It is a cold morning in Nairobi. Outside a construction site, young people wait hopefully for a chance at a day's work. Inside the same site, employers are searching for skilled workers they cannot find.
That contradiction plays out across Kenya every day and highlights the growing business case for investing in skills. While thousands of young people are looking for opportunities, businesses are struggling to find the talent they need to grow.
The challenge is often framed as youth unemployment. But it is also a skills challenge.
And increasingly, it is becoming a business challenge.
When companies cannot access skilled talent, productivity suffers, projects are delayed, and growth opportunities are missed. The cost of the skills gap is felt not only by young people looking for work, but by businesses trying to compete in an increasingly demanding economy.
Two years ago, one young apprentice in the PropelA Programme was among the many secondary school graduates searching for a pathway into employment. Today, that apprentice is learning to install electrical systems, troubleshoot faults, read technical drawings, and work alongside experienced technicians.
For many people, this is a story about youth employment. For businesses, it is a story about building the skilled workforce needed to drive growth.
For years, employers across Kenya have reported a familiar challenge: young people enter the labour market eager to work, but many lack the practical experience required in the workplace. This mismatch affects both sides. Young people struggle to find decent work, while businesses struggle to find job-ready talent.
Industry-led skills development programmes are helping to close that gap.
But one question remains:
Does investing in skills pay off?
According to a recent PropelA business case study, it does.
The study found that participating companies achieved an average net present value of nearly KES 2 million over a nine-year period. For every KES 100 invested, businesses realised approximately KES 30 in returns, reaching break-even by Year Three.
The findings challenge the idea that skills development is simply a cost.
Instead, they demonstrate that investing in skills can generate measurable returns while helping businesses build the talent they need for long-term success.
Perhaps the most important finding is not the return itself.
It is where the return comes from.
Nearly 87% of the benefits generated for participating companies came from apprentices' productive contribution to the business.
In practical terms, that means the apprentice who arrived on site to learn is also creating value.
As they gained skills and experience, they contributed to project delivery, increased workforce productivity, and helped companies meet growing demand, turning skills development into a driver of business growth and long-term competitiveness.
Additional benefits came through lower recruitment costs, reduced onboarding time, and the value created by employing certified technicians
For businesses facing persistent skills shortages, that represents a significant advantage.
The study also compared apprenticeships with more conventional recruitment pathways.
Over time, apprentices generated more than twice the cumulative contribution of semi-skilled workers and more than 2.5 times the contribution of unskilled workers. They became productive faster, required less retraining, and delivered stronger returns throughout their early years of employment.
For employers, this suggests that the cost of not investing in skills may be higher than previously understood.
Every vacancy filled without a structured pathway for developing talent represents a missed opportunity to strengthen productivity, competitiveness, and long-term growth.
Behind the numbers is a much bigger story.
A young person gains a pathway into decent work.
A business develops a reliable pipeline of talent that boosts their productivity.
An industry strengthens its workforce.
An economy becomes more productive.
Kenya cannot achieve sustainable growth without skilled workers. Equally, young people cannot access meaningful employment without opportunities that connect learning to labour market demand.
That is why the conversation about skills needs to evolve.
Investing in skills is not only about addressing youth unemployment.
It is about building stronger businesses, more competitive industries, and a more resilient economy.
Kenya's experience is increasingly showing that when skills development is aligned with the needs of industry, everyone benefits.
Perhaps that is why the economic case for investing in skills is becoming increasingly difficult to ignore.
To request a copy of the PropelA Business Case Study or get more information, email, [email protected].
This project is financed by the Hilti Foundation and Geberit International AG. It is part of the Swisscontact Development Programme, which is co-financed by the Swiss Agency for Development and Cooperation (SDC), Federal Department of Foreign Affairs FDFA.