“A Globally Competitive Labour Force and a Nation with Comprehensive Social
Protection and Social Security Systems”
The Ministry of Labour and Social Protection Achievement Report for Financial Year 2024–2025 documents a year of meaningful reform, expanded coverage and improved outcomes across the Ministry’s multi-faceted mandate. The reporting period was characterized by the implementation of landmark policies, the expansion of programs that directly benefit millions of the most vulnerable
Kenyans, and the deepening of institutional and digital systems that are laying the foundation for a more comprehensive, efficient and responsive labour and social protection system. The National Employment Policy 2024, gazetted at the start of the reporting period, provides the overarching framework for Kenya’s employment promotion strategy, establishing clear targets,
coordination mechanisms and accountability structures for job creation across sectors. Implementation of the policy during 2024/25 contributed to the 3.2 per cent growth in formal sector employment and anchored the various sector-specific employment promotion programs. Critically, the manufacturing sector created 42,000 new jobs and the services sector added 58,000 positions, demonstrating the broadening economic base that is generating employment demand. Youth employment increased by 4.1 per cent, the result of targeted interventions that together reached over 380,000 young Kenyans across different entry points — from digital skills to construction to agribusiness.
The social protection architecture was strengthened significantly. Cash transfer programs reached 1.81 million vulnerable households with a combined monthly transfer value of KES 5.4 billion, representing an expansion in both coverage and impact. The Older Persons Cash Transfer now serves 1.04 million beneficiaries, approaching the target of 1.1 million and providing a critical income floor for the elderly. The graduation programme successfully transitioned 45,000 households from social assistance to economic self-sufficiency through linkage to financial inclusion and livelihood support. The
implementation of the new NSSF Act from January 2025 represented the most significant social security reform in a decade, increasing contribution rates and benefits while driving compliance to 82 per cent and expanding voluntary coverage to the informal sector. Industrial relations remained stable, underpinned by strong social dialogue institutions and proactive conciliation. The achievement of zero strike days in critical sectors including health, education and energy through the Labour Relations Conciliation and Mediation Services demonstrates the value of investing in labour relations infrastructure. The resolution of 3,248 disputes with an 87 per cent settlement rate protects workers, maintains business continuity and contributes to the economic
stability on which Kenya’s development depends. The ratification of ILO Convention 190 in October 2024 and the launch of the National Action Plan on Violence and Harassment at Work represent Kenya’s commitment to the highest international standards in protecting workers’ dignity. Digital transformation emerged as a powerful enabler of service delivery across all Ministry functions. The Integrated Labour Management Information System (ILMIS) streamlined work permit processing, OSH certification and labour inspection services. The Social Protection Management Information
System enhanced targeting accuracy and payment efficiency for cash transfer programs. The National Job Portal attracted 1.2 million registered users, transforming Kenya’s public employment services from a fragmented, paper-based system to a modern, self-service digital platform. Despite these achievements, the Ministry is candid about the considerable challenges that remain. Kenya’s informal economy — at 83 per cent of employment — represents both the Ministry’s greatest challenge and its most important frontier. The social security coverage rate of 25 per cent of the workforce means that three quarters of workers face old age, disability and work injury without formal protection. The labour inspector to worker ratio of 1:35,000 falls far short of the ILO recommended standard of 1:10,000. Youth unemployment at 22 per cent and underemployment affecting 30 per cent of the workforce mean that the labour market is not yet generating sufficient opportunities for Kenya’s rapidly growing working-age population. These challenges are addressed directly in the strategic directions for 2025–2030 articulated in Part IV of this Report.
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