Experts call for incentives for the informal sector

Trade experts are calling upon the Government to introduce incentives to encourage informal traders.

Ecobank Head of Research, Edward George, said the current strategy of curtailing informal traders is not sustainable as the sector is a major source of income for millions of Kenyans.

“The trade is often illicit, avoiding all taxes, regulations and embargoes, yet the network is remarkable in getting goods where they are needed. In order to encourage these traders to formalise their businesses, they need to be provided with genuine incentives,” said George.

George said informal trade paints a very small picture of overall trade flows on the continent, with informal trade being comparatively innovative.

George was speaking during the Ecobank commodity trade finance conference in Nairobi. Ecobank Kenya Managing Director, Ehuoman Kassi said East Africa’s economy is rapidly growing due to the expansion of the intra-regional trade.