KNBS 2024 Survey Reveals Sectors With Highest Employment Rates

In 2023, the economy saw significant job creation across various sectors, both modern and informal, according to the Economic Survey 2024 report published by The Kenya National Bureau of Statistics (KNBS). 

According to the report, total employment, excluding small-scale agriculture and pastoralist activities, stood at 20.0 million persons in 2023, up from 19.1 million persons recorded in 2022. 

The total number of new jobs generated in the economy in 2023 was 848,200. A notable contribution came from the informal sector, which created 720,900 new jobs, accounting for 85.0% of all new jobs.

This article delves into the specifics of job creation across different sectors, focusing on which industries contributed the most to this growth.

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Wage Employment Growth in The Modern Sector

Wage employment experienced a robust growth of 4.1%, increasing from 3,015,400 persons in 2022 to 3,138,300 persons in 2023, the Survey found. Additionally, self-employed and unpaid family workers saw a 2.6% increase in 2023, slightly down from a 2.7% increase in 2022.

Employment in the Private Sector

The private sector played a pivotal role in job creation in 2023. Leading industries in this sector included manufacturing, agriculture, forestry and fishing, wholesale and retail trade, and motor vehicle and motorcycle repair. These industries accounted for 15.9%, 14.1%, and 12.6% of total private-sector employment, respectively.

The KNBS Survey found that wage employment in the private sector increased by 3.3%. Certain industries within the private sector recorded remarkable growth rates, contributing significantly to overall employment.

According to the KNBS Survey, employment in Accommodation and food service activities increased by 27.8% primarily due to increased international arrivals and domestic tourism, resulting in higher hotel bed occupancy rates in 2023.  

Other industries that recorded significant growths were Water supply, sewerage, waste management, and remediation activities; and activities of extraterritorial organizations and bodies, at 8.1 percent and 7.1 percent, respectively.

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Industries that created the most jobs in 2023 in the private sector:

Accommodation and food service activities - 97,000

Water supply; sewerage, waste management and remediation - 6,700

Activities of extraterritorial organizations and bodies - 1,500

Administrative and support service activities - 6,700

Other service activities - 41,800

Manufacturing - 340,600

Education - 234,600

Information and communication - 145,600

Arts, entertainment and recreation - 5,600

Professional, scientific and technical activities - 68,400

Human health and social work activities - 115,500

Financial and insurance activities - 71,900

Electricity, gas, steam and air conditioning supply - 5,200

Wholesale and retail trade; repair of motor vehicles - 270,700

Construction - 226,300

Transportation and storage - 66,900

Mining and quarrying - 14,500

Agriculture, forestry and fishing - 302,400

Activities of households as employers -119,300

Real estate activities - 4,300

Total Private Sector Jobs - 2,145,500

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Employment in the Public Sector

The leading industries with the highest employment levels in the public sector were Education, and public administration and defense. These two sectors accounted for 44.9% and 34.6% of total public sector employment, respectively.

Overall, the KNBS Survey found that wage employment in the public sector increased by 5.9% in 2023 compared to the 1.6% recorded in 2022. 

In 2023, the Education sector recorded the highest growth at 10.9%, largely due to many teachers hired by the Teachers Service Commission (TSC). The Human Health and Social Work Activities sector followed, with a growth rate of 5.1%.

However, not all public sector industries saw growth. Employment in manufacturing, wholesale and retail trade, repair of motor vehicles and motorcycles, and electricity, gas, steam and air conditioning supply declined by 5.6%, 3.1%, and 1.9%, respectively.

Public Sector Jobs Created in 2023

Education - 445,400

Human health and social work activities - 53,500

Transportation and storage - 23,100

Mining and quarrying - 700

Professional, scientific and technical activities -7,000

Water supply; sewerage, waste management and remediation - 10,200

Construction - 9,700

Accommodation and food service activities - 1,700

Financial and insurance activities - 11,300

Arts, entertainment and recreation - 2,500

Agriculture, forestry and fishing - 41,900

Information and communication - 2,000

Electricity, gas, steam and air conditioning supply -16,100

Wholesale and retail trade; repair of motor vehicles and motorcycles - 2,100

Manufacturing - 21,700

Total Public Sector Jobs in 2023 - 992,800

According to KNBS, The Teachers Service Commission, the largest employer in the public sector, registered the highest employment growth of 12%. In the same period, employment in ministries and other extra-budgetary institutions grew by 3.4%, while those of county governments increased by 1.9%. 

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Employment in the Informal Sector

According to the KNBS Survey, the number of people engaged in the informal sector grew by 4.5% in 2023, generating 720,900 new jobs. 

According to the study, the leading industries with the highest employment levels in the informal sector were Wholesale and Retail Trade, Hotels and Restaurants; and Manufacturing. They employed 9,712,000 and 3,399,100 persons, respectively. 

The 2024 Economic survey puts the total number of persons employed in the informal sector at 16,685,600, of which 6,964,000 are urban dwellers and 9,721,600 working in rural areas. 

Informal jobs by sector (2023)

Manufacturing - 3,399,100

Construction - 460,900

Wholesale and Retail Trade, Hotels and Restaurants - 9,712,700

Transport and Communications - 486,400

Community, Social and Personal Services - 1,997,400

Others - 763,800

TOTAL - 16,685,600

Urban (6,964,000)

Rural - (9,721,600)