Economic Insights on Kenya's Informal Sector

The Kenya Economic Report 2024, prepared by KIPPRA, reviews Kenya's economic performance and prospects. It highlights growth in GDP, driven by agriculture and favorable policies, and forecasts continued growth. Challenges include low productivity in MSMEs and manufacturing, and the need for strategic partnerships and technology adoption. The report emphasizes improving public service delivery and leveraging digitalization in the informal economy to enhance productivity.

What is the main theme of the Kenya Economic Report 2024?

• Improving healthcare infrastructure

• Increasing agricultural exports

• Reducing fiscal deficit

• Enhancing productivity for sustainable inclusive growth

What was the GDP growth rate of Kenya in 2023?

• 6.1%

• 5.6%

• 5.7%

• 4.9%

Which sector experienced a strong rebound due to favorable weather conditions?

• Tourism

• Technology

• Agriculture

• Manufacturing

What is the projected economic growth rate for Kenya in 2024?

• 6.1%

• 5.7%

• 6.0%

• 5.6%

What is a major challenge for labor productivity in MSMEs?

• Excessive government regulation

• Over-reliance on foreign labor

• High technology use

• Inadequate research and development

What is a key factor for unlocking economic potential in arid counties?

• Higher taxation

• Strategic partnerships and technology transfer

• Increased agricultural output

• Tourism development

What is the role of digitalization in the informal economy?

• It decreases market competition

• It increases labor productivity

• It reduces employment opportunities

• It leads to higher taxation

What is necessary to improve digital infrastructure in Kenya?

• Expanding broadband and electricity connectivity

• Reducing internet access

• Increasing import tariffs

• Limiting foreign investment

How can female entrepreneurs in the informal economy be supported?

• Through government subsidies

• By reducing competition

• By providing tax incentives

• Through mentorship and networking avenues

What is the contribution of the informal economy to total employment in Kenya?

• 60%

• 70%

• 50%

• Over 80%