4 Major Problems Facing the Labour Market in Kenya

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Kenya is a signatory to International Labour Organization (ILO), whose major purpose was to set labour standards and major challenges there are facing the market in the country. The issues range from globalization, unemployment/underemployment, poverty, and technology advancement.

Here are 4 major challenges facing the labour market in the country.

1. Globalization

Labour is an important part of production and globalization is one of the new ways of opening local marketing to the world. Labour has been greatly affected by globalization. It is believed that one of the greatest ways to evaluate the success of globalization is by gauging its effects on poverty eradication and economic development.

Globalization has led to unfavorable competition among national players and international investors. This has therefore led to the following impacts:

• The disempowered labour market in Kenya because of opening domestic market to the world. This is realized from the concepts that have been brought by globalization which includes the introduction of casual employment, part-time work, agency work among others. The local political systems that protected its local labour have influenced negatively the labour standards and wages because of the influence from international politics.
• Widened the gap between the rich and the poor in developing country although globalization is one of the ways of empowering people. The level of trading in developed countries and developing is becoming unfavorable because of products and services that are imported from developing countries. This has therefore frustrated the realization of socio-economic rights because of increased unemployment and poverty. Many people cannot afford to live a better life, access health services, food, and good housing in the name of globalization.

2. Poverty

Poverty is another aspect that has affected labour market. This is because it has contributed negatively to economic developments. 2016 report indicated that around 35.5% of Kenya’s population is beneath the poverty line. Research which was done by the IMF-World bank revealed that poverty is one aspect that has led to poor working conditions in Kenya and has hindered the realization of social protection securities. Most workers cannot afford social programs which would have catered for their health and other needs. Poverty has also led to violations of human rights. The obligation for rational labour practices demands fair remuneration and favorable working conditions. Most Kenyans can opt to work for a dollar a day to meet their basic needs.

3. Unemployment and underemployment

The unemployment rate is increasing rapidly with many job seekers, approximately a million every year, competing for the few available jobs. This has made most Kenyans join the information sector. The sector is full of exploitation and poor working conditions and basic human rights have been threatened. The reason why the majority opt for the informal sector in developing countries is due to lack of adequate capital to venture into the formal sector. The manufacturing sector is one of the sectors that would create employment as it has been identified through the big four agenda by the Kenyan government.

4. Technology Advancement

Globalization has been recognized as an important factor of production but on the other hand, it has reduced manpower. An example is Finlays Company Kericho, which has introduced mechanical tea harvest which perform almost 98% of the work which could have been done by man.

Conclusion

Do you want to know more about the labour law market, remain compliant with labour laws, and understand the challenges that are facing the market?

Enroll in the practical labour laws course that will give you an overview of complex legal issues of the employment relationship in Kenya, and help you understand key legal provisions in employment.