Urban self-employment in Kenya: Panacea or viable strategy?

Abstract

Kenya's employment challenge is daunting, given the country's continuing rapid population growth and already significant unemployment. Government documents give high priority to the promotion of rural nonagricultural self-employment, especially to stem migration, and to self-employment in urban small-scale enterprises. Yet formidable obstacles to self-employment remain. After placing urban self-employment in its broader employment context, this study examines the barriers to entry and growth in self-employment, especially the difficulties encountered by small-scale, unregistered, nonagricultural activities in urban areas. The study then reviews existing policies and programs aimed at supporting such activities and points to the need for more comprehensive policy analysis and reform.