REPUBLIC OF KENYA

CABINET MEMORANDUM ON YOUTH EMPLOYMENT SCHEME ABROAD

MINISTRY OF YOUTH AFFAIRS & SPORTS AND MINISTRY OF LABOUR

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INTRODUCTION Joint Draft Cabinet Memorandum on the establishment of a Youth Employment Scheme Abroad framework submitted jointly by the Minister for Youth Affairs and Sports and Minister for Labour.

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OBJECTIVE OF THE MEMORANDUM

2.1

The objective of this Memorandum is to apprise the Cabinet and request for approval of the proposed structure of Youth Labour Migration through adoption of a Youth Employment Scheme Abroad (YESA) framework.

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BACKGROUND INFORMATION

3.1

The world is currently facing a growing socio-economic crisis characterized by general unemployment, underemployment and rampant poverty. According to the International Labour Organisation (ILO) Global Employment Trends Report of January, 2009 indicates that in 2008, an estimated 6.0 % of the workers in the world were not working but looking for a job, up from 5.7 % in 2007 .

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This is especially worrying for the young men and women who may get trapped into lifetime of weak attachment to the labour market alternating between low paid and insecure work and outright unemployment

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Unemployment is one of the most daunting challenges facing Kenya today. By 2000, Kenyas economy was at its lowest point since independence, with 56 percent of the population living in poverty and a negative growth rate of 0.2 percent. This economic environment inevitably had a destructive impact on the social fabric of the country.

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Despite this gloomy picture however, the economic growth experienced in the period 2003-2007 has given grounds of optimism, even though it did not exactly correspond to job creation and gainful employment to match the high rate at which youth join the labour market

3.5

To address youth problems and more specifically unemployment, efforts have been made by the Government to initiate youth development programmes through various policy documents such as: Sessional Paper Number 2 of 1992 on

Small Scale and Jua Kali Enterprises, Development Plan 1997-2001, Sessional Paper Number 4 of 2005 and the Poverty Eradication Plan 1999-2015, among
others. These policy documents outline preventive as well as curative policies, to curb the unemployment problem especially among the youth.

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However the greatest challenge faced while implementing them, is the high population growth rate among the youth; for instance, according to Gender data sheet 2008 projections, by 2007 35% 0f the population were young people

between the ages of 15-35 entering job market; this exerts pressure on the limited available resources.

3.7

In order to address specifically the youth concerns in the country, the Government created the Ministry of Youth Affairs (now Ministry of Youth Affairs and Sports) in December, 2005 that aims at maximising the full potential of the young people through participatory engagements that serve their needs and aspirations in nation building.

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Further to this fact, the Government placed job creation at the top of policy agenda and mooted the idea of establishing a Youth Enterprise Development Fund Board in mid 2006 as one of the bold and radical interventions to address the Youth unemployment problem.

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Youth Employment Scheme Abroad (YESA) was identified as one of the strategies of the Youth Enterprise Development Fund Board, geared towards economically empowering Kenyan youths by facilitating them to work abroad so that they too can participate in nation building.

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These bold steps are supposed to assist the Government achieve the Vision 2030 , a road map aimed at putting the country on the path to economic prosperity by creating an environment for wealth and job creation.

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ANALYSIS OF THE PROBLEM

4.1

Young people in Kenya today live in a complex and challenging times, undoubtedly the most acute challenge is the inability to access gainful and decent employment. Lack of employment can lead the youth into antisocial behaviour such as crime and drugs.

4.2

According to recent statistics from Kenya National Bureau of Statistics (KNBS), in Kenya Facts and Figures 2008 booklet, it is shown that 79.5 % of the Kenyan population is below 34 years of age. Further it is projected, in the very near future, a higher youth population because 43.3% of the population is now below 15 years, by 2012 there will be about 16 Million youths between 18-35 years and by 2017, about 24 Million.

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The Kenyan youths not only constitute the majority of the work force but they are also hardworking and educated. It is therefore important to focus on them as they are potential drivers of the economic development in our country, being future investors, managers and captains of industries. Young people may lack experience but they are highly motivated and capable of offering new ideas or insights.

4.4

The Government faced with the task of providing employment opportunities to an estimated, over 750, 000 Kenyan youths who join the labour market every year, is in the process of implementing a Youth Employment Marshal Plan with the

strategic objective of creating more than 500,000 new employment opportunities (formal, informal and self employment) for Kenyan youth per year.

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The Government has also announced Kazi Kwa Vijana Programme (KKV), which is a short term programme of six (6) months to be implemented between March 2009 and August 2009 aimed at empowering young Kenyans in the food deficit areas to be employed and earn money for feeding families.

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Despite the many efforts to implement policies to cater for the youth development and unemployment, there is still limited impact due to the high youth population growth rate and poor coordination among Government Ministries, Youth Organisations and International Agencies which sometime results in duplication of efforts.

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Undoubtedly it would be reasonable at this stage to take advantage of other economies that are in deficit of skills currently available in Kenya. A number of world economies, such as Philippines and India have benefited considerably by capitalizing on export of skills to ease the unemployment in their countries.

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According to Philippine Government statistics, more than 9.1 million Filipinos currently reside and work abroad. From 1990 to 2001, official recorded remittances alone averaged 20.3 percent of the country's export earnings and 5.2 percent of GNP, providing a lifeline for many families. The Government's goals have been clear on the support of Migration for temporary work via regulated

channels. Similarly, the Indian Diaspora remits $ 27 billion according to data collated by the World Bank in recent years.

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In comparison, the total Kenyan Diaspora Worldwide is estimated at two million people, and it has played an important role in the development of the country through remittances, believed to be close to $ 1 billion per annum, a significant amount compared to the official GDP of approx $ 22 billion in 2006.

4.10

For international employment to have meaningful and positive impact on the economy there is need for a legal framework that formalizes the inter-ministerial and private sector linkages.

4.11

Currently, Kenya has no comprehensive legal and regulatory framework on Labour Migration. The current labour laws do not adequately address the issues on labour migration; for example the Employment Act, 2007 only provides for attestation and the Labour Institutions Act, 2007 provides for accreditation of private employment agencies.

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OPTIONS ON THE WAY FORWARD

5.1

The Youth Employment Scheme Abroad (YESA) framework is a structured approach for export of skills that serves to provide facilitation for international employment of Kenyan youths between the ages 18-35 until such a time a bill on the same is formulated.

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This will create employment not tied to the national economic growth and have multiplier effects through remittances and transfer of technologies.

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For labor migration to be a smooth process, the Government has to play a supportive and regulatory role throughout. The framework will operate through a structure headed by a Policy Organ comprising Permanent Secretaries of Labour, Finance, Youth Affairs and Sports, Foreign Affairs, Immigration, Constitutional Affairs and any such Ministry that the policy organ may consider appropriate, with the role to provide advice and advocacy for the implementation of the scheme.

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YESA framework seeks to provide for inter-ministerial linkages through a onestop-shop concept. This will be undertaken through YESA secretariat and Ministerial Youth Desk Officers on key Ministries. On acquisition of international employment appropriate documentation will be fast tracked so as to make the process smooth.

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The framework structure also provides for a Technical Steering Committee on Youth Employment Scheme Abroad (STC), as a standing Committee to oversee and advise on the Youth Labour Export.

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Thus, it is in view of the above mentioned scenario that the Cabinet is requested to approve and implement the Youth Employment Scheme Abroad (YESA) framework that would address the needs of Kenyan youths aspiring to migrate for

employment purposes, which will in turn effectively facilitate their involvement in the social and economic development of the country.

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FINANCIAL IMPLICATION

6.1

The Youth Employment Scheme Abroad is one of the objectives of the Youth Enterprise Development Fund Board. The Board has within its budget allocated a vote of 77 Million during the 2008/09 FY for the Youth Employment Scheme Abroad. The program will not occasion additional public funding as it will be met from the already voted funds for program.

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Provision of public funding for the youth labour migration will be within the context of youth loaning, in accordance with the loaning procedures of the Youth Enterprise Development Fund Board.

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RECOMMENDATIONS TO THE CABINET

The Cabinet is requested to take note of the contents of this memorandum the Minister for Youth Affairs & Sports and the Minister for Labour, and:7.1 Approve the draft Youth Employment Scheme Abroad (YESA) framework.

by

7.2

Direct the Minister for Youth Affairs and Sports, and other relevant government agencies to put in place the necessary structures to enable operationalisation of the YESA Framework.

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Direct the Ministers for Labour, Finance and Foreign Affairs to provide structures and mechanisms that will ensure adequate protection, advisory and monitoring services to beneficiaries of YESA in host countries/Regions.

7.4

Direct the Ministers for Foreign Affairs and Labour to explore the appropriate bilateral and multilateral agreements with friendly labour destination countries for Kenyan youth skills and ratify relevant migrant workers conventions

7.5

Give necessary directions to ensure that the draft policy paper on Youth Employment Scheme Abroad is presented to parliament to have it debated as soon as possible and thereafter implemented.

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HON. PROF. HELLEN J. SAMBILI EGH, MP MINISTER FOR YOUTH AFFAIRS & SPORTS

HON. JOHN K. MUNYES EGH, MP MINISTER FOR LABOUR

DATE ..2009

DATE. 2009