HIV/AIDS pandemic has not only been a major health issue in many third world economies, but
has also slowed the development of these economies in the last decades. The greatest impact of
this pandemic has been experienced among the working population. Global statistics indicate
that more than 36 million people who are infected by HIV/AIDS fall among the economically
active category. Among the individuals participating in labour market in Kenya, more than 5.6%
of economically active individuals are infected with HIV/AIDS. The high prevalence among the
working population is expected to affect participation of employee’s labour market significantly
in the long-run if the issue is not addressed. This paper seeks to examine the impact of
HIV/AIDS prevalence on labour force participation in Kenya. The results of this study indicate
that HIV prevalence is significant in reducing the rate of participation of employees and potential
workers. HIV/AIDS causes morbidity and mortality. Mortality leads to withdrawal from the
labour force while morbidly can reduce activity or lead to withdraw depending on severity of the
illness. The results of this examination also indicate that population growth has a positive
relationship with labour force participation. Population increases the working age population and
consequently the labour force participation rate. The paper recommends that policy on HIV
prevalence which focuses on labour force specifically ought to be developed. Campaigns to
reduce the prevalence among the working population should be encouraged.