Discussion Paper No. 333 of 2024 on Revolutionizing Informal Labour Market through Fourth Industrial Revolution: A Case of Jua Kali Sector

Abstract

Across the world, countries are investing in the 4IR technologies by recognizing new niches for different industries and leveraging them to achieve sustainable growth and development. The Jua Kali sector in Kenya is a significant driver in economic growth and development, the government recognizes the need for its revolutionization by tapping into the 4IR technologies to achieve the sector’s full potential. There have been efforts to embrace the emerging technologies presented by 4IR, but the question of durability and sustainability persists. The study findings indicated a most probable future that leverages 4IR technologies to facilitate an increased rate of invention and innovation, increased access to finance, increased 4IR technology adoption, growth in digital literacy, and financial inclusion in the Jua Kali sector. However, a major impediment to achieving this future would be inadequate infrastructure. To revolutionize the informal Jua Kali sector through 4IR technologies, the government needs to support innovation and technological advancement among Jua Kali firms through training and capacity-building programmes. To enhance financial inclusion with increased access to financial capital the government can support and promote microfinance institutions that provide small loans and financial services tailored to the needs of Jua Kali entrepreneurs. In addition, the adoption of 4IR technology can be increased by the government offering subsidies, grants, and tax incentives to Jua Kali firms for investing in 4IR technologies. Further, there is a need to enhance digital literacy by deploying mobile training units equipped with computers and Internet access to reach Jua Kali workers in remote or underserved areas.