An Assessment of the Informal Sector Trade in Kenya
Dr. Seth Omondi Gor
Senior Lecturer, School of Economics, University of Nairobi
This study assesses the nature and practice of cross-border trade in
Kenya with a view to filling the information gap on its patterns and
key characteristics, a gap that has hitherto acted to hinder effective
policy formulation. The study relies on information from a number of
cross-border monitoring survey initiatives mounted by various institutions
over the years. The study finds that informal cross-border trade accounts
for more than 40 percent of the GDP and is therefore almost equivalent
to formal trade. Efforts should be made to conceive policy suggestions
that would optimize both formal and informal trade from the viewpoint
of the national economy.
Keywords: cross-border trade, exports, Horn of Africa, informal, Kenya.