This fund
has 4.6 million active and inactive members as per
2010. It covers 1.1 million salaried employees,
100,000 employers, and 57,000 self-employed.
Around 1,175,000 workers from informal sector are
reported to be members of NSSF. NSSF has also many
non-contributing members. The institution has been
criticised for giving low retirement benefits and for 77
percent of funds being absorbed by administration
costs, giving both employers and employees incentive to
stay out of the NSSF.89
Impacts have been somewhat minimal due to
fragmentation of policies, strategies and programs. The
government launched in January 2015 a Social
Protection Week to come up with an action plan to
improve synergy and reduce mismanagement of funds.
Safety nets programs are implemented by different
public, private or NGO agencies. They tend to have
few beneficiaries, with a median size of 120,000
beneficiaries per program. Safety nets cover a
maximum of 27 percent living below the Kenyan
poverty line. The other types of safety nets than relief
and recovery are programs and projects with specified
targeted beneficiaries, in the domains social cash
transfer, health, education, and agriculture. Spending
on safety nets doubled, rising from 11.9 billion shillings
in 2005 to an estimated 36 billion shillings in 2013. This
is due to a rapid increase in spending on social cash
transfer programs since 2009.90
There is a wide range of health related interventions,
e.g. the National Hospital Insurance Fund (NHIF)
provides hospital cover for members and their
dependants. It has 3.3 million members as of 2010, with
about 7.5 million dependants. NHIF is compulsory for
There are three active labour market programs as well
as a wide range of social empowerment programs and
devolved funded programs. Many of these initiatives
are scattered and with a low coverage Social
protection programs have basically no focus on
Social benefits for the active
age
Active contributors to an ole
age pension scheme
Health expenditure not
financed out-of-pocket by
private households
Kenya 2015
% of GDP
0.1 %
Age 15-64
16 %
% total
(public and
private)
54 %
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Danish Trade Council for International Development and Cooperation
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challenges of the social status of the elderly and the
traditional elder care arrangements.91
GENERAL ECONOMIC
PERFORMANCE
Kenya has the largest economy in the East Africa
Community (EAC) region, based on a strong private
sector, and is much more dynamic than other regional
member countries. In 2013 the country’s was placed
among a low-middle income country. The Gross
Domestic Product (GDP) grew by 5.3 percent in 2014
(Table 18).
Despite the GDP per capita growth, the country has
experienced a growing gap in the GDP per capita
growth in Purchasing-Power Parity (PPP) relative the
rest of Sub-Saharan Africa during the 2000s (Figure
12). This aspect is related to an very high rise in asset
prices, which is associated boom in economic demand is
considered a result of the extended period of easily
available credit, inadequate regulation and an
increasing inequality.
Figure 12: GDP per Capita (PPP) trend and forecast
(2002-2018), Current US$
5,000
4,500
4,000
On the positive side, the GDP per capita growth in
Kenya has been higher than the Sub-Saharan Africa’s
average in recent years, but has experienced a more
fluctuated trend (Figure 11). The recession in 20082009 was related to the global financial crisis. The
precarious financial situation in Kenya was made more
difficult by a sharp increase in oil and food prices
(Figure 14).
Figure 11: GDP per capita growth
(2000-2014), Kenya and the Sub-Saharan Africa, % of GDP
8
6
4
2
0
-2
2,000
Kenya
2018
2017
2016
2015
2014
2013
2012
2011
1,500
2010
48 of
141
countries
A high ranking on the Ease of Doing Business Index means the
regulatory environment is more conducive to the start-up and
operation of a local firm.95
The Human Development Index (HDI) measures the average of a long
and healthy life, access to knowledge, and a decent standard of
living.
This Gini Index’s ranking: The first country has the highest inequality,
while the number 139 has the highest equality.
147 of 187
countries
2,500
2009
42.5
2008
0.535
3,000
2007
Gini
Index
(2008)
2006
108 of 189
countries
Human
Development
Index94
2005
5.3 %
Doing
Business93
(2015/16)
2004
60.9
billion
GDP real
growth
2003
GDP
(US$)
3,500
2002
Table 18 : Key Facts on General Economic Performance92
(2014 est.)
Sub-Saharan Africa
Kenya has less working poor rates than the SubSaharan Africa’s averages: Based on somewhat
outdated data, an estimated 24 percent were living
below US$1.25 a day and 53 percent under US$2 in
1997; and stayed well below the Sub-Saharan Africa's
averages that were set at 56 percent and 75 percent,
respectively. Today, in 2013, the Sub-Saharan Africa’s
averages still remain higher than Kenya’s average from
1997.
At the same time it is observed that the middle-class in
Kenya is larger and growing faster than the SubSaharan Africa’s averages. In 2010, 28 percent of
Kenyans lived for US$2-4 a day and 17 percent for
US$4-20 a day, compared to Sub-Saharan Africa’s
average at 14 percent and 10 percent, respectively.96
In the noteworthy to mention that Kenya’s middle class
did not either get pushed back into poverty due to the
global financial crisis in 2008-2009, but appears to
grow, which is indeed the case for many other emerging
market countries. However, the high inflation rates
during 2010-2012 threatened this segment's real
income.
-4
Kenya
Kenya 2015
Sub-Saharan Africa
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Labour Market Profile 2015
Figure 13: Middle-class trends in Kenya and the SubSaharan Africa (SSA)
(1992-2005), percent
40%
30%
that getting credit scores very high (28 out of 189
countries) due to a very high increase in comparing with
the ranking from last year (Table 19). The latter is
related to a relatively high strength of legal rights,
credit information, and some credit bureau coverage.
This Index has been
especially in terms
undervalued paying
can still be used
reservations.97
20%
10%
0%
1992/93
1994/96
1997/99
Middle class US$2-4 (Kenya)
Middle class US$2-4 (SSA)
2005
Table 19: Kenya’s Ease of Doing Business98
Middle class US$4-20 (Kenya)
Middle class US$4-20 (SSA)
As mentioned, in 2011 there was a drastic currency
depreciation and rapid increasing inflation. The
economy experienced stability and a deceleration of
inflation since 2013. Inflation stood at 7.5 percent in
2014 (Figure 14).
Figure 14: Inflation trend and forecast
(2002-2018), Kenya and Sub-Saharan Africa, percent
20%
controversial due to flawed data,
of labour market flexibility and
taxes. However, the table below
as indicative measurement with
Topics
2016 2015 Change
Starting a Business
151
148
-3
Dealing with Construction Permits
149
152
3
Getting Electricity
127
141
14
Registering Property
115
121
6
Getting Credit
28
118
90
Protecting Minority Investors
115
114
-1
Paying Taxes
101
99
15%
Trading Across Borders
131
131
No change
10%
Enforcing Contracts
102
102
No change
Resolving Insolvency
144
145
5%
Kenya
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
0%
Sub-Saharan Africa
The capital formation has followed the Sub-Sahara
African countries’ average on a somewhat more
fluctuating trend (Figure 15).
-2
1
Doing Business indicators are ranking from 1 (top) to 189
(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 or
that affects the competitiveness of the economy. Still, a high
ranking does mean that the government has created a
regulatory environment conducive to operating a business.
21
The governance environment has experienced some
improvements. Especially rule of law along with the
governance effectiveness registered advances. As a
contrast, the political stability rating has not improved
and remains on a very low ranking, i.e. 9 percent; just
as control of corruption is ranked at 16 percent (Table
20).
19
Table 20: Kenya’s Governance Indicators99
(2009-2014), Score & Percentiles, and Change
Figure 15: Gross Fixed Capital Formation
(2000-2013), Kenya and Sub-Saharan Africa, % of GDP
23
Voice and
Political
Government
Accountability
Stability
Effectiveness
-0.34 /
-1.43 /
-0.60 /
2009
36%
10%
33%
-0.16 /
-1.27 /
-0.30 /
2014
42%
9%
43%
Regulatory
Control of
Year
Rule of Law
Quality
Corruption
-0.13 /
-1.05 /
-1.08 /
2009
48%
16%
12%
-0.34 /
-0.45 /
-0.94 /
2014
42%
38%
16%
Note: The Governance Indicators score from ‐2.5 to 2.5 while the
percentiles rank from 0 (lowest) to 100 (highest).100
Year
17
15
Kenya
Sub-Saharan Africa (all income levels)
The 2015 Doing Business report ranks Kennya at 108
out of 189 countries. The country scores low on most of
the ten indicators, especially on starting a business (151
out of 189 countries), dealing with construction permits
(149), and resolving insolvency (144). It is noteworthy
Kenya 2015
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TRADE
According to the Economic Complexity Index, Kenya is
ranking 80 out of the 124 countries; making it one of
the better performing countries in the Sub-Saharan
African region.101
construction on a transport corridor and oil pipeline into
the port of Lamu in 2014.
Figure 17: Kenya's main export markets (2013) 104
EU; 21%
Others;
36%
The country plays an important role in East Africa as a
regional centre for trade and finance. Agricultural
products are the majority of the country’s export (Figure
18). And the country's main export market is EU, but
also exports a lot to its neighbours in the EAC (Figure
17). The country is importing double than export (Table
21).
Uganda;
13%
Egypt; 4%
Table 21: Trade and Foreign Direct Investment (FDI)102
(2014 est.)
Exports
US$
10
billion
16 % of
GDP
Imports
US$
20
billion
34 % of
GDP
FDI flow
(average 2010-14)
360
million US$
0.6 % of GDP
FDI Stock
US$
3.9
billion
6.4 % of
GDP
Pakistan; U.A.
Emirates; United
5%
States; 7%
6%
Figure 18: Kenya’s main products share of exports
(2012)105
Tea ;
21%
Other;
52%
In terms of the Foreign Direct Investment (FDI) inflows in
leading African economies, Kenya is a low performer.
The country’s FDI ratio was estimated at 1 percent of
GDP while it was less than half of the African average
of 2.5 percent, and even worse in comparison to
neighboring Sudan (2.8 percent) and Tanzania (4.8
percent) (see also Figure 16).103
Figure 16: Trade and Foreign Direct Investment trends
(2000-2014), % of GDP
Tanzania;
9%
Cut
Flowers;
13%
Legumes;
3.8%
Refined
Petroleum
; 3.9%
Coffee;
5.9%
45
40
35
Trade Agreements
30
Kenya is part of the EAC, which also includes Burundi,
Rwanda, Tanzania & Zanzibar and Uganda. The EAC
free trade agreement from 1999 contains a labour
provision with cooperation on employment and working
conditions with an emphasis on gender equality and
discriminatory law and practices. Likewise, the labour
provision of the COMESA agreement extends to
cooperation on employment conditions and labour
law.106
25
20
15
10
5
0
Export (Kenya)
Import (Kenya)
FDI (Kenya)
The real appreciation of the Kenyan currency has
eroded the competitiveness and shifting the export
sector (Figure 16). Other challenges in Kenya include
the underdeveloped infrastructure and lengthy shipping
times. On the other hand, Kenya, in collaboration with
Ethiopia and South Sudan, intended to begin
Kenya 2015
In 2005 the EAC established a customs union and in
2010 the EAC agreed to establish full common market
with free movement for workers, goods, services and
capital.
Kenya is also part of the 2000 Cotonou Agreement
between EU and African, Caribbean and Pacific (ACP)
countries, which reaffirms commitment to ILO’s
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Fundamental Conventions and includes a labour
provision on cooperation on various labour and social
issues.
Freedom of association and collective bargaining is
protected in the EAC common market in the sense that
an EAC migrant worker has equal rights as a
national.107The free movement of labour within the EAC
opens up questions of how to achieve equal
opportunities and equal social and labour rights for
migrant workers, for example if workers can bring
pensions with them across borders. On the other hand,
the free movement of labour is also a source of concern
in some of the EAC countries, as the countries workforces
have differences in productivity and educational level.
However, the actual implementation of the economic
integration have slowed down the last few years
especially with regards to lifting barriers to trade and
free movement of labour. Although formal tariffs are
increasing abolished, trade is still challenged by nontariff barriers and corruption.
The objective of the East African trade union movement
is to safeguard workers’ interests in the EAC, ensure that
ILO standards are upheld and member states’ labour
policies are harmonized and the tripartite model is
institutionalized, while the free movement of labour is
promoted. The trade union movement has reached
observer status in the EAC in 2009, and along with
employers’ organizations they participate in ministerial
summits, sectoral summits, and other summits that involve
labour market issues. However, the EAC council of
Ministers responsible for Labour has not been convened
since 2010.
Through the EAC, Kenya can export duty and quota
free to EU since 2008, and will have to gradually
remove duties and quotas from EU exports to Kenya on
most products, except the products deemed to need
protection from EU imports. These include agricultural
products, wines and spirits, chemicals, plastics, wood
based paper, textiles and clothing - the products which
dominates Kenya’s exports to EU.
The EAC commits Kenya to adopt measures to the free
movement of persons and labour from the other five
member states. Kenya has abolished work permit fees
for EAC citizens, but rejection rates on work permit
applications are still reported to be high. For migrants
from other countries an entry permit is granted if the
foreigner is of benefit to Kenya, and an employer who
employs a foreigner must submit a report to the
authorities.
Kenya 2015
Since 2001, Kenya has benefitted from the United
States’ African Growth and Opportunity Act (AGOA),
which is a Generalised System of Preferences. It allows
duty and quota free access for some products.
Export Processing Zones (EPZ)
Kenya has 41 EPZs, with around 36,000 employees
contributing with 7 percent of national exports,108
mainly within the sectors of clothing/garments
manufacturing, pharmaceuticals, and processing of
tea.109 Around 54 percent of EPZ exports go to the
United States under the AGOA.
Figure 19: Kenya’s performance of EPZ key indicators,
2008-2012110
38000
30
28
36000
25
24
21
34000
20
19
20
32000
15
30000
10
28000
5
26000
0
2008
2009
2010
2011
Total EPZ employment
Number of EPZ approved projects
2012
Prior to 2005, the Kenyan government did not allow
EPZ workers the freedom to unionize or engage in
collective bargaining. It produced strikes during the
2000s. Due to reforms all labour laws, including the
right to organize and bargain collectively, apply in the
EPZs. However, labour standards are often worse in
EPZs.
The Factories Act deals with the health, safety and
welfare of an employee, who works in a factory.
Notable examples are that many exemptions to the
labour law are made, for example with a law that
prevents women from working in industrial activities at
night. Most firms, based in EPZs, have still refused to
recognize trade unions and obstructed their efforts to
organize workers. The Kenya Textile Workers'
Federation adds that getting workers to join a union is
difficult because the managers at EPZ companies use
nonregistered organizations to recruit casuals on their
behalf.111
A study from 2013 also investigated the effect of trade
unions on employee's welfare with a specific focus on
EPZ Tailors and Textile Workers Union affiliated
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Labour Market Profile 2015
companies in Athi River. The study revealed that
collective bargaining has affected employees' wages
and benefits positively.112 It is estimated that wages
within the zones on average are 22% higher than
minimum wage. Although the average wage in Kenyan
EPZs is lower than in many other African zones, it is still
higher than in Asian countries, such as Bangladesh,
China, and India.
Kenya 2015
The collective bargaining has not improved working
conditions for the workers within the Kenyan EPZs have
put up with long hours, unpredictable work, and many
are only hired on a casual basis. In addition, the use of
temporary employment has an effect on workers’
ability to unionize. Union membership of workers within
the EPZs has remained low, i.e. an estimated 14% of
workers were unionized.113
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APPENDIX: ADDITIONAL DATA
Table 22: Ratified ILO Conventions114
Subject and/or right
Convention
Ratification date
Fundamental Conventions
Freedom of association
and collective
bargaining
Elimination of all forms
of forced labour
Effective abolition of
child labour
Elimination of
discrimination in
employment
C087 - Freedom of Association and Protection of the Right to Organise, 1948
1964
C098 - Right to Organise and Collective Bargaining Convention, 1949
Not ratified
C029 - Forced Labour Convention, 1930
C105 - Abolition of Forced Labour Convention, 1957
C138 - Minimum Age Convention, 1973
C182 - Worst Forms of Child Labour Convention, 1999
C100 - Equal Remuneration Convention, 1951
C111 - Discrimination (Employment and Occupation) Convention, 1958
1964
1964
1979
2001
2001
2001
C081 - Labour Inspection Convention, 1947
C129 - Labour Inspection (Agriculture) Convention, 1969
C122 - Employment Policy Convention, 1964
C144 - Tripartite Consultation (International Labour Standards) Convention, 1976
1964
1979
Governance Conventions
Labour inspection
Employment policy
Tripartism
Not ratified
1990
Up-to-date Conventions
Working time
Wages
Migrant workers
Social security
Rural workers and
industrial relations
Vocational guidance and
training
Seafarers
Specific categories of
workers
C014 - Weekly Rest (Industry) Convention, 1921
C094 - Labour Clauses (Public Contracts) Convention, 1949
C131 - Minimum Wage Fixing Convention, 1970
C097 - Migration for Employment Convention (Revised), 1949
C143 - Migrant Workers (Supplementary Provisions) Convention, 1975
C118 - Equality of Treatment (Social Security) Convention, 1962
C135 - Workers' Representatives Convention, 1971
C141 - Rural Workers' Organisations Convention, 1975
C140 - Paid Educational Leave Convention, 1974
C142 - Human Resources Development Convention, 1975
C146 - Seafarers' Annual Leave with Pay Convention, 1976
MLC - Maritime Labour Convention, 2006
1964
1964
1979
1965
1979
1971
1979
1979
1979
1979
1990
2014
C149 - Nursing Personnel Convention, 1977
1990
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.
As of January 2012, the International Labour Conference had adopted 189 Conventions and 201 Recommendations. Moreover, Kenya has so far
ratified 49 ILO Conventions, 6 of which have been denounced.115
Kenya 2015
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Danish Trade Council for International Development and Cooperation
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Table 23: Registered Trade Union membership (2014)
Trade Union
Amalgamated Union of Kenya Metal Workers
Kenya Petroleum Oil Workers Union
Bakery, Confectionery Manufacturing & Allied Workers Union
Kenya Building, construction, Timber, Furniture & Allied Trades Employees Union
Kenya Chemical & Allied Workers Union
Kenya Engineering Workers Union
Kenya Game Hunting & Safari Workers Union
Kenya Union of Printing, Publishing, Paper Manufacturing & Allied Workers
Kenya Plantation & Agricultural Workers Union
Kenya Scientific, Research, International, Technical & Allied Institutions
Banking Insurance & Finance Union
Communications Workers Union (CWU)
Railway Workers Union
Tailors & Textiles Workers Union
Transport & Allied Workers Union
Kenya Union of Entertainment & Music Industry Employees
Kenya Union of Domestic, Hotels, Educational Institutions, Hospitals & Allied
Workers
Kenya Union of Sugar Plantation Workers
Kenya Local Government Workers Union
Kenya Shipping, Clearing & Warehouses
Seafarers Workers Union
Kenya Quarry & Mine Workers Union
Kenya Electrical Trades Allied Workers Union
Kenya Shoe & Leather Workers Union
Kenya Jockey, Betting Workers Union
Union of National, Research Institutes
Kenya National Private Security Workers Union
Kenya Salon and Beauty Union
Kenya Hotels & Allied Workers Union
Kenya Union of Commercial, Food & Allied Workers
Kenya Aviation and Allied Workers Union
Kenya Union of Journalists
Kenya Long Distance Truck Drivers and Allied Workers Union
Kenya National Union of Nurses
Kenya Glass Workers Union
Kenya Water and Sewerage Workers Union
Kenya Union of Pre-Primary Education Teachers
Kenya Union of Employees of Voluntary and Charitable Organizations
Kenya Union of Post-Primary Education Teachers
Kenya Aviation Workers Union
Kenya Airline Pilots Association
Kenya National Union of Teachers
Union of Kenya Civil Servants
University Academic Staff Union
Universities Non-Teaching Staff
Dock Workers Union
Matatu Workers Union
Women in Music Union
Jua Kali Traders Union
Gikomba Traders Union
Kenya 2015
Affiliation
to trade
union
centre
Total
Members
(2014)
Female
Members
(2014)
COTU
COTU
COTU
COTU
COTU
COTU
COTU
COTU
COTU
COTU
COTU
COTU
COTU
COTU
COTU
COTU
7,572
1,021
22,002
16,888
7,425
35,600
6,020
5,979
315,550
21
6,401
4,224
643
243,090
4,175
245
572
234
3802
473
425
600
20
780
160,050
3
2403
2096
100
198,200
294
15
COTU
270,328
135,192
-
COTU
COTU
COTU
COTU
COTU
COTU
COTU
COTU
COTU
COTU
COTU
COTU
COTU
COTU
COTU
COTU
COTU
COTU
COTU
COTU
COTU
COTU
COTU
COTU
TUC-Ke
TUC-Ke
TUC-Ke
TUC-Ke
TUC-Ke
193,887
33,635
4,558
720
12,000
24,645
3,654
392
855
120,535
5,000
1,497
56,715
958
118
2,865
30,000
5,240
8,015
2,100
110
9,153
N/A
N/A
181,200
68,587
4,658
4,848
5,681
1,200
N/A
N/A
N/A
67,120
12,877
1,486
180
1,000
8,245
654
92
350
25,578
4,145
257
13,481
235
50
135
21,568
1,900
2,250
1,920
43
3,303
N/A
N/A
96,238
29,097
2,708
2,807
978
N/A
N/A
N/A
N/A
-
Independent
Independent
Independent
independent
Dues
2% of
salary
-
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Danish Trade Council for International Development and Cooperation
Labour Market Profile 2015
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