Nairobi: The Kenya Private Sector Alliance (KEPSA) and the United Nations Development Programme (UNDP) have signed a Memorandum of Understanding (MoU) to implement the NextGen.Ke Youth Employment Programme, a national initiative aimed at enhancing youth employability and creating pathways into private sector jobs. The agreement was signed during the 22nd KEPSA Annual General Meeting (AGM) held in Nairobi. The event brought together senior government officials, business leaders, development partners, and youth representatives.
According to Kenya News Agency, the programme comes at a time when Kenya faces a growing youth unemployment challenge, with nearly one million young people entering the labour market annually. Implemented by KEPSA with strategic support from UNDP, the initiative seeks to connect pre-screened and work-ready graduates with private sector companies through structured 12-month internship placements. Participants will receive monthly stipends, work-readiness training, and continuous professional development support.
The pilot phase, scheduled to run between July and December 2026, targets approximately 500 graduates drawn from universities, Technical and Vocational Education and Training (TVET) institutions, and other training centres. The beneficiaries will include 250 degree holders, 150 diploma holders, and 100 certificate holders. If sustained, the programme is expected to reach more than 15,000 graduates over the next three years.
Speaking during the signing ceremony, KEPSA Chief Executive Officer Carole Kariuki emphasized the private sector’s commitment to addressing youth unemployment. She stated that KEPSA’s strategic decision in 2008 recognized youth employment as a responsibility of the private sector, highlighting businesses as market shapers and skills developers. Through the partnership with UNDP, the private sector aims to create a model linking trained young people directly to businesses where employment decisions are made.
The programme has received significant support from the Government, which allocated KSh2 billion towards its implementation in the National Budget Statement. The Government urged development partners and the private sector to back the initiative. UNDP Kenya Resident Representative Dr. Jean-Luc Stalon noted that the programme seeks to address barriers faced by young job seekers, such as the requirement for prior work experience, by complementing existing government and partner interventions.
Dr. Stalon explained that beyond internship placements, participants will benefit from structured mentorship, workplace learning, and mandatory online training modules designed to strengthen their professional skills. Employers will play a central role not only as hosts for interns but also as active contributors to skills development and talent nurturing.
The National Treasury welcomed the partnership, describing it as a significant step towards strengthening collaboration between the public sector, private sector, and development partners in advancing youth employment and economic empowerment. Dr. Chris Kiptoo, Principal Secretary for the National Treasury, reaffirmed the Government’s commitment to creating an environment conducive to investment, innovation, and job creation under the Bottom-Up Economic Transformation Agenda (BETA).
Dr. Kiptoo emphasized the need for collective action in addressing youth unemployment, noting that government efforts alone are insufficient to meet the growing demand for employment opportunities. The NextGen.Ke programme adopts a merit-based selection process and employer matching system to ensure transparency and fairness. It also provides standardized onboarding, supervised workplace learning, and continuous monitoring of participants’ progress.
The signing took place under the theme of this year’s KEPSA AGM, ‘Shaping Kenya’s Future: Private Sector Leadership in AI Governance, Strategic Investment, and Youth Employment.’ The forum reviewed the private sector’s achievements over the past year while exploring future opportunities in strategic investments, artificial intelligence governance, and youth employment. Stakeholders expressed optimism that the NextGen.Ke programme will significantly reduce unemployment among graduates while equipping young Kenyans with practical experience needed to compete in the job market.
