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Wholesale and retail trade are among the sectors that link production and consumption within the Kenyan economy. However, the sector is characterized by many informal players,a large number of medium-scale retailers and a few large scale supermarket chains located in urban centres.
The high levels of informality have the potential for several kinds of market distortion, particularly those relating to taxation, labour employment and produce marketing; and of course lead to lower tax revenues. Due to the informality of the sector, most of the supply chains in this sector are highly fragmented and involve millions of small producers and arbitrage traders, characterized by poor forward and backward linkages leading to 30- 40% wastage.
The County shall invest in mechanism in both systems (i.e. reduce number of licenses) and infrastructure ( such as bulking centres) that will enhance formality so as to make these supply chains efficient, and subsequently provide more permanent quality jobs.
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