The role of the informal sector in employment generation: A case study of Nairobi.

Abstract

This study set out to examine the role of tile informal sector in job creation with a view to increasing employment generated by this sector. The study used descriptive and analytical techniques on data from 482 entrepreneurs in Nairobi. The data was obtained from a survey done by the French institute for research in Africa. The main findings of this study are that the informal sector has an important role to play ill the Kenyan economy through job creation since the formal sector alone has failed to create enough jobs for the continuously growing labor force. The study has also found out that one of the major limitations that this sector is facing is capital for starting up business and also for further expansion of the firms. This paper has therefore recommended more support for this sector.