The ‘Kadogo’ economy permeates all sectors

Business Counties Editor's Pick Nakuru

The ‘Kadogo economy’ has infiltrated all sectors of business in Nakuru City from the washing soap industry to cooking oil industry that has made dispensing machines that sell, as low as ten shillings to struggling families.

The Chairman of small-scale traders in the county, Johnson Ndegwa said all businesses are currently struggling in the county. And even the perceived successful ones have joined the kadogo economy because that’s where the poor are putting their scarce resources.

Giving the example of the dispensing oil machines that are now all over the city, he said small supermarkets that were hardly selling five liters of cooking oil per day, are now making good profits from the machines.

“If mama or the house-help is cooking and she realizes that there’s isn’t enough cooking oil, they simply dash out with a ten shillings’ coin and purchase some oil for that particular meal, while they think of the next,” he said.

Apart from the oil, he said the milk hawkers are now measuring for as little as ten shillings, which is enough to colour the children’s tea instead of taking daily black one.

As a result, he noted that kiosks in the estates were carrying out more brisk businesses compared to bigger shops because they have learned the art of small measurements.

But, he said there was a need for quantification of the measurements to prevent the exploitation of the poor.

By Veronica Bosibori

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