Protecting the Informal Economy & SMEs: What Company Secretaries Can Do
Kenya’s informal economy, also known as the Jua Kali sector, powers the nation’s workforce, employing around 80% of workers and contributing approximately 30% of total employment and 3% of GDP. Yet, this dynamism often exists outside formal regulation, leading to challenges around contracts, legal protections, and labour compliance. As Kenya steers informal operators toward formalization, company secretaries can play a vital role in bridging this compliance gap.
The Jua Kali & SME Reality
Approximately 7.4 million MSMEs in Kenya make up 93% of the labour force, yet many remain informal due to compliance burdens.
By offering secretarial support tailored to small and informal enterprises, professionals can build the foundation for formal economies that respect workers' rights, improve legal security, and unlock growth opportunities.
Key Secretarial Support for Informal Players
Company secretaries can provide simple, practical services to help Jua Kali artisans and small firms step into legal compliance:
Area: Simple Contracts
Support Structure: Draft basic agreements (e.g., service contracts, supplier terms, employment letters)
Impact: Reduces disputes, secures payment.
Area: Statutory Registers
Support Structure: Maintain registers of directors, shareholders, beneficial owners for SMEs
Impact: Enables transparent ownership.
Area: Labour Law Compliance
Support Structure: Ensure contracts comply with the Employment Act (leave, rest days, wages)
Impact: Protects workers, avoids penalties.
Area: Tax & e-Citizen Filing
Support Structure: Assist in tax registration, filing annual returns
Impact: Ensures compliance.
Area: Licensing Support
Support Structure: Guide on required permits and renewals (business license, health, signage)
Impact: Facilitates formal entry into markets.
Area: Record Keeping
Support Structure: Cloud-based document management systems to keep board minutes, resolutions, annual returns, and compliance filings organized, current, and securely backed up
Impact: Helps futureproof the business.
Area: Advisory & Coaching
Support Structure: Train on regulations, record-keeping, beneficial ownership obligations
Impact: Builds capacity and trust.
Why This Matters for SMEs & Jua Kali
Legal Protection & Access to Finance
Contracts guard against non-payment; statutory compliance ensures credibility for loans and grants.Worker Well‑Being & Reputation
Proper employment terms build trust, protect employees, and lower regulatory risk.Growth & Market Opportunities
Formal status enables access to formal tenders, supply chains, and public–private partnerships.Compliance Transition Made Simpler
Secretarial support breaks down bureaucratic barriers for informal businesses, increasing longevity and economic stability.
Practical Steps a Company Secretary Can Offer
Step 1: Quick Audit
Determine if the business needs contracts, licenses, registers, or labour compliance.Step 2: Prioritize Needs
Tackle contracts and statutory registers first, plus PAYE for businesses employing staff.Step 3: Set Up Processes
Use simple templates; digitize documents and back them up securely.Step 4: Training & Support
Offer short up-skilling sessions on record management, contracts, and statutory duties.Step 5: Ongoing Maintenance
Quarterly register reviews, annual filing reminders, and periodic compliance checks.
How Azali Can Support Jua Kali Businesses
As Kenya builds out softer pathways to confirm artisan legitimacy and integrate informal players, secretarial support becomes a cornerstone in enabling inclusive economic development.
Azali Certified Public Secretaries LLP offers tailored services that empower informal operators to transition smoothly:
Rapid Registration & e-Filing: Azali helps streamline the online registration process through Kenya’s e‑Citizen and Business Registration Service (BRS) platforms.
Template-Based Contracts: Clear agreements for services, staffing, and supplier interactions.
Governance & Record-Keeping: Statutory registers, beneficial ownership logs, and digital backup.
Compliance Reviews: Labour law checklist, rest days, leave, minimum wages, and licensing status.
Training Workshops: Short, accessible sessions designed for artisan and SME contexts.
When SMEs Should Seek Support
When they begin hiring employees (even a few), PAYE compliance becomes mandatory under the Employment Act.
As soon as they sign formal agreements, to secure payment, define deliverables, and avoid clashes.
Before applying for loans or tender contracts, which often require formal documentation.
When entering supply chains or collaborative projects that require featured compliance or governance credentials.
Final Thoughts
The Jua Kali and broader SME sector remain vital to Kenya’s economy, yet their informality puts them at risk of exclusion. Company secretaries can serve as enablers, offering accessible, affordable, and practical guidance that empowers operators to step into compliance, grow their businesses, and protect their stakeholders.
By delivering secretarial services attuned to the realities of artisans, traders, and small firms, Azali helps build the backbone of Kenya’s formal economic future.
Contact Azali today to explore how we can support your business in formalizing operations, safeguarding employees, and preparing for broader growth opportunities.
📧 admin@azali.co.ke • ☎ +254 (0) 707 456 140