Kisumu: Kenya churns over one million youths into the labor market every year, where the government only absorbs a mere 200,000. The country is a youthful nation with more than 16 million people not in any form of employment, spiking up poverty levels.
According to Kenya News Agency, data from the World Bank shows over 3.4 million young people below the age of 35 are not engaged in any form of employment, as institutions of higher learning in Kenya produce over a million youths annually into the job market. Data from the International Labour Organization (ILO) indicates that Kenya’s unemployment rate fell to 5.40 percent in 2024 from 5.60 percent in 2023.
The Kenyan government has repeatedly emphasized its commitment to curbing unemployment through initiatives like the Hustler Fund, youth enterprise loans, and improved policies for small traders. These interventions aim to uplift ordinary citizens striving to make a living through informal businesses. The Hustler Fund is a digital financial inclusion initiative designed to improve financial access for personal, micro, small, and medium-sized enterprises (MSMEs) in Kenya.
More recently, the government introduced the National Youth Opportunities towards Advancement (NYOTA) program, a national youth initiative targeting young people across Kenya to promote employment, entrepreneurship, income generation, and youth savings and financial security. Data from the Ministry of Treasury shows that as of early February 2026, the NYOTA program has disbursed over Sh2.5 billion to more than 101,000 young entrepreneurs nationwide.
As of May 2026, data from the Cooperatives and Micro, Small and Medium Enterprises (MSMEs) Development Ministry shows over Sh83 billion has been disbursed through the Hustler Fund since its inception in November 2022. The NYOTA program, a partnership between the government and the World Bank, aims to empower 820,000 vulnerable youth with business start-up capital.
At the same time, the government’s Affordable Housing Programme has created job opportunities for many young people involved in construction, transport, supply, and small businesses around project sites. In Kisumu, some youth have benefited from these opportunities, while others continue to build livelihoods through independent hustles in the informal economy.
As unemployment continues to rise among Kenyan youth, many young people in Kisumu are turning to the informal sector to earn a living, build businesses, and support their families. From boda boda transport to mitumba trade and street vending, thousands of youths across estates such as Kondele, Manyatta, and Nyalenda increasingly rely on small-scale hustles as a source of income.
Among the most visible sectors is the boda boda industry, one of Kenya’s largest informal economic activities. The business originated in the 1990s around border towns, where bicycles were used to transport people and goods across borders. Today, the boda boda sector contributes billions of shillings to the economy annually and provides employment to more than two million Kenyans directly and indirectly.
Similarly, the mitumba business, which involves selling secondhand clothes and other items, has expanded rapidly due to the growing demand for affordable second-hand items. The sector employs over two million people and contributes roughly Sh12-28 billion annually in taxes.
Across Kisumu’s busy streets and estates, young entrepreneurs continue to shape the local economy through these informal ventures. Every morning, motorbikes roar through crowded roads as traders arrange clothes and other items along roadside stalls.
For Kennedy Ndinya, a 31-year-old boda boda rider, the journey began with a simple bicycle before he acquired a motorcycle. Ndinya says the business has enabled him to earn a living and become financially independent. He highlights challenges such as rising fuel prices, stiff competition, and unstable income as major hurdles.
Similarly, Gregory Ochieng, a 24-year-old mitumba trader, says the business has helped him build confidence and purpose. Ochieng believes access to affordable loans and capital would help expand his business. Despite the challenges, many young people in Kisumu remain hopeful about the future.
For some, hustling is a temporary stepping stone, while for others it has become a long-term career capable of transforming lives and supporting families. As evening falls across the city, Kisumu’s youth continue to push forward through determination and hard work.
