Govt Launches Initiative to Enhance Social Welfare for Informal Sector Workers

Nairobi: The Kenyan government has announced a new initiative aimed at improving the social welfare of workers in the informal sector, recognizing its significant contribution to the national economy. The Cabinet Secretary for Labour and Social Protection, Dr. Alfred Mutua, introduced the Bottom-Up Economic Transformative Agenda (BETA), which seeks to provide comprehensive social protection for informal workers, who constitute a large portion of the country's workforce. According to Kenya News Agency, Dr. Mutua highlighted the importance of the informal sector, which contributes approximately 33.8% to Kenya's GDP. Speaking at the launch of the South-South Cooperation Project in Nairobi, Dr. Mutua emphasized that the government aims to address social protection gaps by leveraging digital transformation, in partnership with China's Ministry of Human Resources and Social Security (MoHRSS) and the International Labour Organisation (ILO). The project is designed to enhance policy design, governance, and operatio nal efficiency in social protection systems for informal workers. Dr. Mutua noted that the initiative will focus on extending social protection to the "missing middle" in society, a term used to describe those who are underserved by current systems. The government aims to ensure that informal workers have the same rights as their formal counterparts by creating a robust framework for social protection. Dr. Mutua reported that Kenya's informal economy comprises approximately 16 million workers, in contrast to 3.9 million in the formal sector. He also mentioned that over 5 million informal enterprises exist in the country, along with 6.4 million households engaged in agriculture on an informal basis. The lack of social protection leaves these workers vulnerable to various risks, including illness and climate-related shocks. The project, supported by a $8.4 million donation from China, seeks to improve social security policy formulation and promote the use of digital technology to enhance service delivery. Vic e Minister of Human Resources and Social Security of China, Li Zhong, stated that the initiative would expand assistance to Africa, providing new opportunities for China-Africa cooperation. Principal Secretary, State Department of Labour and Skills, Shadrack Mwadime, underscored the importance of collaboration in achieving dynamic social protection for workers. Additionally, Principal Secretary, State Department of Social Protection, Joseph Motari, revealed plans to establish a comprehensive database for informal workers to better address their needs. Caroline Mugalla, ILO Director of the Tanzania Country Office, praised Kenya's leadership in digital innovation, particularly in mobile money transfers, which have been integrated into social protection schemes to facilitate flexible payments.