Informal Markets and Income Levels of Vegetable Vendors’ Households in Rural Western Kenya

Ruth Orlale – Kisii University
Peter Gutwa Oino – Kisii University
George Mose – Muranga University of Technology
Corresponding Author: komfort8@yahoo.com

Abstract: The paucity of literature on the contribution of the informal market of vegetable vendors on improving the income level of households in rural areas forms the basis of this paper. Informal markets play a significant role in the informal economy in rural areas. However, there are no conclusive evidence that set a clear causal relationship between the informal market and the income levels of rural households rendering vegetable vendors invisible, especially in rural areas that are believed to heavily rely on on-farm activities for their livelihoods. Using a descriptive approach on a sample size of 103 traders in Kapsoit and Ahero markets the study shows that vegetable vending had a statistically significant influence on household income levels. The study established that vegetable vending in the informal market was gendered and dominated by more women 90% than men 10%. Findings also revealed that vegetable vending was a major source of income among the majority (67%) of the vendors’ households. On average a vendor earns Kshs 300 daily from the vegetable vending business and spends between Kshs 150-200 daily. The study concludes that vegetable vending in the informal market presents a lucrative income-generating activity that should be embraced and supported by the government through targeted investment, policy, and training. The authors recommend that Informal market key players such as the county government trade and commerce department should introduce entrepreneurial training for vegetable vendors to increase their business skills and income management.