This archive report was first published on 17 November 2019.
On November 17, 2019, the Inter Region Economic Network (IREN) in partnership with Friedrich Naumann launched a platform to digitize the informal sector and ease the cost of doing business.
The informal sector, worth Ksh 2 trillion, is a significant contributor to the economy, and digitalization is expected to create a platform for tapping into this potential.
IREN Director James Shikwata emphasized the importance of adopting technology, stating, “Many ICT and technology companies have designed various platforms that will suit the informal sector and it is up to the informal sector to adopt these technologies.”
Shikwata also highlighted the benefits of digitalization, including enabling the informal sector to tap into emerging technologies and grow their businesses and opportunities.
Kenya Association of Manufacturers (KAM) Head of Membership Development and Board affairs Tobias Alando expressed concern about the growth of the informal sector, citing its contribution to the ultimate growth of the manufacturing sector.
Alondo noted that the informal sector is growing faster than the formal sector and created up to 90 per cent of all jobs in 2016, making digitization crucial for creating more job opportunities.
He also emphasized the need to address the numerous challenges faced by the sector, including competition from regional and international counterparts, and the impact of uncoordinated policies and regulations.
