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 |
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.
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.
|
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 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!
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