Discussion Paper No. 232 of 2020 on Exploring Kenya Dairy Industry for Job Creation for the Youth

Abstract

This study is based on the value chain approach to assess key constraints to growth of the dairy industry in Kenya, to explore the current job creation potential of the industry and to assess its labour skills requirements and skills gap. The dairy industry is well poised to contribute considerable number of jobs for unemployed youths in the country. However, the industry’s growth faces enormous challenges that hinder its ability to generate jobs. Some of the challenges experienced by different actors along the dairy value chain include poor infrastructural services such as poor road networks, irregularity in power supply and water, competition from informal establishments, limited access to finance and strict customs/tariffs and regulations, among others. There has been an upward trend in total number of jobs created in this industry over the years. However, in the pool of unemployed youth, there are occupational skills gap for some occupations, namely: animal health professionals, farm advisors and dairy machine operators, among others. The total number of students enrolling for agriculture-related courses has been on the decline since 2017. Addressing these constraints will raise the industry’s productivity, which in turn would create more jobs for the youth. The paper recommends setting up strict measures and regulations with solid implementation plans to protect the formal milk channel, which possess immense potential for job creation; invest more resources in research and development; improve infrastructure; and create more capacity of farmers to enhance their skills in milk handling techniques to minimize post-harvest losses. To attract more youths in the industry, there is need to professionalize the industry through provision of high incomes and quality jobs.