Making Do: Innovation in Kenya's Informal Economy

Page 73

Making Do A Living Organism

62

ASSOCIATIONS BUSINESS ACTIVITIES

42%

16%

Finance

Training

5%

5%

New products

Marketing

16% Other

ADVOCACY ACTIVITIES

26%

21%

Obtaining sites

Raising complaints

21%

11%

Protection from harassment

Obtaining services

5%

11%

Group licensing

Other

The most advanced form of cluster linkages is associations among artisans. The first incidence of associations in Kenya occurred in 1985 when President Daniel Moi first recognized the jua kali sector during his visit to Kamukunji.56 He declared that the government would provide sheds to all the microenterprises, but for efficient allocation they would have to form associations. From that day, jua kali associations were doomed to fail due to the political nature of their formation. Jua kali associations have a poor record of success for a number of reasons.57 Firstly, members tend to be dissatisfied with the services provided. Secondly, leaders are sometimes corrupt, or at least appear to be since they tend not to be elected democratically. And thirdly, association leaders are not trained in how to provide value to their members. Associations typically comprise geographical groupings of artisans of various, sometimes unrelated, trades. Members are required to pay regular dues and attend meetings. In return, the associations promise to provide a range of services, including loans, political representation, or bulk purchasing of producer inputs. Dr. Dorothy McCormick and Dr. Mary Kinyanjui of the University of Nairobi distinguish between services that are collective and ones that are individual-focused. Because many of the services tend to be collective—most advocacy activities fall under this category—the results may not be immediate or visible to members. Furthermore, since members are from a range of trades, there is rarely a consensus on their needs. As a result of this mismatch—whether apparent or real—between needs and services, members are often left dissatisfied. Attempts to provide particular services have had mixed results and vary from one association to another. One of the most effective advocacy efforts has been in business licensing; associations have been able to interface with municipal governments to obtain group business licenses that allow its members to operate legally. Loans, a business activity, have also seen some success. Groupbased financial instruments, such as rotating savings and credit

Figure 4.4 Association Activities. The charts show the percentages of associations that engage in various business development and advocacy activities. Source: McCormick et. al., 2003.


Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.