A qualitative analysis of the influence of neoliberal policies on socio-economic vulnerabilities of informal women entrepreneurs in Kenya

The informal economy in Kenya is a significant source of livelihood, particularly for women. However, analysis of the women entrepreneurs in the informal economy reveals heightened vulnerabilities due to structural inequalities and gender dynamics. Since September 2022, Kenya has experienced a policy shift towards a new wave of neoliberal policies. This shift has been characterised by fiscal austerity, which has led to the removal of fuel subsidy, reduction of budgetary allocation to Fuel Stabilization Fund, increase in Value Added Tax (VAT) on fuel, and tightening of monetary policies. This article explored the financial and social reproduction vulnerabilities that informal women entrepreneurs face under this new policy environment. Evidence was drawn from qualitative analysis of a key informant interview and 20 in-depth interviews with informal women entrepreneurs in Nasha market, Nakuru City. This study reveals how these women grapple daily with shrinking incomes, limited access to affordable credit, and increasing debt burden. At household level, these women deal with reduced capacity for the provision of household needs and increased burden of unpaid care work. Despite these obstacles, they actively draw on their social ties and build financial resilience through participation in chamas, and rely on their social networks for childcare support.