Thirty percent of the Kenyan workforce lacks adequate skills which is affecting productivity in the country.
The World Economic Forum says the situation in Kenya is however far much better than in neighboring countries like Tanzania where more than 4 out of 10 workers are unskilled.
The report says to deal with the challenge Kenyan companies should employ automation to increase efficiency and productivity.
Unemployment in Kenya remains a thorny issue with close to 40 percent of those eligible for employment being jobless.
The situation is aggravated by the fact that more than five hundred thousand Kenyans are joining the labor market every year, with the economy creating less than 200 thousand formal jobs every year.
Last year the Kenyan economy created 800,000 jobs while the economy expanded by around 4.8 percent.
However majority of these jobs were in the Jua kali sector.
There is also another challenge facing the Kenyan labor market, lack and mis-match of skills.
‘The Future of Jobs and Skills’
The World Economic Forum says 3 out of 10 Kenyan workers lack the necessary skills, impacting productivity negatively and making the country an expensive market to do business.
The forum shows that employers in most African markets are grappling with employees who suffer from limited skills.
This makes 41 percent of all employers in Tanzania, 30 percent in Kenya, 9 percent in South Africa, and 6 percent in Nigeria unskilled.
WEF says the best way to deal with these challenges is innovation and automation.
The WEF report dubbed ‘The Future of Jobs and Skills’ says that 5 out of ten jobs in Kenya should be performed by machines.
However the automation process should be carried out with care in order not to disrupt the Kenyan labor force, the report says.