Another White Elephant Project By Our Economics-Challenged ‘Digital Dynamic Duo’!

Giving young graduates a monthly stipend of Sh15,000 will enable them lead decent lives as they search for jobs.


Jobless graduates to earn Sh15,000 monthly if new motion gets nod

By Frankline Sunday

KENYA: University graduates who do not find jobs immediately could soon receive Sh15,000 in monthly unemployment benefits for their upkeep.

This is if a motion to cushion the youth from unemployment is passed. The motion seeks to establish a National Unemployment Scheme for graduates similar to the National Social Security Fund.

The scheme will see one per cent of the country’s annual revenue or at least Sh100 billion set aside for unemployed graduates.

“Aware that thousands of Kenyans graduate annually from universities countrywide and deeply concerned that the unemployment rate continues to rise…this House urges to the Government to create a national unemployment graduates fund at 1 per cent of the annual national Budget,” read the motion in part.

Age bracket

“From this, all unemployed youthful graduates aged 18 to 35 years will be paid a monthly rate of Sh15,000 until they get employment.”

Data from a recent World Bank report shows that more than 800,000 people get into the job market each year. The huge jobless market competes against 50,000 employment positions in formal employment.

If the proposal is passed, the Treasury will need at least Sh12 billion each month to provide for the unemployment insurance scheme. This sums up to Sh144 billion annually.

While the motion is yet to be debated, economists are already skeptical about its feasibility, given the country’s economic reality.

“The problem with the proposal is that our real unemployment percentage is at 12 per cent of the current workforce which is between 12 and 15 million people,” explains Mr David Owiro, an economist with the Institute of Economic Affairs (IEA).

“If you include the number of disguised unemployment which is at 40 per cent,  it  then becomes impossible to see how Treasury will be able to finance these numbers,” he explains.

The numbers could be much bigger considering that the students graduating at institutions of higher education keeps increasing without a corresponding increase in the available job opportunities.

Formal jobs

“There are graduates who complete studies but cannot get formal jobs for several years, so how long can the Government keep on paying unemployment insurance,” states Mr Owiro.

The proposed national employment scheme will be set up under the Ministry of Labour, Social Security and Services. It will be funded solely from the national budget and available to all unemployed graduates.

Unemployment benefits are popular in developed countries like the US, Australia, Canada and the European Union where social welfare payments from the state are made to the unemployed. If implemented,Kenya will be the first country in Africa to provide blanket unemployment benefits to its unemployed population.

By einstein Posted in kenya

8 comments on “Another White Elephant Project By Our Economics-Challenged ‘Digital Dynamic Duo’!

  1. these people are efficient at theft of public funds. lets give credit where due

    they steal everything including any audit trail left behind

    if one ever wondered why we rely on historical records from colonials, and other governments, its because in kenya, we prefer to leave no tracks good or bad

    this in earlier years would have been called incompetence. in the kibaki and uhuruto regimes, we shall call this “professionalism”

    and you can spice this up with this twin report


    its official and no point for anyone to think otherwise.

    you have to be totally crooked to engage in any business in kenya, anyone telling you otherwise is lying


  2. I know of no country in the world that provides a blanket unemployment benefits to a class of her citizens who have not managed to contribute even a minute of their labour productively to the economy.

    Within the EU, any unemployed person regardless of her/his level of education, MUST have worked for at least ONE YEAR and contributed monthly into the national unemployment insurance fund before they can qualify to be paid a certain amount when they become unemployed from the national unemployment insurance fund. And even then, each person is paid according to how much they earned as net monthly salary/wage before they got unemployed and how much they contributed into the unemployment fund. The more one earns, the more one contributes into the fund and eventually the more one gets paid out when one gets unemployed.

    That is how this thing works. It is not economically practical to pay folks out of an insurance fund into which they contributed nothing. This even beats the logic behind any form of insurance, be it a car insurance or unemployment insurance (benefit).
    I hope Rotich the Treasury Secretary will veto this move right in its tracks. The idea is simply silly.

    Social welfare for our senior citizens without pensions would make more sense. After all, most of our senior citizens contributed one way or the other towards the economy in their prime ages. But even then, one should be very careful!


    • einstein


      this is too funny

      then i looked at the date …. and it wasn’t april 1 ….

      after a few moments i realised aw shucks, its kenya, everyday is april 1 with the crop of ……er…… leaders…. that we have

      so here is how it works

      since they cannot create the was it 500000 jobs a year, just pay them anyway

      this is Nirvana

      the only state where people are paid for doing nothing, only this time its official policy

      previously we paid civil servants and the likes, to leave coats and jackets hanging on their chairs

      in this new regime, we are expanding to find any guy out there and pay them

      this of course is an indirect employment (think of the trickle down effect)

      if you don’t get it, think of how many graduate certificates will be manufactured on river road

      do the math, sub-saharan stats indicate yada yada less than $2 a day

      so here the govt is offering just about the same for doing absolutely nothing

      so why should any graduate apply for a job in civil service if they can get the same by just sitting at home

      man i see the next wave of drunkards, who can literally afford to drink all day long

      long live the digital jubilee… gosh, we should have elected these dunderheads, much earlier on. by now. all graduates would be officially collecting handouts as a human right

      am thinking of writing to serem and the PSC so that we can have different levels

      – Jobless Freshman or Jobless group C – min pay…. max pay …

      – Senior Jobless – Jobless Group G (qualifications graduate must be unemployed for last 5 years)



    • I have been thinking that laptops for standard one is the most bizarre and stupid idea possible, but now I have to put it in the number two spot. Kenya is obviously being run by people who understand not even the most basic thing about the job they are supposed to do.


    • personally i think that its not so much that the DDD (digital dynamic duo) have no clue about what they need to do – (its obvious they do not), but the bigger issue which their so called sycophant base is trying real hard, is to market them as popular

      that is why they tried so hard in makueni and fell flat on their faces, they tried in kisii and mercifully didn’t show up otherwise it would have been terribly embarassing

      and therefore they resort to the same old tactics of the KANU era, buy or bribe your way out, of course using state resources

      why would leaders deliberately impoverish their country?

      two reasons,

      first is self preservation – in this case the DDD have to create or force a certain population to be blind, loyal followers to the point of death ( read the ICC)

      second – is foolishly they somehow believe that by not directly using their personal wealth and instead squander the meagre resources of the country, that they themselves will be cushioned from its impact (with several businesses, and holds on the economy as well as off-shore accounts and businesses, they feel pretty much safe)

      ironically, the lessons learned from Libya, Egypt etc, do not ring a bell to any of these guys. the only time they will learn is when it hits them in the face, but even then who knows whom they will blame for that


      • `
        The laptop project (or alternative version of tablets) is a dream-come-true procurement bonanza for the corrupt architects of primitive accumulation. Remember, pilfering from state coffers is their NUMBER ONE source of wealth SINCE INDEPENDENCE. It has always been the taxpayers who have helplessly funded the opulent and ostentatious display of wealth by the Kenyattas. Koinanges, Biwotts, Mois, and now Kibakis.

        Even in retirement, another Sh 700 billion is being budgeted to be thrown into an office Kibaki wouldn’t even step into…another Sh 50 million for Kibaki’s bronze statute…really!!!!!….and a 2.5 billion shilling 50th birthday “celebration” of the 5-decade-long looting season. Hello!!!!!

        The difference now – the looting architects are thinking “big” and hoodwinking masses with “digital” justifications for their plain theft. One single laptop project costing Sh 56 billion is a windfall payday with less headache!

        Many gullible and poor folks will inevitably buy the lie that their kids are slated to benefit from a government-inspired leap into the modern world of digital skills and prowess. The real beneficiaries are otherwise well known by any Kenyan with a class 6 education and above.


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