Indicator 8.3.1 Proportion of informal employment in total employment, by sector and sex

8. Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all

8.3: Promote development-oriented policies that support productive activities, decent job creation,

entrepreneurship, creativity and innovation, and encourage the formalization and growth of micro-, small- and

medium-sized enterprises, including through access to financial services

8.3.1: Proportion of informal employment in total employment, by sector and sex

Proportion of informal employment, by sector and sex

2024

1.1.1, 1.3.1, 8.5.2

Kenya National Bureau of Statistics

Kenya National Bureau of Statistics

Senior Manager, Labour and Price Statistics

Labour and Price Statistics

Production and dissemination of labour and price statistics

+254-20-3317583, +254-20-2911000/1, +254-20-3317612/22/23/51

30266-00100, Nairobi- Kenya

dps@knbs.or.ke

DEFINITION, CONCEPTS, AND CLASSIFICATIONS

This indicator presents the share of employment which is classified as informal employment in the total economy, and separately in agriculture and in non-agriculture.

Concepts:

Employment comprises all persons of working age who, during a short reference period (one week), were engaged in any activity to produce goods or provide services for pay or profit.

Informal employment comprises persons who in their main or secondary jobs were in one of the following categories:

- Own-account workers, employers and members of producers’ cooperatives employed in their own informal sector enterprises (the characteristics of the enterprise determine the informal nature of their jobs)

- Own-account workers engaged in the production of goods exclusively for own final use by their household (e.g. subsistence farming)

- Contributing family workers, regardless of whether they work in formal or informal sector enterprises (they usually do not have explicit, written contracts of employment, and are not subject to labour legislation, social security regulations, collective agreements, etc., which determines the informal nature of their jobs)

- Employees holding informal jobs, whether employed by formal sector enterprises, informal sector enterprises, or as paid domestic workers by households

For the purpose of classifying persons into formal or informal employment for this indicator, only the characteristics of the main job are considered.

An enterprise belongs to the informal sector if it fulfils the three following conditions:

- It is an unincorporated enterprise

- It is a market enterprise

- The enterprise is not registered or the employees of the enterprise are not registered or the number of persons engaged on a continuous basis is below a given threshold.

Percent

Different versions of The System of National Accounts (1968, 1993 and 2008 SNA)

International Standard Industrial Classification (ISIC 4) of all Economic Activities

Kenya Standard of Industrial Classification (KESIC 6)

DATA SOURCE, TYPE AND DATA COLLECTION METHOD

Chapter 3 in Economic Survey report

Surveys

2023

April every year

Household

Kenya National Bureau of Statistics

According to the Statistics Act of 2006, Kenya National Bureau of Statistics is mandated to collect, compile, analyze, publish and disseminate official statistics for public use

In contexts where social protection coverage is limited, social security benefits (such as unemployment insurance) are insufficient or even inexistent, and/or where wages and pensions are low, individuals may have to take up informal employment to ensure their livelihood. In these situations, indicators such as the unemployment rate would provide a very incomplete picture of the labour market situation, overlooking major deficits in the quality of employment. Statistics on informality are key to assessing the quality of employment in an economy.

The considerable heterogeneity of definitions and operational criteria used to measure informal employment.

Proportion of informal employment in total employment= (Informal employment)/ (Total employment) ×100

Proportion of informal employment in agriculture= (Informal employment in agricultural activities)/ (Total employment in agriculture) ×100

Proportion of informal employment in non-agricultural employment= (Informal employment in non-agricultural activities)/(Total employment in non-agricultural activities) ×100

Engaging stake holders and administrative data providers such as:

Trend analysis

The Bureau employed use of best standards and compilation guides when coming up with the reports

The Kenya National Bureau of Statistics is ISO certified based on 9001:2015 Standard requirements. The processes of compilation, production, publication and dissemination of data, including quality control, are carried out following the methodological framework and standards established by the KNBS, in compliance with the Internationally acceptable standards

The Bureau adheres to KeSQAF that ensures that statistics produced meets the needs of the users

The KNBS adheres to Kenya Statistical Quality Assurance Framework (KeSQAF) that underlines principles to be assured in managing the statistical production processes and output.

Data consistency and quality checks are conducted through Technical Working Groups (TWGs) before publication and dissemination.

Data is in Chapter 3 of the Economic Survey Report

None

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