The informal sector has become increasingly important as a source of income and
employment in Kenya. This contrasts with the declining performance of the formal sector,
and underscores the sector's potential for absorbing the country's increasing labour force
as more households become dependent on it. One important attribute of the sector is that
it has become a major employer of the female labour force in the country. This study
investigated the factors determining the participation of women in informal sector activities
given a range of other available labour market options.
The results show that education is one of the important factors determining women's
participation in the different categories of the labour market. The study concludes that
efforts to address the problem of women's access to the labour market should focus on
improving their access to education as one of the important factors for improving their
human capital. Given the nature of the informal sector, and the fact that access to the
labour market is an outcome of the interaction between demand and supply, addressing
female participation in the sector may require addressing the demand side of the Kenyan
labour market in addition to the factors expected to explain labour market participation.