Export-Orientation and Employment Patterns in Kenyas Manufacturing Sector: Firm-Level Evidence* By

* This paper is part of my on-going PhD thesis. I would like to thank Prof. Steve Kayizzi for his valuable comments on my dissertation from which this paper is drawn. All errors and omissions are solely mine. 1 Kenyas manufacturing sector is fairly large by regional standards, accounting for 13 percent of Gross Domestic Product (GDP). Following intensification of trade liberalisation reforms in the 1990s, the share of exporting firms has increased over time. However, this seem to have coincided with a rise in the use of temporary workers, who more often than not, do not enjoy employment benefits and safety nets in comparison with permanent workers. Given the high level of unemployment and widespread poverty in Kenya, the implications of such labour market outcomes cannot be over emphasised. Thus, one of the development challenges the country is facing is spurring economic growth through an export-led economic strategy while at the same time promoting growth of high quality employment. Using firm-level data, this paper explores the employment patterns in exporting versus non-exporting firms in terms of use of different labour categoriestemporary (casual and part time) versus permanent; skilled versus unskilledand attempts to identify some of the factors that explain such patterns. The main sources of data ar