An increasing number of Kenya-based corporations are looking to recruit from the informal sector in order to increase the latter’s contribution to economic growth in Kenya. This is in the backdrop of conventional sectors like agriculture, wholesale & manufacturing shrinking due to various economic factors.
Insurance companies in particular are looking at hiring informal traders and pledging commission to small business even while adopting technology to monitor their businesses because they sense growth.
Even bankers are beginning to feel that they can’t ignore SMEs.
Ministry of Trade data indicates that micro, small and medium enterprises contributed 18 percent of the country’s GDP last year, a performance that is projected to hit 22 per cent this year.
The SME segment accounts for 80 per cent of the country’s total labour force and contributes 50 percent of new businesses that enter into the market every year.
With the government announcing a separate stock exchange for them, the SME sector is slated to get more organised.