Policy Brief No. 97 of 2019-2020 on Informal Sector's Response to Shocks: Lessons from Kenya

Abstract

The informal sector enterprises are affected by diverse shocks that substantially affect their operations. Most of these shocks tend to have drastic negative impact on the affected enterprises, leading to business closure, losses, sluggish recovery and low returns on investment. To survive through the effects of shocks or reduce the effect of such shocks, enterprises design or take up different shock coping mechanisms. Coping mechanisms for informal enterprises can be self-initiated or initiated by external actors such as the government and development partners...