In Kenya’s bustling streets, informal workers such as motorbike taxi riders, hawkers and small traders are increasingly forced to pay police officers or county inspectors for the privilege of operating their businesses. The payments are not mandated taxes or official fines, but informal levies that have become a routine part of daily commerce.
These unofficial charges are demanded by law‑enforcement and local officials who, according to the report, may ask for money simply to allow the worker to continue their activity. The practice is widespread across urban and peri‑urban areas, affecting a significant portion of Kenya’s informal economy.
The World Bank estimates that such payments can erode up to 20 percent of an informal worker’s daily earnings. This loss represents a substantial financial burden for individuals who already operate on thin margins.
“Informal workers can lose up to 20 percent of their daily earnings this way,” the World Bank notes.
Kenya’s informal sector, which employs a large share of the country’s workforce, has long been a vital source of livelihood. However, the added cost of unofficial payments threatens to undermine the sector’s contribution to poverty reduction and economic resilience.
<small>Source: AllAfrica — read the original story there.</small>
