Mwaura: Nine in 10 new jobs created in 2025 were informal
Nairobi
By
David Njaaga
| May 03, 2026
Kenya created 822,100 new jobs in 2025, the government has said, but the informal sector drove more than 87 per cent of the growth.
In an official statement, Government Spokesman Isaac Mwaura said total employment, excluding small-scale agriculture, rose from 20.8 million in 2024 to 21.6 million last year, citing data from the Kenya National Bureau of Statistics (KNBS) 2026 Economic Survey.
Mwaura, who spoke during Episode 26 of "Sema na Spox: Bonga na Gava" in Nairobi, said construction led the sectoral recovery, attributing the rebound to affordable housing projects and the resumption of road construction works.
The sector expanded by 6.7 per cent after contracting in 2024, making it the fastest-growing employer in the period under review.
The KNBS survey shows the 2025 figures mark a recovery from 2024, when Kenya created 782,300 jobs, the lowest count since the Covid-19 pandemic, as the economy struggled under costly credit, street protests and floods that destroyed farms.
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According to the survey, informal sector jobs have accounted for nearly nine out of every 10 new jobs created in Kenya over the last five years, a proportion that remains unchanged.
The survey further shows that formal wage employment grew at a slower pace, rising 2.8 per cent to 3.3 million jobs, with education remaining the largest formal employer at 731,300 positions.
KNBS data shows real average earnings rose from Sh665,400 in 2024 to Sh678,800 in 2025 as inflation eased to 3.8 per cent, offering workers modest relief after years of declining purchasing power.
At the same time, Mwaura warned heavy downpours in the Aberdare and Mount Kenya regions had driven high inflows into Masinga, Kamburu, Kindaruma, Gitaru and Kiambere dams along the Tana River cascade.
"As of Thursday morning, Kiambere Dam had spilt, with water levels reaching 41 centimetres above maximum capacity. Residents in Garissa and Tana River counties are urged to move to higher ground for their safety," said Mwaura.