The role of small scale industries in developing urban economies: A case study of Kisumu semi-urban areas

Abstract

The existance of small scale industries has beome an intergral part of urbanisation process both in , Kenya and other developing economies. Due to high planning standards and prohibitive regulations plus the nature of the industries, most of' these establishments are located in areas of uncontrolled development and markets. Available data suggests that this sector will continue to grow as long as there is still rural to urban migration which does not correspond to employment opportunities in the modern sector. At the same time, though the firms are small, their capital output are high and labour-rations are low, which provide better average Kenyan income than in marginal agriculture and some formal sector goods and services to the expanding low income groups in such areas . Howevor, there has been reluctance by the authorities to recognise and plan for this sector and frequently some of them have been efficiently harrased. This study is based on selected small-scale industries in Kisumu's semi-urban areas of Nyalenda,Manyatta and Kanyakwar aims at establishing the nature , size and role of the firms in! the urban setting.The major approach used was the standard universal enumeration of the firms and wi th 25% sampling an interview was conducted using questionnaire. From previous data,government publications and the author's observation relevant government policies are examined from which a set of recommendations are made. In the study, the following conclusions were recorded :-- 1. That the sector plays an important role in offering employment opportunities and as a means of promoting industrial entreprneurship in the indigenous people. 2. That some of the industries operate efficiently and provide incomes torelably well compared with employment in marginal agriculture and some formal activities. 3. That the sector provides requlred goods and services to the expanding urban population particularly the low income group. 4. That the industries exist in unsatisfactory environment which require locational review land use zoning of towns. 5. That there is need for review of the licensing system and building code to a accommodate the inevitable industries in the urban setting. 6:. There cannot be any single planning strategy to solve the problems posed or imposed by the sector but rather there is need coordinated planning to come up with an approach based on long-range planning.