Chief Executive Officer of Equity Group Holdings, Dr. James Mwangi, has said that Kenya’s economic growth is not creating enough jobs for the country’s growing number of university graduates.
In an interview with Bloomberg Television, Dr. Mwangi explained that although Kenya is among the fastest-growing economies in Eastern and Central Africa, the rate of job creation is still too low to meet the needs of young people finishing school.
“Kenya is benefiting from the tailwinds of the Eastern and Central African region being the fastest growing, but it’s not creating enough opportunities to match the students graduating from the universities,” he said.
Kenya’s economy grew by 4.7 percent in 2024, a slowdown from the 5.7 percent recorded in 2023. The drop in growth was mainly caused by weaker performance in the agricultural sector and reduced activity in the private sector. However, experts believe the economy will recover in 2025, with growth expected to reach 5.3 percent.
“So, you can see the economy is still in good state when you compare that with the global GDP growth rate,” Dr. Mwangi said, pointing out that even with the recent slowdown, Kenya’s growth remains higher than the global average.
But the Equity boss stressed that economic growth alone is not enough, especially if it does not translate into real opportunities for ordinary citizens.
“What we need now is to channel that growth into productive investments and job creation,” he said.
He said the private sector must take the lead in addressing unemployment and creating decent work for the youth.
“There is need to continue improving the investment environment,” he said. “There’s an opportunity to look at incentives for private sector investment and to focus on consistency in policies.”
Dr. Mwangi noted that the government must provide stable and predictable policy direction, which will help build investor confidence and encourage more private sector participation in the economy.
Kenya, like many African countries, has a fast-growing young population. Thousands of students graduate from universities and colleges every year, but many of them struggle to find jobs. This has led to high youth unemployment and underemployment in both rural and urban areas.
While the Kenyan government has introduced several youth empowerment programmes, analysts say more needs to be done to support the private sector, especially small and medium-sized enterprises (SMEs), to create more jobs.
Dr. Mwangi also pointed out that improving the investment environment means more than just offering tax breaks. It involves addressing issues such as access to finance, affordable energy, infrastructure, and regulatory reforms that make it easier to do business.
He believes that with the right policies in place, the private sector can drive long-term inclusive growth that benefits more people across the country.
Equity Group Holdings, which operates one of the largest banking networks in East Africa, has been a strong supporter of youth empowerment and entrepreneurship. Through its various programmes, the bank has helped young people gain access to business loans, training, and mentorship.
Mwangi’s comments come at a time when African leaders and policymakers are under increasing pressure to tackle unemployment, poverty, and inequality.
As Kenya prepares for the 2025 economic cycle, the focus is now shifting from headline growth figures to how that growth can be used to reduce joblessness and improve living standards.
Many observers agree that meaningful job creation, especially for the youth, is key to maintaining political stability and sustaining long-term economic progress.
