An Evaluation of the Impact of Food Vendors on Household Poverty Reduction

Abstract

The contribution that food vending can make to the reduction of household poverty in the Meru District has been estimated against the generation of income by vendor households, creation of employment opportunities in the sector, and levels of asset ownership among vendors. The mixed-method approach supplemented data from surveys, interviews, and observations of 204 food vendors, the majority being females, this show how important this sector has been as a source of livelihood for women. Results also indicate that food vending is a major source of self employment, inasmuch as 81 percent of vendors are self-employed. Additionally, an increase in incomes among vendors varies between 3,000 and 15,000 Tsh per day; this contributes to raising the level of household economic stability and increased ownership of communication devices, means of transportation, and basic home electronic appliances. Yet, despite all these advantages, food vendors face repressive regulatory frameworks, a lack of access to finance, a high level of taxation, minimal business skills, and severe competition. This study identifies that this is what keeps the sector from making an effective contribution to poverty reduction. The recommendations from these findings are related to policy reforms for simpler licensing and taxation, increase in microcredit availability, skill enhancement training programs, and formation of cooperative structures. These interventions improve the sustainability and impacts of food vending in ways that enable it to contribute to poverty reduction in fulfillment of national development aspirations and SDGs. The research enriches the literature on informal economies and offers practical insight into ways policymakers could support the informal sector's role in poverty alleviation.