APRM • SECOND COUNTRY REVIEW REPORT OF THE REPUBLIC OF KENYA • Inequality has increased and its incidence is highest between regions and the vulnerable groups; • Unemployment is very high and the incidence is highest among the youth and vulnerable groups such as persons with disabilities. Although the government reports an increase in overall employment, the bulk of this is informal employment. This form of employment is often vulnerable, as workers work under precarious conditions and provides low incomes. As a result, the majority of the poor cohorts are the working poor; Figure 14: Kenya: Employment and job creation, 2011-2015 Majority of Kenyans work in the informal sector and the informal sector is also the job creator New Jobs Created (thousands), 2011-2015 Total Employment (thousands) 2011-2015 800 1400 700 1200 600 1000 500 800 400 600 300 400 200 200 100 0 0 2011 2012 2013 Informal 2014 2011 2015 2012 Formal 2013 Informal 2014 2015 Formal Source: Kenya National Bureau of Statistics (2016), Economic Surveys 2016 • The cost of living has increased since the last review in 2006; and • Growth of the small business sector, which absorbs the majority of the workforce, is severely impeded by lack of access to capital and a high cost of contacting the business. 4.3.3 Recommendations of the Panel 311. The Panel recommends that Kenya: i) Integrate a resource redistribution framework into the policy making and implementation processes and mechanisms of the Medium Term Plans for redistributing resources to poorer sections of the society to address the challenges of poverty and inequality (Ministry of Devolution and Planning) | 149 |