Employment and income generation aspects in the informal sector: a case study of Karatina Town, Kenya

Abstract

The growing gap between the numbers of people looking for jobs and the employment opportunities that exist have led to the development of an urban informal sector. The sector includes numerous heterogenous activities which engage in small scale production of goods and services. This study, based on the small scale informal manufacturing and repair activities in Karatina, explores the employment and income generation aspects as well as the acquisition.of artisan skills. The study is set within the Government policy on the jua kali sector and the concern over employment problems in the country. The issues addressed to are employees in each enterprise, earnings, savings, business premises and credit facilities. In order to establish the important role played by small scale/informal sector in employment and income generation, the study has employed suitable qualitative techniques. The study has emerged with a conclusion that slow development of the sector has been as a result of various constraints which include lack of credit facilities, suitable premises, high licence fees and low demand for the goods. Thus, the recommendations are geared towards easing these retardive forces, mainly that the agencies concerned with the development of small scale/ informal enterprises should improve their lending procedures and conditions. Local authority laws and regulations pertaining to the use of land in urban areas should be revised with an aim to accommodating informal activities within these areas.