The Emergence And Development Of The Informal Sector 1908- 2009 In Eldoret, Kenya

Abstract

The main purpose of this study was to examine the development of the informal sector 1908-2009 in Kenya, the case study of Eldoret town. The objectives of the study were; to examine what led to the emergence and development of informal sector in Eldoret during the colonial period; to examine the policies formulated by the government of Kenya since independence with regard to the informal sector and the relationship between the formal and informal sectors; to examine the challenges facing the informal sector in Eldoret since the introduction of multipartism in Kenya. Random stratified sampling was employed to obtain a reasonable sample size for administering questionnaires. The researcher sampled 50 people actively involved in the informal sector. The researcher sampled an average of 3 people from each of the 15 wards of Eldoret by then apart from the densely populated wards where 4 people were sampled. These wards were; Langas, Market, Kapsoya, Huruma and Kamukunji to make a total of 50. The questionnaires had both open-ended and closed ended questions. The data was collected from the field using one on one interviews and subsequent filling of the questionnaires. The data was analyzed using descriptive tools. The study findings indicated that the motivation behind the development of the informal sector in Eldoret and Kenya at large was due to the reluctance on the side of the government in having clear-cut policies on the informal sector. The dynamism and creativity of the people in the informal sector provides the basis for self-reliance and alleviation of poverty among the urban poor in Eldoret. The government has formulated several policies in support of the informal sector though not enough. The post elections violence affected the informal sector negatively as many people had to relocate or abandon the whole idea all together. Informal sector is very key in expanding the economy as well as creating job opportunities. The small and micro enterprises are the backbone of Kenya’s economy and Eldoret in particular. The following recommendations were made based on the research findings; there is need for the government to come up with clear-cut policies on the informal sector through proper legislations and other government initiatives aimed at improving and/or assisting the informal sector; people especially those seeking for employment opportunities should embrace the informal sector instead of tarmacking for years looking for formal employment; the county government of Eldoret should come up with legislations within the county assembly aimed at supporting the informal sector in the county; there is need for structured funding of the small enterprises in Eldoret and its environs.