Jua Kali is Kenya's treasure, who will cash in?
Opinion
By
Richard Muteti
| Mar 23, 2025
The Jua Kali sector is more than welding sparks, sawdust, and grease-stained overalls-it's Kenya's economic lifeblood, pulsing with ingenuity, grit and enterprise. Employing over 80 per cent of the workforce, it should be the backbone of national growth.
Yet, despite its power to drive industrialisation and widen the tax net, it remains the underdog-underfunded, undervalued, and entangled in systemic hurdles. Will Kenya finally harness its full potential, or will this economic powerhouse remain in the shadows? For years, policymakers have danced around the informal sector, offering lip service but little in the way of transformative action. If Kenya wants to scale up its economic fortunes, three bold interventions must happen.
Make Skills Count - Many artisans possess unmatched expertise but lack formal certification. Fast-tracking Recognition of Prior Learning (RPL) will open doors to bigger contracts, financial inclusion, and global opportunities.
Money Moves Matter - Traditional financing shuts out Jua Kali entrepreneurs. A structured credit and grant system tailored to their needs can inject crucial capital and drive sustainable growth.
Buy Kenya, Build Kenya - It is time to stop treating Jua Kali as a side hustle and integrate it into Kenya's industrial framework.
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The irony is painful: policymakers celebrate the ingenuity of Jua Kali artisans, yet they do little to integrate them into the mainstream economy. Walk through any industrial area, and you will find small-scale manufacturers designing everything from furniture to metal works, car parts to leather goods. These products power Kenya's economy, but the artisans behind them remain trapped in financial exclusion, operating in makeshift workshops.
Formalising the Jua Kali sector is not just about taxation - it is about creating an enabling environment where artisans can scale up, export their products, and become key players in regional trade. Kenya cannot talk about industrialisation while side-lining the very people who form its bedrock.
The numbers do not lie. A thriving informal sector translates to a thriving economy. In China and India, small-scale manufacturers are heavily incentivised because they contribute significantly to GDP. Kenya can learn from this by creating a structured approach to funding, training and policy inclusion.
Instead of struggling under layers of bureaucracy, Jua Kali enterprises should have direct access to industrial funds, tax reliefs, and business development programs. By doing so, Kenya will not only create millions of jobs but also expand its export base.
Political goodwill is the missing link. From the President to Governors, MPs, and County Assemblies, leaders must shift from mere rhetoric to strategic action. The Jua Kali sector is not asking for handouts-it is demanding economic justice. When supported, it can deliver jobs, reduce poverty, and build a self-sufficient manufacturing ecosystem.
Kenya has a unique opportunity to make Jua Kali the engine of industrial transformation. By embracing policies that favour local manufacturing, investing in modern infrastructure, and removing financial barriers, the government can unlock billions in untapped potential. If not now, then when?
-The writer is CEO of Kenya National Federation of Jua Kali Associations and Regional Project Manager for EAC Jua Kali Exhibitions