Non-formal education, defined as any organized educational activity outside the established formal system whether operating separately or as an important feature of some broader activity that is intended to serve identifiable learning clienteles and learning objective is of great importance to society. It emerged out of the feeling that formal systems were failing in some aspects like irrelevant curriculum and other socio-economic problems. Owing to the dynamics of education in society today and the need to develop new approaches to non-formal education within the context of life long learning, development of non-formal education programmes for the out of school youth in Kenya is necessary. This paper discusses the need for a renewed approach to non-formal education for out of school youth. In the paper the definition and development of non-formal education is discussed highlighting the challenges and gaps in its development in Kenya. The problems and challenges facing the Kenyan out of school youth are highlighted. Recommendations are made on how best to design and implement non-formal education programmes to benefit a wider clientele of the out of school youth and adults. (Contains 2 tables.)