Transcript KENYA`S EXPERIENCE ON MDGs SUB

AFRICA WORKING GROUP ON INFORMAL
SECTOR
Kenya Country Report
Yaounde, September 14, 2011
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Informal Sector in Kenya
OUTLINE
 Definition
 Sources of Informal sector statistics in Kenya
 Methodology for data collection
 Recent Surveys
 Planned surveys
 Highlight of Employment trends in Kenya
 Informal Sector Economic Activities
 Challenges
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Definition 1
 The Informal sector in Kenya is defined to include
 All small-scale activities
 That are semi-organised and unregulated
 Use simple labour-intensive technology
 They are undertaken by self-employed persons; own-account
workers or working employers of a few workers
 They are undertaken by artisan, traders and other operators
in worksites such as
 Open yards
 Market stalls
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Definition 2
 Undeveloped plots
 Residential houses and
 Street pavements
 These businesses are not registered with the registrar of
companies but they may have licenses from the local
authorities
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Sources of Informal Sector statistics
in Kenya 1
 Before 1990s the Bureau used to carry out regular informal
sector surveys targeting enterprises to collect information on
 Production
 Inputs
 Sales and
 Employment
 When these surveys stalled data gaps emerged prompting the
users (e.g. universities, microfinance institutions and policy
makers) to initiate their own studies
 1993 and 1995 MSE surveys undertaken by the Kenya Rural
Enterprise Programme (K-Rep), focusing on enterprises
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Sources of Informal Sector statistics
in Kenya 2
 In 1998/99 Kenya undertook an Integrated Labour Force
Survey which had an informal sector module
 In 1999 the Bureau in collaboration with K-Rep, ICEG and
IDS carried a household based MSE survey
 Enterprises were followed from the households
 In 2000, KIPPRA conducted an informal sector survey
(report not published but availed to the Bureau)
 In 2005/06 Bureau conducted an Integrated Household
Budget survey which had an informal sector module
 In the 2009 Population and Housing census, there was a
question on the sector of employment
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Methodology for data collection 1
 The earlier surveys (before 1990s) were enterprise based
 1998 LFS and 1999 MSE; mixed (household – enterprise)
 2000 enterprise based
 2005/06 household – enterprise
 A technical working group comprising Research institutions,
Ministries of Industry, Labour and Finance, the CBK, K-Rep,
AACEG ( for inclusiveness) exists for planning the
forthcoming survey
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Methodology for data collection 2
 Key indicators include:
 Size of enterprise
 Ownership
 Inputs
 Sales
 Products
 Income
 Linkages to other informal sector enterprises and modern
sector (including international linkages)
 Credit availability
 Age of enterprises
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Recent Surveys
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Date
Type of survey
Coverage
2011
NATIONAL
SURVEY
2010
CHILD LABOUR SURVEY
2005/6
INTEGRATED HOUSEHOLD NATIONAL
BUDGET SURVEY
√
1999
MICRO
AND
SMALL NATIONAL
ENTERPRISES SURVEY
√
1998/99
INTEGRATED
FORCE SURVEY
√
MANPOWER NATIONAL
3 DISTRICTS (KITUI,
KILIFI AND BUSIA)
LABOUR NATIONAL
Informal
Module
Sector
√
√
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Planned Surveys
Date
Type of survey
2011/12
MICRO
AND NATIONAL
SMALL
ENTREPRISES
SURVEY
LABOUR FORCE
SURVEY
NATIONAL
√
ANNUAL
EMPLOYMENT
NATIONAL
AND
EARNIGS
SURVEY
HOUSEHOLD
BUDGET SURVEY NATIONAL
√
2012/13
2011
2012
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Coverage
Informal Sector
√
√
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Highlight of Employment Numbers
Table 4.1: Total Recorded Employment 1: June, 2006 - 2010
'000
2006
2007
2008
2009
2010*
1,857.6
1,909.8
1,943.9
2,000.1
2,060.4
67.2
67.5
67.4
67.5
69.8
Informal Sector 2 .. .. .. .. .. .. .. .. .. .. .. .. .. ..
7,068.6
7,501.6
7,942.3
8,388.9
8,829.8
TOTAL
8,993.4
9,478.9
9,953.6
10,456.5
10,960.0
Modern Establishments - Urban and Rural Areas:
Wage Employees .. .. .. .. .. .. .. .. .. ..
Self-employed and unpaid family w orkers .. ..
.. .. .. .. .. .. .. .. .. .. .. .. .. .. ..
* Provisional
1
Figures refer to employment stock as at 30th June and excudes small scale farming
and Pastrolist activities.
2
Estimated
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Informal Sector Economic Activities
Informal sector activities are mainly concentrated in the
following industries
• Mining and Quarrying
• Manufacturing
• Construction
• Wholesale and retail trade, Repair of motor vehicles and household
goods
• Hotels and Restaurants
• Transport and Communication
• Real estate activities
• Other community, social and personal service activities
Challenges 1
 Reliance on surveys which require enormous funds to plan
and undertake
 Ease of entry and exit of informal sector enterprises makes it
difficult to follow up and maintain a frame
 Lack of an informal sector enterprise sampling frame
(therefore not able to undertake enterprise based sample
survey – weighting challenge)
 Lack of proper record keeping by informal sector players
(Income based on estimation)
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Challenges 2
 Difficulty in following from household to enterprise due
varied locations (business not necessarily located in the same
geographical region with the household)
 Lack of institutional framework to deal with informal sector
(no specific division within the Bureau charged with
collection and compilation of informal sector statistics)
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The end
Thank you
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