27 Nov 2023

In an era defined by rapid technological advancements, economic transformations, and evolving job landscapes, understanding the skills demanded by the workforce is crucial for individuals, employers, and policymakers alike. The Federation of Kenya Employers (FKE) in partnership with the Africa Digital Media Institute (ADMI), and Nexford University, have collaboratively launched a comprehensive report shedding light on the changing demands for skills in Kenya's workforce; FKE Skills Needs Survey ReportThe report is a comprehensive analysis of current and future skill requirements, which provides valuable insights into the dynamic nature of the Kenyan job market.

 

 

The survey, designed to capture the changing demands for skills, specifically targeted FKE members across diverse sectors, with a robust participation of 521 enterprises. The enterprises under study showcased a demand for skills in various career fields – Information Technology (28.4%), Finance & Business Management (27.4%), Engineering (19.2%), Transportation, Distribution & Logistics (18.6%), and Legal (18.2%).

 

 

"With technological changes, the labour market dynamics are evolving faster than ever and the mismatch between workers' skills and those required by available jobs has become a top priority policy concern. As such, many employers report difficulties finding suitably skilled workers, even though the unemployment rate is high.”  said Federation of Kenya Employers (FKE) CEO, Jacqueline Mugo.

 

The predominant educational qualifications sought by these enterprises were undergraduate (Bachelor’s) degrees (43.8%) followed by Technical and Vocational Education and Training (TVET) (34.9%).

 

 

"This report sheds light on the critical intersection of education and industry needs. As we navigate the evolving demands of the workforce, it is imperative for educational institutions, businesses, and policymakers to collaborate in shaping an agile and skilled workforce that can drive innovation and sustainable economic growth," said Dr. Laila Macharia, the CEO and co-founder of ADMI.

 

The top TVET skills in demand were in transport and logistics (21.3%), electrical (21.1%), and building and construction (18.2%). Within the engineering sector, computer and software engineering (30.7%) led the list, followed by electrical and electronics engineering (27.4%) and mechanical and production engineering (25%).

 

Social skills such as effective communication (49.1%), critical thinking (41.7%), teamwork (25.7%), and time management (23.4%) were identified as crucial by the surveyed enterprises.

 

A noteworthy 73.1% of the studied enterprises utilized training to bridge the skills gap, often in collaboration with other organizations in the capacity-building space.

 

The survey highlighted that 20% of enterprises faced hard-to-fill vacancies, leading some to employ applicants with qualifications below their initial requirements (9.6%). Industries like manufacturing reported the highest difficulty in filling positions.

 

“We’re delighted to launch this report today in partnership with FKE and ADMI, it helps move us one step closer to integrating employers within the future of education in Kenya. ”, Fadl Al Tarzi, CEO of Nexford University.

 

Reasons for non-employment or staff retention challenges included a lack of qualified candidates in the local region (29%) and high salary expectations from candidates (26%). Consequences of skills deficits included inhibiting business expansion (25%), loss of revenue (24%), and a decline in customers or market share (21%). Enterprises addressed the skills gap by training existing employees (48%) and hiring new staff from the Kenyan job market (27%).

 

The education level demanded by enterprises varied across career fields, with secondary education mainly sought in public safety, corrections & and security (4.8%) and arts and recreational services (3.1%). 

 

TVET skills were in demand in transport, distribution & logistics (26.5%), social service and community development (13.2%), and hospitality and tourism (11.1%). Undergraduate degree qualifications were mostly sought in information technology (50.5%), finance business management (48.4%), and legal professions (36.5%).

 

The survey also shows that 39.3% of enterprises had plans to make their products/services more climate/environmentally friendly. Concrete changes were implemented due to standards/requirements or expectations related to a green shift (26.1%), and 25.7% anticipated an increase in enterprise services/products as a consequence of the green shift. Leadership competence (34.2%) and skilled worker competence (33.4%) were identified as  essential for the green shift.

 

 

The Skills Needs Survey Report serves as a compass for navigating the complex terrain of the modern job market. It illuminates the skills that will be in high demand, urging individuals to invest in both technical and soft skills. As the workforce continues to evolve, embracing a mindset of continuous learning and adaptation is key to thriving in the face of unprecedented changes. FKE, through the report, challenges individuals, employers, and educators to collaborate in shaping a future workforce that is agile, resilient, and well-equipped for the challenges and opportunities that lie ahead.

SKILLS NEEDS SURVEY REPORT -  https://www.fke-kenya.org/sites/default/files/downloads/Skills%20Needs%20Survey%20Report%20-2023_0.pdf