The self-employment sector provides an avenue for workers to earn a living. There exists earning differentials among workers with various levels of education worldwide. In Kisii County there are worker entering into employment with various levels of education. The return to the self-employed varies. The return to the self-employed is important in determining individual and government investment in education. The purpose of the study was to establish education returns to computer self-employment activities in urban Kisii County. The study objectives were to; determine the returns to education of various levels of education of the self-employed in computer industry, determine the challenges facing the self-employed, determine effectiveness of intervention measures by Kenya government to assist the self-employed in their work. The study used descriptive and correlation design. Human capital theory was used. The population of the study was 11240.That is in computer service industry 6400. The study used Fisher’s model to derive a sample of 384 respondents with 218 computer services Questionnaire and interview schedules were used to collect data for the study. Quantitative data was analyzed using descriptive statistics and regression analysis. Qualitative data was transcribed and analyzed in emergent themes and sub-themes: The study found out that; in computer service industry self-employed respondents with K.C.P.E earned an average Ksh 15,571.17, K.C.S.E earned an average 14,857.08, certificate earned 9364.81 and diploma earned an average of 9364.81 amount of money and bachelor earned 30,293.33. The Pearson’s r results were’ k.c.pe 0.643, k.c.s.e 0.104, certificate 0.128, diploma 0.195 and bachelors degree 0.045. The r2 analysis was: k.c.p.e category the r2 was 0.0413, k.c.s.e was 0.011, certificate 0.016, and diploma was 0.038 for bachelors. The adjusted R results were:kcpe 0.373, kcse 0.02, certificate 0.002, diploma0.001 and bachelors 0.075 The ANOVA indicated k.c.p.e (F(1,15)10.572,P=0.005), k.c.s.e was (F(1,70)0,761, P=0.386), certificate was (F(1,52,)0.868,P=0.356), diploma was (F(1,28)1.031, P=0.319 and bachelor results were (F(1,13)0.006,P=0.874). Government intervention was not effective in the provision of: market stalls, loans and market for finished products, but effective in provision of: security, electricity and infrastructure. The study concluded that; there was a significant and positive association between returns to education and increasing level of education, and lack of capital was a challenge to the self-employed. The study recommended government intervention in funding the self-employed in their activities, reduced electricity charges and blackouts. The study is important in formulation of education programmes relevant to the self-employed and government intervention in support of the self-employed.
