When talking about sources of employment in Kenya, the Jua Kali sector has to feature on the list. Since the recognition of small and medium enterprises (SMEs) in 1988, our economy has experienced tremendous growth.
Despite the sector comprising informal small-scale businesses, it provides employment to up to 83 per cent of the working population and contributes 28 per cent of the national output of Sh9.9 trillion.
Word Bank data show 5.7 per cent of Kenyan’s labour force in the formal sector was out of work last year, up from 2.8 per cent. That means the unemployment rate continues to increase with many people finding it hard to provide for their families due to inflation.
The crisis not only pushes many households to the wall but also increases the poverty level. Statistics show more than 7.8 million Kenyans, quite a significant number, live on less than $1.90 (Sh232) a day.
Jua Kali remains to be the only ray of hope for the majority. Most people venture into small-scale businesses as a source of livelihood. To make an omelette, one has to break an egg.
While the measures the government has put in place to help small-scale enterprises are laudable, the sector should not be sidelined, considering its economic impact. Bees are small; small is their effort and huge is their impact.
Jua Kali struggles with endless challenges of limited access to finances and business development services, lack of social protection, and endless legal procedures in acquiring a licence.
For lack of collateral, individuals in this sector find it hard to access credit to expand their businesses. The legal procedures involved in acquiring a licence are another obstacle.
The government should, therefore, address the challenges the sector faces since it will be a panacea for the problems of poverty and unemployment. The national and county governments should liaise to harness the untapped potential in this sector.
Mr Were is a communication and media technology student at Maseno University. [email protected]
