This archive report was first published on 12 December 2019.
On December 12, 2019, Housing and Urban Planning PS Charles Hinga emphasized the importance of formalizing informal businesses in Kenya.
Speaking in Nairobi during the launch of Cytonn High Yield Fund, Mr. Hinga noted that county and national governments could attract new taxpayers by creating incentives for informal businesses to register with the Kenya Revenue Authority.
This, he said, would enable local companies to build capacity and compete for big-ticket jobs against foreign contractors.
Mr. Hinga cited the example of Ngokamka Company, a single entity formed by three Jua Kali associations, which was awarded a Sh122 million tender to make doors and windows for 1,370 housing units.
Today, Ngokamka Company has 10,000 employees and has evolved into a corporate structure that enables it to compete for big-ticket jobs.
“We forced three entities, Ngong, Kariobangi and Kamukunji Jua Kali associations to come together and awarded them a Sh122 million tender to make doors and windows for 1,370 housing units. They have since evolved into a single entity with 10,000 employees (artisans) called Ngokamka Company,” Mr. Hinga said.
He added that direct engagement with SMEs removes middlemen from public tenders, enabling Kenyans to benefit while giving State agencies access to low-priced quality products.
