THE CONTRIBUTION OF THE MICROENTERPRISE AND JUAKALI SECTOR TO KENYA’S ECONOMIC GROWTH

Since Kenya attained its Independence in 1964, the prospects of rapid economic growth fueled by not only the agriculture sector has been a key government and private sector priority. The push for a more diversified and liberal economy under Kenya’s third president Mwai Kibaki was welcome by local and regional business and trade stakeholders, leading to the achievement of diversification and expansion of the micro-enterprise and Juakali sector between 2010 and 2016 under Kibaki’s regime.

The gain’s however, were not sustainable and there has now been a prolonged period of stagnation of growth in the Juakali and Microenterprise in Kenya partly owing to prevailing global economic conditions occasioned by the global covid 19 pandemic from December 2019 that saw a decline in the import of input materials require by micro-enterprise such as textile, auto parts, steel, other tools and equipment necessary. Consequently the contribution of this sector to the economy declined affecting the revenue collected by the government from the sector.

According to a Kenya Economic survey report, the Juakali sector contributed about 25% to the GDP. The role of the informal sector cannot be over emphasized but the statistics should encourage a better structured approach to empowering the Juakali sector in Kenya with better access to financing for operators in the Jua kali sector. Training in the Juakali sector is also critical element in amplifying the contribution of the sector to the economy.

The government can leverage on new technology for effective knowledge and skill transfer in the Juakali sector integrated into already existing employment and skill programs such as AJIRA Digital an initiative by the government to foster acquisition of skills among Kenyan youth. The Kenya Industrial Enterprises governmental agency under the ministry of trade and development has also seem tremendous growth in its local industrial outreach programs in various regions. The K.I.E has offered working spaces and access to technology for many in the Juakali sector, a move that should be upscaled to reach more people in the Juakali sector such as carpenters, fabricators, ironsmith, artisans among others in an organized effort to expand the government and private sector contribution in improving the Juakali sector for local, regional and national development.