The Informal Economy in Kenya

Kenya has a large informal economy that makes significant contribution to employment creation, income generation, poverty reduction and economic growth. The Federation of Kenya Employers with the support of the International Labour Organisation implemented a project aimed at increasing the knowledge base and understanding of informal enterprises from perspectives of policy and membership development services. It commissioned an assessment of the informal economy in Kenya to better understand the characteristics of the informal economy, employment and remuneration of workers in the informal economy, market conduct of informal enterprises, the potential for formalization among informal enterprises, employer organizations and informality, constraints experienced by informal enterprises and their perceived solutions, and the effects of COVID-19 on the informal economy.