Globally, the Covid-19 has had a deleterious effect on the socio-economic fabric of most societies. From well-established conglomerates to small-scale firms, most businesses are barely operating as the worldwide prevalence of the coronavirus continues to stall activities. Kenya is not an exception, as high-end to small-scale entities have either ceased operations or are partially functioning. Unsurprisingly, the government is also struggling to sustain its activities, as its normal fiscal pragmatism continues to depreciate inexorably.
Amidst all the shocks and confusion that have encumbered most people, jua kali traders and service providers such as boda boda operators, have not been severely affected. For a long time, small-scale business operators in the so-called jua kali sector have always been misconstrued as people who cannot formulate smart ideas. It is from such misconceptions and disparaging perceptions that these people came up with self-help groups that have, since then, sufficed their financial needs and enabled them to aggrandise their economic worth.
When such groups started, the main intention was to empower members and enable them to conduct normal activities such as paying school fees for their children and venturing into small-scale businesses. However, the high level of discipline, commitment and organisation that sprouted from the small beginnings morphed into a complex system characterised by structures that now enable such groups to even purchase highly valued property such as land and passenger service vehicles.
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It is plausible to note that the ‘jua kali’ traders have managed to survive the effects of the Covid-19 thanks to their self-help groups, which have somehow evolved into micro-finance entities. Most of their contributions are channeled towards saccos to generate profits, as members are encouraged to take loans. While the coronavirus has scared most banks and even mobile money schemes from offering loans to their loyal customers, jua kali traders are assured of financial assistance from saccos, as they use their regular remittances as leverage. Besides, most of their businesses have been largely uninterrupted, as their products and services are essential.
In as much as most Kenyans are taking austerity measures to adapt to the new normal, they still have to buy vegetables, use motorbikes, and board matatus among other basic obligations. Although there are many self-help groups initiated by different categories of people, those started by jua kali traders have survived the acid test because of unrivaled discipline and commitment. Most groups, especially those started by graduates, have degenerated into failed initiatives due to excessive and needless deliberations, intermittent disagreements, and failure to adhere to the stipulated rules.
On the other hand, the jua kali groups have succeeded because of strict observance of the regulations and measures that help them desist from coming up with a plethora of Utopian and impractical ideas. Their well-organized structures have acted as crucibles that have mitigated them against the scorching impact of the Covid-19. While they can still conduct their businesses with little interference, their shares in saccos are a guarantee of financial stability.
Livingstone Eshitika is a research consultant.
