Jua Kali Sector Backs Government Digital Push to Formalise Informal Economy

Story By Evans Mutinda & Violet Kerubo
The Jua Kali sector has thrown its weight behind Government efforts to transform and formalise Kenya’s informal economy through digital platforms, saying the initiatives will give millions of informal workers greater visibility, access to opportunities and financial services.
Arch. Nyamai Wambua, HSC, Chief Executive Officer of the Kenya National Federation of Jua Kali Associations (KNFJKA), said the Government’s focus on Micro, Small and Medium Enterprises (MSMEs), particularly businesses operating at the bottom of the economic pyramid, was a major boost to the informal sector.
Wambua said the federation appreciated the support extended to the Jua Kali sector by the State Department for MSMEs, the National Industrial Training Authority (NITA), Nairobi Metropolitan Services and other Government ministries, departments and agencies under the whole-of-government approach.
He said a significant proportion of beneficiaries of Government programmes targeting employment and skills development were young people operating within the informal economy.
“Up to 68 per cent of workers in the informal economy are youth below the age of 25,” Wambua said, underscoring the need to place the sector at the centre of economic interventions.
The federation particularly welcomed the planned launch of the Fundi Locator app, saying the platform would address the longstanding challenge of informal workers remaining largely invisible in official labour-market statistics and systems.
Wambua said the State Department estimates that about 18 million Kenyans earn their livelihoods in the informal economy, yet many remain inadequately captured by the Kenya National Labour Market Information System.
He said the Fundi Locator platform would create visibility for skilled artisans and master craftsmen by allowing them to register their skills and connect directly with potential clients.
“This is actually an open labour market. It is a marketplace for your skills,” Wambua said.
The platform is expected to provide an alternative to the traditional system where artisans often congregate along streets and construction sites in search of casual work, with little certainty about available opportunities.
Under the digital system, a plumber, carpenter, mason or other skilled worker will be able to create a profile and become accessible to customers seeking specific services.
Wambua said the initiative would also support implementation of the National Strategy for Transformation of the Informal Economy 2026–2030, which identifies digitalisation as a key enabler of formalisation.
The strategy is aligned with International Labour Organisation Recommendation 204, which provides a framework for supporting the transition of workers and economic units from the informal to the formal economy.
Wambua said the Jua Kali sector had participated in the development and localisation of the strategy alongside the State Department, Government ministries and agencies.
He said digital tools such as Fundi Locator could move informal workers from the margins of the labour market into a more structured system where their skills, experience and economic contribution are recognised.
The federation also endorsed the planned revamp of the Haba Haba app, saying the digital savings platform could help informal workers develop stronger saving habits and plan for both personal and business needs.
Wambua said the flexibility offered by the platform, including the ability to access part of one’s savings when necessary, was particularly important to workers whose incomes fluctuate.
He urged Jua Kali workers across the country to embrace the digital platforms, saying they could provide practical tools for setting financial, personal and enterprise goals.
According to Wambua, the initiatives represent a shift from merely recognising the contribution of the informal sector to actively integrating it into Kenya’s wider economic and labour-market systems.
“The informal sector is always within reach, but not at the table in terms of being part of the structure,” Wambua said.
He said bringing informal workers into digital labour and financial systems would strengthen their livelihoods while contributing to the broader transformation of Kenya’s economy.
Strengthen the opening with Wambua
Tighten repeated federation references
Clarify the Fundi Locator benefits