Informal Sector In Kenya

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Background of the study Most economies in the world consist of both formal and informal sectors. The concept of the informal sector has been present in Kenya for decades but gained its popularity after the 1972 ‘employment missions’ deployed by ILO to various developing countries after concerns about the persistent widespread unemployment in those countries. The Kenya employment mission in 1972 reported that the ‘traditional sector’ now known as the ‘informal sector’ had not just persisted but had expanded to include profitable and efficient enterprises as well as marginal activities. Since then the informal sector has grown and forms a critical part of Kenya’s economy. The 2002 ILC Resolution proposed the term ‘informal economy’ rather than…show more content…
They lack social protection, they cannot exercise rights at work and lack representation and voice in the workplace this makes them largely unprotected under the eyes of the law, insecure and vulnerable to work related and social risks that I shall indulge further. Though not everyone in the informal employment is poor, the largest percentage still remains poor and earns low unpredictable wages. To describe social protection in this study I shall use the definition provided by the Kenya National Social Protection Policy which defines it as: “…policies and actions, including legislative measures, that enhance the capacity of and opportunities for the poor and vulnerable to improve and sustain their lives, livelihoods, and welfare that enable income-earners and their dependants to maintain a reasonable level of income through decent work, and that ensure access to affordable healthcare, social security and social…show more content…
It is guaranteed by the Constitution under Article 43 as an economic and social right to be enjoyed by every citizen in Kenya. It is further grounded by Article 41 and Article 55 . Other legislations touching on this are the National Social Security Act, The National Hospital Insurance Fund Act, The Pensions Act, The Retirement Benefits Act and The Social Assistance Act. The policy framework on social protection is the National Social Protection Policy of 2012 which divides social protection into three distinct areas: Social security, Social Insurance and Social assistance. Social insurance refers to public schemes often employment based devised to achieve income maintenance of replacement by providing earnings-related benefits

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