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Originally published by The Standard Business
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February 19, 2026
1w ago

Why services sector offers best bet for jobs, economic development

Why services sector offers best bet for jobs, economic development

Developing economies such as Kenya have been advised by a United Nations body to pivot their services sectors as the catapult for economic growth. ..

✨ Key Highlights

A United Nations report recommends that developing economies, including Kenya, should prioritize their tourism and services sectors for economic growth and job creation, attributing this shift to intense global competition in manufacturing and the expansion of the digital economy.

  • The report, The Least Developed Countries Report 2025: Are Services the New Path to Structural Transformation?, was published by UN Trade and Development (UNCTAD).
  • The services sector now accounts for approximately two-thirds of worldwide output and is the largest global job generator.
  • Kenya's manufacturing sector grew by a mere 3 percent and holds 7.3 percent of the economy, while the accommodation and food services sector grew by 25.7 percent according to the KNBS Economic Survey Report 2025.

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