Harnessing Foreign Direct Investment for Employment Creation for the Youth in Kenya. A Case Study of Nairobi and Kiambu Counties (2005-2019)

Foreign Direct Investments (FDI) play a key role in developing countries. Employment creation is one of the benefits that comes with FDI Employment creation is a major problem facing developing countries especially African states that are experiencing youth bulge. Youth unemployment is a major challenge that is facing Kenya. The study sought to examine ways that Kenya can attract more FDI and create employment opportunities for its youthful population. The study sought to answer three questions; How can Kenya create an environment that attracts more FDI? Have the existing FBI's in Kenya created employment opportunities either directly or indirectly? What me the factors that hinder youth employment by FDI in Kiambu and Nairobi counties? The study adopted mired methods research design where both qualitative and quantitative data was collected from both primary and secondary sources. The study found that despite the increased flow of FDI in Kenya, the employment created by the FDI is very low to meet the demands of the labor market dominated by youthful population The study found that access to markets, good and efficient infrastructure, ease of doing business, supply of youthful labor are the top most factors that attract foreign investments in Kenya Corruption, institutional weakness, inadequate supply of skilled labor, high cost of doing business, red tape and bureaucracy, insecurity and crimes, politics and electioneering environment, counterfeit products and competition from imports are the main factors that deter the flaw of FDI in Kenya. The study also found that shortage of skills mallow levels of education among the youth in Kenya hinder their rate of employment by FDI in the counties. The study makes the following recommendations; The Kenya government need to improve on strategies put in place for fighting corruption both at national government institutions and at county levels. The government need to empower KenInvest in terms of authority, financial facilitation and staff capacity so that it becomes afunctional and effective one stop shop for foreign investments. Learning institutions to partner with the private sector in curriculums development to achieve skills enhancement among the young people. Finally, the government need to empower the local industries to enable them to absorb the spillover effects of FDL The government therefore should ensure that there are effective institutions that safeguard property rights and emote-age local content, and also ensure access to affordable financing for local firms.