Paul Kamau

The Developmental Impact of Asian Drivers on Kenya with Emphasis on Textiles and Clothing Manufacturing

Abstract (1251) Paul Kamau with Dorothy McCormick and Nicolas Pinaud Copyright 2009 The Authors. Journal compilation 2009 Blackwell Publishing Ltd.

Firm-level Perspectives on State–Business Relations in Africa: The Food-processing Sector in Kenya, Tanzania and Zambia

Experiences from developed and emerging economies inform us that close state–business relations (SBRs) are crucial for economic development and structural transformation. Based on the positive experiences from other parts of the world, most African governments have begun processes to establish collaborative SBRs. Amongst other initiatives, these processes include amendments to existing laws to facilitate public–private interaction, direct support to existing business associations (BAs). This article draws on an analysis of survey data from 210 local firms, complemented with qualitative data from interviews with 41 firms, 20 key informants and a range of secondary sources on the food-processing sectors of Kenya, Tanzania and Zambia. The article shows that businesses in these countries have limited policy influence, find policies and programmes to be inadequate when targeting the needs and requirements of local businesses and that BAs in these countries are poorly organised. In spite of initiatives taken by the states and other actors, including an increase in the number of formal relations between state and businesses, it is difficult to conclude whether SBRs are collaborative or collusive. The article contributes to the existing SBR literature by adding a firm-level perspective and by enhancing our knowledge on the usefulness of key theoretical approaches to these issues in an African context.

Social Capital as a Coping Mechanism for Women Small Scale Traders in the Informal Economy in Nairobi, Kenya

Gender relations are increasingly being transformed in the informal urban economy in Kenya. Women small scale traders (WSSTs) have had to cope by neither relying on their spouses as traditionally expected nor on profit maximisation. This paper argues that social capital is at the core of WSSTs business operation as their networks are sources of social support as well as capital and credit. WSSTs control their resources irrespective of their marital status. This paper is based on primary data collected from 398 WSSTs in five urban informal settlements in Nairobi between June and August 2015 using a mixed method approach. The study found that access to credit for WSSTs was a major handicap as the requirements by the credit institutions available were too stringent for small businesses due to requirement for guarantee and collaterals. WSSTs resorted to forming groups (merry go round or chamas (67.5%), women groups (27%) and associations including SACCOs (6%).) so that, besides other benefits, including networking, they could get financial credit. While many of these groups are not registered, they are mainly involved in giving loans and credit besides offering welfare support to their members. The spouses/partners have no say in the businesses. This Paper concludes that WSSTs belong to groups (chama) for social support and also financial support. They do not revert to their spouses/partners for support. The membership of the chama serves as guarantors for WSSTs to access credit. Thus interventions targeting WSSTs should have focus on the social capital development mechanisms as entry point. Equally the emerging gender dynamics of women having full control of their resources needs to be appreciated as an important turning point in gender relations and rights.