the key to growth

The bulk of Kenya's job growth last year was due to the informal economy, The Standard newspaper reports.

According to the Economic Survey released by the Planning Ministry, the country’s employment rate improved in private and public sector from 1.9 per cent in 2008 to 3.1 per cent and 2.4 per cent last year. Total employment excluding those in the rural small-scale agriculture and pastoralist activities went up by 4.5 per cent to 10.4 million last year. However, the informal sector, continued to lead the way by creating 390,400 jobs.

Though that is an impressive figure, the number of jobs produced by the informal sector actually declined from 2008, when informal employers accounted for 440,000 jobs.

Even as the informal economy still seems robust, it would be interesting to know why that decline in growth occurred.