This literature review examines the non-profit sector’s role in Kenya’s economy, focusing on its contribution to creating dignified and fulfilling employment for youth aged 15 to 35 years. Despite Kenya’s youthful population, high unemployment and underemployment persist, with 77 per cent of employed youth in vulnerable, informal jobs. The non-profit sector, including NGOs and social enterprises, addresses these challenges through direct employment, volunteerism, skills training, entrepreneurship support, and digital advancement. It contributes significantly to GDP, with NGOs alone employing over 76,000 individuals and injecting billions into the economy. However, gaps remain in skills alignment, technology access, gender disparities, and policy advocacy. The review identifies sector-specific opportunities in agriculture, ICT, and MSMEs, while highlighting the need for demand-driven training and inclusive strategies. By synthesising existing literature, this review underscores the sector’s potential to transform youth employment but calls for stronger collaboration, sustainable funding, and culturally sensitive frameworks to enhance impact. The findings aim to inform policymakers, practitioners, and researchers about leveraging the non-profit sector for equitable economic growth.