1. Kenya Country Report Yaounde, September 14, 2011 1 AFRICA WORKING GROUP ON INFORMAL SECTOR

2. Informal Sector in Kenya 7/17/2016 2 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

3. Definition 1 7/17/2016 3 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

4. Definition 2 7/17/2016 4 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

5. 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 7/17/2016 5

6. 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 7/17/2016 6

7. 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 7/17/2016 7

8. 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 7/17/2016 8

9. Recent Surveys 7/17/2016 9 DateType of surveyCoverageInformal Sector Module 2011NATIONAL MANPOWER SURVEY NATIONAL √ 2010CHILD LABOUR SURVEY3 DISTRICTS (KITUI, KILIFI AND BUSIA) √ 2005/6INTEGRATED HOUSEHOLD BUDGET SURVEY NATIONAL √ 1999MICRO AND SMALL ENTERPRISES SURVEY NATIONAL √ 1998/99INTEGRATED LABOUR FORCE SURVEY NATIONAL √

10. Planned Surveys 7/17/2016 10 DateType of surveyCoverageInformal Sector 2011/12MICRO AND SMALL ENTREPRISES SURVEY NATIONAL √ 2012/13LABOUR FORCE SURVEYNATIONAL √ 2011ANNUAL EMPLOYMENT AND EARNIGS SURVEY NATIONAL √ 2012HOUSEHOLD BUDGET SURVEYNATIONAL √

11. Highlight of Employment Numbers 7/17/2016 11

12. 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

13. 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) 7/17/2016 13

14. 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) 7/17/2016 14

15. 15 The end Thank you