The juakali artisans backgrounds,survival strategies, capital accumulation pattern and scales of production.

Abstract

This is a study of the "Jua Kali" sub-sector of the Kenya informal sector - which has been the subject of much debate and attention from many sections concerned with National Development. The study focused on the socio-economic backgrounds of the artisans and how these affect their performance in the sector; how the artisans survive in business amidst stiff competition amongst themselves and from the forma 1 sector; and the possibility of capital accumulation and expansion of the sector. The data were gathered from the areas with Jua Kali activities in Nairobi, through administration of a questionnaire to the targeted sample respondents. The main statistical techniques used in data presentation and analysis were frequency tables, cross­ tabulations, correlations and multiple regression analysis. On backgrounds some of the findings were that while the mean age of the artisans was 34 years, the majority (81.5%) of the proprietors were aged between 26 and 34 years. The sector is male dominated. The artisans had lived in Nairobi for an average of 12 years. Their mean number of years of formal schooling was 9 years. 55.8% of the artisans had multiple skills, but only 44.2% had trade test certificates. For these skills, 97% of the artisans had taken between and 3 years in training. The majority of the proprietors had saved up to KShs.6,000, for purposes of investing in Jua Kali production. These proprietors had formerly been engaged in various occupations, such as casual farm labour (18.6%), helping r n father's land (25.0%), skilled employees of the formal sector 12.5%), self employed in the f6rmal sector (3.6%) and unskilled employees in the formal sector (39.3%). Their earnings before entry into Jua Kali averaged KSh.854. From our findings and the results of hypothesis testis, the artisans' socio--economic backgr-ounds affect their rerformance in the sector. Regarding survival in business, there was a lot of competition. On average, there were13 competitors foreach artisan. Further, 8.69% of them were competing with 42 others a round their sheds and 2.6% of them were facing competitin all from between 70 and 80 others around them. However, there was no prevalent mode of fighting the competition, for the tact i cs they claimed to use were found to be diffused and impermanent. Yet, they had survived in business for an average of 7.65 years. artisans utilized family labour ln production. 26.7% of the Of those who utilized it, 80.8% did not pay for it. Further , most of the employees in Jua Kali are underpaid, considering the hard tasks they perform. For example, among the wood workers, 75.7% work for between 10 and 11 hours a day, and 56.25% of the metalworkers work for between 10 and 12 hours a day. Further, most work all the week round. For this, they get paid an average of KSh.925 per month, compared to the average proprietor earnings of KSh.2,347 - and they all basically perform, Sh . 3600 worh of capital Over half of the operators (55.4%) had expansion of their undertakings as the goal they were pursuing, though lack of sufficient demand for their products forced the Jua Kali firms in general to operate at an average of 41% capacity. From the findings and hypothesis testing, capital accumulation and expansion of the Jua Kali sector were found to be affected by the Artisans' initial capital, personal drive, and t,he lengths of time the artisans had operated Jua Kali businesses. The policy implications were that we need a broader planning base to promote the Jua Kali sector, with clear 1y stated targets of what we want to have achieved from the sector in various periods of time. Capital and financial assistance, as well as organizational guidance based on the existing set-up are required, while at the same time ensuring that the artisans are left to operate autonomously.