In Kenya, the currency is known as shilling (KES), and it is divided into 100 cents, similar to the United States. One US dollar is equivalent to about 141 KES (The Royal Mint Museum, 2023). Kenya’s monetary policy is regulated by The Central Bank of Kenya to maintain cost stability in the economy. The Central Bank of Kenya is responsible for stabilizing the cost of goods and services to further encourage the purchase of Kenyan supplies. There are three branches of The Central Bank of Kenya located in Kenya; two locations in the country’s capital Nairobi, and one location in Kapseret, a constituency in Kenya (Central Bank of Kenya, 2023). Fostering liquidity and stability in the bank sector, The Central Bank of Kenya supervises the commercial banks of Kenya by providing a regulatory framework of legal guidelines that govern the institutional operations. For example, commercial banks in Kenya offer individuals and small, mid-size business organizations financial services such as checking and saving accounts, loans and mortgages, foreign exchange and credit creation (Kori et al, 2020). Through the financial services offered by the bank, the civilians of Kenya can utilize the financial systems to cover their expenses and make investments.Â
      Kenya is the largest, most advanced country in Central and East Africa. With easy connectivity to the Eastern Africa region, Kenya is considered a distribution base for Africa, Europe, the Middle East, the Indian Ocean Islands, and South Asia (Ministry of Foreign and Diaspora Affairs, 2023). Improved infrastructure developments, positive demographics, aggressive expansion of local and international retailers, improvements in the ease of doing business, recognition of Kenya as a Regional Hub, and the accessibility to affordable retail spaces are contributing factors to growth within the economic sector for the country (Kenya Retail Support, 2021).
      Sixty seven percent of Kenya’s retail industry is considered informal (Mabidlala, 2021). Informal retailing refers to the selling of goods and services that are provided by independently owned businesses on the streets, sidewalks, and public places. In Kenya, the informal retail sectors are called Dukas (Technoserve, 2020). Locals commonly purchase household goods, food, personal essentials, and second-hand clothing known as “mitumba”(Kamau, 2021). These businesses tend to be small in scale, family-operated, labor-intensive and rely on indigenous resources (ILO, 2021). Approximately 250,000 informal businesses are operating nationwide and mitumba, particularly clothing from Western countries, are generating the most frequent business (Kamau, 2021). Although informal and operating outside of legal and administrative rules, Dukas provide a livelihood presence of versatility, style, and distinctiveness to the communities in Kenya (Technoserve, 2020). The wholesale trade and retail industry in Kenya is extremely connected with Kenyans’ labor and social-economic status. The business owners that are avoiding various costs due to insufficient finance or expensive expenses are contributing to compromising Kenya’s economy. Currently, there is an increased rate for personal tax in Kenya under the Finance Act of 2022 (EY Global, 2022).
Page Author: Ritchy Isaac
