Working But Poor: 80% Of Employed Kenyans Still In Poverty

• The ILO's latest report on working poverty reveals distressing statistics as 26% of working Kenyans are categorised as extremely poor
• The ILO's report further shows that 29% and 25% are classified as moderately poor and near poor, respectively
• The overall unemployment in Kenya is at 12.7%, and at 67 % among youths aged 15 to 34, who constitute 35% of the Kenyan population

Elijah Ntongai, a journalist at TUKO.co.ke, has more than three years of expertise in financial, business, and technology research, providing insights into both Kenyan and global economic trends.

Recent statistics from the International Labour Organisation (ILO) have shown that a staggering 80% of employed Kenyans are grappling with poverty because their wages cannot cover basic necessities.

This percentage accounts for about 15.3 million Kenyans, which paints a stark reality of the financial hardships they undergo despite being part of the workforce.

Working but extremely poor

ILO's latest data on working poverty reveals distressing metrics as 26% of working Kenyans are categorised as extremely poor.

A further breakdown reveals 29% and 25% classified as moderately poor and near poor, respectively, bringing the total percentage of Kenyans working but poor to 80%.

What working poor means to Kenyans

The grim reality now is that having a job in Kenya is not sufficient to ensure a decent standard of living.

As the statistics underscore, a significant portion of employed individuals and their families are extremely poor, facing daily challenges in meeting even the most basic needs.

Unemployment rates

The unemployment rate in Kenya further paints a grimmer picture of the financial struggles faced by Kenyans at the lower end of the economic pyramid.

According to the Federatin of Kenyan Employers (FKE), the overall unemployment in Kenya is at 12.7%.

Youths aged 15 to 34, constituting 35% of the Kenyan population, face a staggering unemployment rate of 67%.

Annually, more than one million young people join the labour market, and as underscored by recent data, getting a Job does not guarantee a path out of poverty.

Over 70,000 job losses in 2023

Earlier on TUKO.co.ke, FKE noted that the cost of doing business had become unsustainable since the enactment of the Finance Act 2023, which introduced a raft of taxes.

As a result, this has negatively impacted cash flows, increasing the risk of closing businesses, leading to unemployment.

"Every day, we receive notifications from employers to determine the impact of the increased costs on jobs. It shows that between October 2022 and November 2023, we lost 3% (70,000) of jobs in the formal sector, and 40% have reported that they are planning to reduce the number of employees to meet the increasing cost of operating in Kenya," the FKE report stated.