Discussion Paper No. 327 of 2024 on Essential Skills for the Fourth Industrial Revolution in Kenya

Abstract

To succeed in the Fourth Industrial Revolution (4IR), individuals must have skills that match what industries need, covering physical, digital, and cognitive abilities because technology is rapidly changing how businesses work worldwide. Kenya has the potential to embrace 4IR fully but currently faces challenges like gaps in policies and mismatched skills that don’t meet employers’ needs. Technical and vocational training institutions (TVETs) and universities need more government support to offer innovative blockchain and Virtual Reality (VR) programs. These institutions often struggle due to insufficient funding and unclear guidelines from policies like the National Employment Authority Act (NEAA), which focuses more on job placements than collaborating with industries to define necessary skills. Industries should specify the skills they need across different 4IR sectors, and educational institutions can then figure out how to teach and assess these skills. The government’s role is crucial in effectively providing a clear framework for implementing and evaluating these programs. The research focuses on four 4IR technologies: AI and machine learning, Internet of Things, BlockChain, Metaverse virtual and augmented reality to assess the current state of 4IR skills and needs among employers and entrepreneurs, which shows some of the hard skills: digital literacy, data analysis, programming languages, data analysis, and soft skills: creativity, communication, problem-solving, and teamwork. The results also indicate a low transition from primary and secondary education to tertiary education, implying that most learners only gain the foundation skills but fail to get the skills necessary for industries developed at the tertiary level (TVETs and universities). Coordination between skills supply and employer needs through inclusive policy frameworks can address gaps, but TVETs and universities require more robust government support for innovative programs like blockchain and VR.