State unveils initiative to boost social welfare for informal sector workers
IAN CHEPKUTO AND SHARON ATIENO-KNA
The Government is committed to improving the social welfare of all workers in the informal sector, Cabinet Secretary for Labour and Social Protection Dr. Alfred Mutua has said.
Dr. Mutua stated that the government has created a comprehensive manifesto for the Bot tom-Up Economic Trans formative Agenda (BETA), aimed at enhancing the socio-economic welfare of Kenyans.
The CS said, “The manifesto recognizes that the informal sector is at the core of economic development. It contributes ap proximately 33.8 percent to the GDP.”
The CS made these re marks at a Nairobi hotel during the launch of the South-South Cooperation Project dubbed “Extending Social Protection to Workers in the Informal Economy in Lao PDR and Kenya While Leveraging Digital Transformation through South-South Co operation.”
The project aims to improve the welfare of workers in the informal sector while leveraging digital technology.
It is a partnership be tween the Ministry of Human Resources and Social Security (MoHRSS) of China and the Inter national Labour Organisation (ILO), designed to address the challenges of expanding social protection through a collaborative project that focuses on improving social protection for workers in the informal economy.
The initiative seeks to leverage South-South co operation to enhance pol icy design, administrative governance, and operational efficiency in social protection systems.
He said, “Cooperation between the two entities will bring substantial experience and proven strategies to this project, with the ultimate aim of expanding social protection to the unreached in society in Kenya.”
Mutua said the government intends to ensure that informal workers have the same rights as formal workers by building a comprehensive framework to extend social protection coverage to workers in the informal and rural economies.
Dr. Mutua stated that approximately 3.9 mil lion workers in Kenya are in the formal economy, while around 16 million are engaged in the informal economy.
“There are more than five million informal enterprises in the country, alongside an additional 6.4 million households relying on agriculture for their livelihoods,” he noted.
“I am reliably informed that in Kenya, around 3.9 million workers are in the formal economy, whereas approximately 16 million are active in the informal economy.
“Further, we take cognizance that the informal enterprises in Kenya are estimated to be more than five million, with an additional 6.4 million households in the country, practicing agriculture to earn their livelihoods on an informal basis,” he added.
Mutua regretted that the informal economy in Kenya faces significant challenges due to low social protection coverage.
“The exclusion from social protection has left informal sector workers vulnerable to risks like illness, disability, and climate-related shocks, preventing them from accessing essential bene f its,” he said.
Mutua expressed his gratitude to the International Labour Organisation and the Government of China for their significant support to Kenya.
He noted that their pro vision of resources and technical assistance is crucial for extending social protection to informal sector workers.
Mutua announced that his Ministry, in collaboration with China’s Ministry of Human Resources and Social Security (MoHRSS) and the International La bour Organisation (ILO), is addressing challenges in expanding social protection.
The joint project, Mutua said, will focus on improving support for informal economy workers in Kenya and Lao PDR while promoting the Global Development Initiative through South-South and Triangular Cooperation.
He said the initiative aims to enhance policy design, governance, and operational efficiency in social protection systems.
The CS emphasized that the partnership would bring valuable experience and proven strategies, ultimately seeking to extend social protection to underserved populations in Kenya.
Vice Minister of Human Resources and Social Security of China, Li Zhong, China, through the Ministry of Human Resources and Social Security, in collaboration with the International Labour Organisation, has been jointly carrying out South-South cooperation projects with a donation amount of US$8.4 million.