How COVID-19 pandemic is affecting the informal sector in Kenya.

COVID-19 is already causing a devastating impact on economies around the world. African countries have vulnerability since many people work in the informal sector. The informal sector across Africa is ubiquitous, with a significant number of people engaged in small and household enterprises outside formal wage employment. In Kenya, the informal sector thrives in both rural and urban centres.  

According to 2018 estimates, http://documents.vsemirnyjbank.org/curated/ru/262361468914023771/Informal-enterprises-in-Kenya there were about 14.3 million people employed in the informal economy (accounts for 83.6 per cent of total employment), against 2.8 million working in the formal sector. There are no accurate statistics on how many people work in the informal economy; the given figures are estimates, which government and multilateral agencies such as the World Bank and the International Monetary Fund recommended.

There are various categories of workers in the informal sector. In addition, it is worrying that despite the huge number of people in this labour force, the earnings differentials between the informal and formal sectors are significant. Entry-level employees in the formal sector earn between US$100 and $500 (Sh10, 000-Sh50, 000) a month. Those in the informal sector typically earn a monthly income of between US$20 and $250 (Sh5, 000-Sh25, 000).

The informal sector is basically viewed as an expedient measure where people survive while they wait for jobs in the formal sector. For these reasons, government policies and development financiers at the local and global levels respectively neglect the sector. Nevertheless, aside from job creation, it is exceedingly important to the country’s economy and many households depend on the informal sector. For instance, a lot of vehicle repair(garage) and metalwork(jua kali) takes place in the informal sector. And the fresh vegetable and fruit trade in Kenya is largely informal and unregulated.

Women selling fish

Women selling Cabbages

 Like other businesses, the informal sector has ended up with a reduction in customers because of the COVID-19 pandemic. The government is forced to implement quarantines and stay-at-home orders which have negative consequences for spending in shopping malls, markets and restaurants.

For instance, in trying to maintain social distancing, Kenyans have been ordered to avoid crowded markets in rural and urban centres. The demand for goods in markets has declined as a result of social panic caused by the Coronavirus, also the stocked perishable goods such as fruits and vegetables in these markets may go to waste. Those making school boxes and suitcases, or school uniforms have been affected by the closure of schools. The saloons and barbershops have been affected too as a result of social distancing.

Buyers and Sellers in a Market

The businesses that supply the informal sector could run out of supplies, this depends on how long the measures to curb the pandemic last. This might increase the cost of goods and services if the government don't put restrictions on the pricing pressure of essential goods and services. As a result of these implications on prices, the cash flow will also be affected.
Travel time to and from work been affected since public transport especially in major towns was disrupted during this pandemic. The government orders that each vehicle should carry half the recommended number of passengers has resulted in increased transport costs or delays in getting to work.
Those with children have been affected by school closure because there is nobody to supervise their children at home. During my visits to markets, interviews and observations around my neighbourhood, I observed that young market women usually take their children to informal daycare centres and now these centres have closed due to the pandemic, it means they cannot go to the market every day. Those who take their children with them to their workplaces may now be too concerned for their children’s safety and therefore forced to stay at home-which is non- productive.
Informal workers do not also take many of the precautions that health authorities suggest, such as social distancing, hand washing or self-isolation. This will endanger their health when interacting with customers.

People in a market(no social distancing)

The social distancing between workers in informal markets is difficult because of crowding. For instance, in open markets, people work close to each other and don’t have walls separating them. The same can be found in other informal sectors like in public “matatu” transport, vehicle repair and metalwork. 
Maintaining hygiene by handwashing with soap and water or sanitizing is a problem because there are few facilities and water points in markets.

Handwashing with soap&running water

  

Working from home is very difficult especially for workers in the informal sector, it is almost impossible. Most informal workers live in informal settlements in single rooms or bedsitters. They do not have enough space to work from. For others, their jobs require them to be on-site, where they’re in contact with their customers. The informal economy operates in agglomerations in different parts of towns(jua kali sites and markets)
There is a lot that the government and other institutions have done to support informal workers; In light of this pandemic, because many informal workers are in contact with large numbers of people, face masks and gloves have been provided to protect themselves and others. Water points have been set up in markets and other informal sector clusters and sanitizers provided. Those who had borrowed loans from commercial banks have been allowed to reschedule the loan payment period, the mobile money services like the free Mpesa transactions below Ksh 1,000 have been encouraged to minimize paper money handling which could increase the chances of COVID-19 transmission.

masks

Hand sanitizer

Be INFORMED 
Be PREPARED 
Be SMART 
Be SAFE

Published on April 10, 2020 
By Ruzeki

More news: 
 https://shadowwalkernews.blogspot.com/2020/04/coronavirus-live-updates-1435310.html?spref=tw

Thank you for reading!