Encouraging Kenya's leaders to streamline or simplify the economy

In his weekly column "Hustlenomics," the author takes a unique approach to exploring the economic lives of ordinary Kenyans. The focus is on the daily hustles, the small businesses, and the informal sector that form the backbone of the Kenyan economy.

The column steers clear of the myth of informality as a direct path to job creation or the glorification of Small and Medium-sized Enterprises (SMEs) in developed countries. Instead, it highlights the potential of formalization, not just for taxation purposes, but for long-term benefits such as social security, pensions, higher standards of living, and even longevity.

A striking contrast is drawn between Kenya and developed countries, where high school dropouts are not typically expected to become entrepreneurs, while in Kenya, this is a common expectation. The author notes that in developed countries, more innovation and technology tend to reduce hustling jobs and increase high-quality jobs that require less muscle power but still pay better.

The author also points out the many new SACCOs (Savings and Credit Cooperative Societies) in Kenya and wonders if they could be a model to use in all sectors. An interesting observation is made at a petrol station in the US's Pacific Northwest, where checking tyre pressure costs two dollars (about Sh260), while in Kenya, this service is free and someone does it for you.

The author questions why formalization is not being tried in Kenya and who will spearhead it. He suggests that if Kenyans focus on innovations and ingenuity in the informal sector, they could produce their own SAPs, Hyundais, BYDs, and Facebooks and Equities.

The author has been writing "Hustlenomics" for eight years, offering insights into the Kenyan economy and advocating for the formalization of the economy to capture creative energy and make it easy to scale up enterprises. Despite not mentioning a specific person responsible for leading the formalization of the economy in Kenya, the author's work serves as a call to action for those who can drive this change.

Interestingly, during a visit to a developed country, the author wondered if they could have written the column if they were not in Kenya, as there were too few hustles to observe. This underscores the vibrancy and resilience of the Kenyan informal sector, which is now seeing Facebook emerge as a vibrant marketplace.

In conclusion, the author's work encourages a rethinking of the traditional path to economic growth in Kenya, advocating for a more formalized economy that can harness the creative energy and potential of the informal sector.