IMPACT OF DIGITAL TECHNOLOGIES ON EMPLOYMENT PATTERNS IN DEVELOPING ECONOMIES: A KENYAN STUDY

Abstract

Digital technologies are transforming economies worldwide, reshaping the way people work and the types of jobs available. In developing countries such as Kenya, this transformation brings both opportunities and risks: while digital tools can expand access to employment and stimulate growth, they also threaten to displace workers who lack the necessary skills. This study examines how technological innovations, particularly mobile internet access and internet usage, affect employment patterns in Kenya. Using twenty years of national data, the analysis reveals that digital adoption is strongly associated with shifts in employment trends. Importantly, the results show that unemployment significantly mediates this relationship, amplifying both the opportunities and vulnerabilities created by digital change. The findings highlight the double-edged nature of technological advancement in developing economies: it can drive inclusion and productivity but also deepen inequalities if not carefully managed. The study underscores the urgent need for policies that expand affordable digital access, promote reskilling, and ensure that the benefits of technological progress are equitably shared across society.