Discussion Paper No. 292 of 2021 on Investing in the Youth to Realize Demographic Dividends in Kenya

Abstract

The Discussion Paper No. 292 of 2021 on Investing in the Youth to Realize Demographic Dividends in Kenya utilized cross-sectional data from the Kenya Integrated Household Budget Survey 2015/16 to analyze the determinants of realizing youth dividends. The empirical results indicated that higher dividends are achieved through tertiary education, non-agricultural sectors, access to information and communication technology, health insurance coverage, reduced dependency ratio, empowerment of women, and development in rural and urban contexts. The findings suggest that the government should invest in tertiary education, improve vocational and tertiary education quality in rural areas, promote reproductive health initiatives, increase insurance coverage for the youth, make agriculture more appealing through technology and infrastructure development, enhance access to information and communication technology, and create awareness of training and employment opportunities for the youth. By enhancing youth productivity and aligning with development frameworks, such as Kenya Vision 2030 and the Demographic Dividend Roadmap, Kenya can tap into its demographic dividend.