Social Capital as a Coping Mechanism for Women Small Scale Traders in the Informal Economy in Nairobi, Kenya
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Date
2018-06
Authors
Muia, Daniel
Kamau, Anne
Kamau, Paul
Baiya, Harun
Ndung’u, Jane
Journal Title
Journal ISSN
Volume Title
Publisher
American Research Institute for Policy Development
Abstract
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.
Description
A Research Article in the Journal of Social Welfare and Human Rights
Keywords
Social capital, Informal settlements, Women small scale traders, Informal economy, Nairobi.
Citation
Muia, D., Kamau, A., Kamau, P., Baiya, H., & Ndung’u, J. (2018). Social capital as a coping mechanism for women small scale traders in the informal economy in Nairobi, Kenya.