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The law-growth nexus - Phase III: Labour law and the enabling business environment for MSMEs in Kenya - Final Evaluation

eval_number:
2639
eval_url:
https://webapps.ilo.org/ievaldiscovery/eval/2639
lessons_learned:
themes:
theme:
Social protection
category:
Social Protection

comments:
Programme managers planning projects supporting decent work in the informal MSME sector and social protection managers.
challenges:
There were opportunities to enhance the social protection floor in the Matatu informal economy by building on the existing and trusted informal social protection mechanisms available to drivers and conductors. For example, there was reluctance by drivers and conductors to contribute to the formal social protection schemes (National Health Insurance Fund (NHIF) and National Social Security Fund (NSSF)) because they did not fully understand how they stood to benefit from contributing to such schemes, nor were they content that their money would retain value. Besides, they contributed to an informal social protection scheme, ‘harambee’, from which they have recourse to assistance in times of distress (funeral support, medical, during periods of absence from work due to funerals, illness etc.) The concept and practice of ‘harambee’, is widely used in Kenya and offers an entry point to expanding social protection to the informal sector which could have been explored in the labour aspect regulations.
success:
Exploring and supporting existing informal social protection systems among informal workers has the potential to more easily scale up availability of social protection to wider population of the informal sector targeted. This is because these are trusted, easily accessible and meet their needs as compared to their perceptions of more formal and government established social protection vehicles.
context:
LGNII support for legislation that provides a decent work framework in the Matatu sector of Kenya did not sufficiently consider the already existing and successful informal social protection system developed and implemented by the Matatu drivers and conductors.
description:
A project looking to target MSMEs in the informal economy to remove decent work deficits including social protection, needs to also consider existing informal social protection systems that workers in the sector are contributing to as an entry point to expanding social protection to the informal economy.
administrative_issues:
When designing projects aimed at formalizing the informal sector, provisions should be provided for a situation analysis of existing social protection systems for informal workers and consider how these can be strengthened either through legislation or better organisation.
url:
https://webapps.ilo.org/ievaldiscovery/lessons/223465

location:
country:
Kenya
region:
Africa

eval_title:
The law-growth nexus - Phase III: Labour law and the enabling business environment for MSMEs in Kenya - Final Evaluation
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