The thriving informal enterprises

Nakuru, Monday, April 24, 2023

K.N.A By Veronica Bosibori

The chairman of small business enterprises in Nakuru Johnstone Ndegwa has appealed to the county government to support the traders working outside the formal employment bracket.

He said the informal sector was universal, pervasive, global, and ever-present all over the world and the best way to handle the traders was through support instead of appearing to be against such enterprises. He was speaking today during their quarterly meeting at the Nakuru industrial area.

He noted that they were an important contributor to the economic development in low-income areas as a source of employment, earnings, and household livelihoods in the informal settlement areas.

Ndegwa said nearly 70 percent of employment outside farming in Nakuru county was in the informal sector enterprise and therefore essential for job creation, income growth, and poverty reduction.

However, he said despite the county’s informal sector being large, their contributions were mainly swept under the carpet and more often than not, their members were considered a nuisance due to their hawking habits.

 Also, he said lack of capital was a major hindrance in the sector, and the current economic difficult times have forced them to reduce stock thereby contributing to their inability to repay loans and daily needs such as food.

Additionally, he said employment in the informal sector is associated with significantly lower levels of poverty than those experienced in farming, hence the flocking of jobless youths to the sector, especially from the rural areas.

He gave an example of the motorbike riders who hawk milk in the estates and were making much more money than the small-scale dairy farmers.

Ndegwa also urged the trade ministry to take a keen interest in their business by supporting them with affordable loans since banks have a negative attitude towards informal enterprises.

Finally, he appealed to all the informal enterprise players to always be compliant with tax returns in order to attract more support from the government. 

Courtesy K.N.A