Country Study Series ... 56878 Report on Round 3 of the Kenya Survey Department of Economics, Gothenburg University, Sweden Department of Economics, University of Nairobi, Kenya May 1996 This document is not for citation unless authorized by the RPED Program Manager The views and interpretations expressed in this study are solely those of the authors. They do not necessarily represent the views of the World Bank or its member countries and should not be attributed to the World Bank or its affiliated organizations. : .. ... Regional Programme on Enterprise Development: Report on Round 3 of the Kenya Survey Department of Economics Goteborg University 411 80 Goteborg Sweden Department of Economics University of Nairobi POBox 30197 Nairobi Kenya May 1996 r Table of Contents o. INTRODUCTION 1 . 0.1 0.2 The Macroeconomic Environment 1995 Policy Reforms 2 5 1. ENTREPRENEURSHIP AND TRAINING 8 2. STRUCTURE AND PERFORMANCE OF MANUFACTURING FIRMS 14 2.1 Development of Manufacturing Firms During 1994 14 2.2 Revenue Costs 14 3· COMPETITION 45 4. TECHNOLOGY ACQUISITION S6 5. THE LABOUR FORCE 66 6. EMPLOYEE TRAINING 94 7. INVESTMENTS AND FINANCIAL MARKETS 109 7.1 Acquisition of Capital Stock 109 7.2 Access to Credit. 110 7.3 Borrowing from Formal Institutions 111 7.4 Informal Credit 112 7.5 Financial Assets Acquired 113 8. INFRASTRUCTURE 161 9. REGULATIONS 179 10. ADJUSTMENT 217 11. INVESTOR CONFIDENCE 259 12. BUSINESS SUPPORT SERVICES 282 13 · CONCLUDING REMARKS 288 Preface This is the first report on the third and final round of the RPED survey of Kenyan manufacturing firms. The survey was undertaken by the Economics I Departments of Goteborg and Nairobi Universities in collaboration with the Kenya Association of ~~ufacturers. Interviews were done by a team consisting of Peter Kimuyu, Gerrishon Ikiara, Hutsembi Hanundu, Wafula Hasai, Hohamud Jama, Njuguna Ndung'u, E.H. Kabuu, Simon Ihiga, Anders Isaksson, Anders Gerdin, Jorgen Levin, Lennart Hjalmarsson, Clas Wihlborg, and myself. Data entry was done by Domisiano Hwabu Kirii and Geoffrey Opicha Okallo. Data analysis was done by Renato Aguilar, and I wrote up the text for this report, incorporating suggestions from the other participants. suggestions for writing improvements were made by Rick Wicks. We would like to express our gratitude to the firms interviewed for their collaboration and patience. Goteborg, 14th of Hay, 1996 Arne Bigsten ii O. INTRODUCTION The World Bank is undertaking a large cross-country study of enterprise development in Africa, with Kenya as one of the participating countries. The three rounds of interviews in Kenya were done in 1993, 1994 and 1995. This report presents the basic results obtained in the third round of interviews done in August-September 1995, and is to be followed by a comprehensive report covering all three waves. This survey traces the firms that were in the previous rounds, with 31 replacements for those that had ceased to exist or declined to participate further. Altogether there were 219 firms in the sample. The towns covered were thus again Nairobi, Mambasa, Nakuru, and Eldoret. The survey covers four sub-sectors of manufacturing, namely food processing, wood working, textiles and garments, and metal working, which represents 72\ of total manufacturing in Kenya. Therefore it gives a reasonably representative picture of manufacturing in Kenya, although it focuses only on sectors that appear early in the process of industrialization. The sample and weights are chosen in such a way that the sample is representative of the four sub-sectors, but it is not representative by town; sample size is too small to allow us to be representative on a regional basis. According to official statistics there has been an explosion in informal-sector manufacturing- employment in the last few years, but this appearance may be due to improved statistical coverage. Given the uncertainties involved, we have chosen to let the relative weight of the informal sector remain unchanged over the three years. Formal firms represent about two-thirds of employment, and informal firms about a third, and are weighted accordingly. We give weighted results in this report, except when we have too few observat~ons, in which case we give sample results. When the latter is done, we note in the table that sample data is being used. otherwise we use labour weights, which means that we give a representative picture of activity in the sector. Throughout the report we present results first by sub-sector, and then by firm size. Chapters 1-12 show the results of the corresponding section of the questionnaire. Chapter 13 summarizes and draws conclusions. 1 0.1 ~be MacroecoDemic EDviroa.eDt In last year's reports we noted that "Kenya entered a serious economic crisis after the withdrawal of donor support in 1991. Political turmoil and ethnic clashes before and after the elections in December 1992 also had serious economic repercussions. Uncertainty about government policies, as well as a shortage of foreign exchange, hampered economic growth. The 1992 and 1993 years were thus marred by stagnation, GDP growing by just 0.5\ and 0.1\, respectively. The manufacturing sector grew by 1.2\ and 1.8\, way below its growth trend. Manufacturing capital formation picked up somewhat in 1993, but was still about 30\ below the level reached in 1990." We went on to note that 1993 was thus one of the worst years in post-independence Kenya. In the middle of 1994, when the interviews in Round 2 were made, we believed that there were some signs of a fragile recovery, threatened by political instability. We argued that the economy might improve if the government could stay on course in terms of policy reform and macroeconomic control. As it turned out, GDP grew by 3\ in 1994, which was a considerable recovery from the years before. 1 However, growth was mainly concentrated to the agricultural and service sectors, while manufacturing growth was only 1.9\, and the share of manufacturing in GDP has remained virtually constant over the last ten years. Thus, in spite of the declared aim of creating an environment conducive to manufacturing growth, the results were still poor. Various manufacturing industries had very different growth rates, however (Table 0:1). Parts of the food-processing industry benefited a lot from the rapid expansion of agriculture, but also because of temporarily high demand from refugees in Rwanda, Burundi, and Somalia. The textile and garment industry, on the other hand, was seriously undermined by cheap imp~rts. Output of textiles and clothing fell by 26\ and 37\. respectively. To some extent the increased competitive pressure was due to liberalization of the economy and tariff reform. However, the situation was aggravated by strong appreCiation of the shilling during the first half of the year, and also by extensive inflow of goods that did not pay tariffs and J Levin, J., N. Ndung'u (1996). lteDya: Be.itaDt but Back OD ~rack, Macroeconomic Studies no 1996:7, SIDA, Stockholm 2 duties. Producers specifical·iy point to "transit cargo" that landed in Mombasa' and was redirected into the Kenyan market, and also to the fact that there was a rapid increase in the inflow of secondhand clothes. Another problem is that an increasing fraction of exported textiles are not meeting the local-content conditions, which negatively affects Kenya's access to the General System of Preferences. It has also been argued that Kenyan quotas negotiated under the Multi-Fiber Agreement have been covered by reexports. The wood and furniture industries had a more stable situation, with growth of 3.1\ and 2.0\, respectively. The various metal-processing industries showed growth rates between O.B\ and 11.3\. In spite of extensive complaints from the transport equipment industry, it actually recorded growth of 5.6\; it seems that there are adjustments underway, shifting out of shrinking markets, into expanding ones. Thus, in 1994 manufacturing showed only weak signs of recovery. The poor growth of manufacturing partly reflects movement of producers into less risky activities such as retail trade and wholesale. A major observation from our own interviews was that the entrepreneurs were in general very uncertain about the direction of policies and politics in Kenya. It is therefore natural that they take a wait-and-see attitude to investments, and try to diversify into less risky activities. The government has changed policies for the better according to most of the producers we interviewed, but there were major complaints about the administration of the new policies: Corruption and rent seeking activities seemed to be worse than ever. Of course, the general feeling of mistrust holds back private investment. During the second half of the 1980s investment was close to 15\ of GOP, but then it started to decline, reaching its lowest level in 1992, 9.7\,2 In 1993 it increased to 10.4\, while in 1994 it again declined slightly to 10.2\, Net long-term private flows, including foreign investments, were also negative for the third.year in a row, indicating that foreign investors have not regained confidence in the Kenyan government. Thus the structural adjustment experience of Kenya is similar to that of many other African countries, in that private investments are very slow to respond to changes in the structure of incentives. However, there was some recovery of public investments to 10.4\ of GOP in 1994 from a low of 7.8\ in 1992" There was an increase in 2 Kenya (1995), Economic Survey 1995, Nairobi. 3 infrastructure investment during the year, mainly in energy and roads, but many years of high investments will be required to repair the run-down system. Table 0.1 : Annual cbanges in manufacturing output by indust~· (%) 1986-90 1991 1992 1993 1994 , Meat and Dairy Products 11.1 -10.6 -24.9 1.9 -9.2 Canned Vegetables,. Fish,. Oils,. and Fats 10.2 13.2 -6.7 13.4 -28.5 Grain Mills Products -1.9 0.1 -4.3 -9.2 32.3 Bakery Products 4.4 5.1 4.1 3.2 53.8 Sugar and Confectionery 3.2 3.7 -7.1 1.3 -20.9 Miscellaneous Foods 8.6 0.3 4.1 -7. ) 2.7 Beverage 7.7 -3.3 16.2 -0.7 -7.5 Tobacco 3.5 -2.6 11.1 1.0 0.7 Textiles 5.5 -4.1 0.0 15.3 -25.8 Clothing -0.5 -6.8 -0.9 -8.8 -37.1 Leather and Footwear 5.3 2.3 -4.3 -9.5 10.1 Wood and Cork Products 1.2 4.1 1.2 -0.4 3.1 Furniture and Fixtures 0.3 -3.9 -33.9 6.0 2.0 Paper and Paper Products 7.4 5.2 20.1 -30.0 -13.8 Printing and Publishing 3.7 1.0 1.3 0.0 3.3 Basic Industrial Chemicals 6.7 10.6 0.1 4.5 -12.9 Petroleum and Other Cbemicals 16.0 11.6 -5.7 -2.6 -3.3 Rubber Products 6.1 -1.1 95.5 -1.3 -1.4 Plastic Products 2.6 20.6 18.0 10.3 1.5 Clay and Glass Products 6.7 -2.0 59.9 108.4 47.6 Non-Metallic Mineral Products 5.9 4.4 17.9 -2.0 5.1 Metallic Products ]7.4 14.7 -9.5 0.2 11.3 Non-Electrical Machinery -3.1 -2.7 -5.6 -0.7 6.0 Electrical Equipment 4.2 36.5 -3.2 -10.7 0.8 Transport Equipment 3.4 -1.7 -8.8 -10.4 5.6 Miscellaneous Manufactures 14.0 8.6 0.4 0.0 0.0 TOTAL MANUFACTURING 6.2 2.8 1.3 1.8 1.9 ~: Economic Survey, various issues Economic recovery continued in 1995. There are no official figures as yet, but the governmen~ has estimated growth around 5\. The Economist Intelligence 3 Unit came up with a somewhat lower figure, but still respectable 4.2\_ The EIU argued that manufacturing faced slack demand, and that overall growth would thus not possibly reach 5\. Their estimate of manufacturing growth for 1995 is only 2.8\, again less than the overall growth. The EIU predicts that 3 Economist Intelligence Unit (1995), Kenya: Country .eport, 4th quarter 1995, London 4 the country will see increasing slippages in terms of policy, particularly of-- public expenditures in the run-up to the 1997 elections (like before the previous ones in 1992), and that this will cause the rate of growth to gradually fall towards 2\ in 1997. Merchandise exports have picked up, and there has been some diversification, but they are still dominated by coffee, tea, and horticulture. Manufacturing exports have increased, particularly to Uganda and Tanzania. Macroeconomic indicators looked reasonably good in early 1996, and there were government pronouncements indicating that the reform process will continue. The public-sector deficit continues to fall, inflation is less than 10\, and the shilling has been stable since its drop in May 1995. But again political volatility put a break on possible improvements. Still, on the 26th of April, 1996, the IMF approved release to Kenya of US$200 million under an ESAF. This was part of the money frozen earlier by the IMF, and its release was dependent on the government· s implementation of further economic reforms and proper financial management. The government will draw an initial amount of US$ 36.65 million and five subsequent installments of similar amounts semi-annually, SUbject to continued implementation of economic reform measures and the achievement of macroeconomic targets for 1996-98 based on the recently launched Policy Framework paper (PFP). 0.2 1995 Policy Reforas In the budget announced in June 1995 the government reported considerable achievement in terms of improved fiscal discipline: The budget deficit was reduced from 6.4\ the previous fiscal year to only 0.7\ in 1994/95, and the Minister of Finance proclaimed that it would be eliminated by the end of the current budget year. The document also outlined the road ahead in terms of structur~l reforms. We will briefly review here those that are relevant for our concern, the manufacturing sector. With regard to customs, several changes were introduced to tighten up handling of goods and to avoid goods entering the market without payment of customary duty and VAT. The Minister of Finance was given power to increase or decrease import and export duty by up to 30\ whenever necessary. For some goods, however, including maize, wheat, sugar, milk, rice, and used clothes, and the 5 rate of duty could be increased by up to 75\ of the normal rate to counteract dumping or other unfair competition from abroad. In addition, duty exemption have all been removed on imports of foods, used clothes, etc., donated to approved non-profit organizations or institutions, in the belief that these types of inflows also represent unfair competition against local producers. Generally, tariff rates have been reduced somewhat, including on several types of capital equipment, and the number of tariff bands is also less than before. A number of tariff exemptions still remain available upon application to the Permanent Secretary of the Treasury. The major ones from our perspective are for capital goods aimed at foreign-exchange savings and earnings, and capital goods for investment in small scale industries. The government also announced the privatization of reconciliation and export- inspection work required under the EPPO duty/VAT remission programme for imported inputs used in production of exports, for supply to the armed forces, in aid-funded projects, as essential goods with duty/VAT remission, and under the manufacturing-under-bond programme. The Commissioner of VAT has been given extended powers, for example to collect from persons or firms owing money. Firms selling goods worth at least 2 million shillings are now taxable under VAT regulations, which have been changed so that there will only be remission of VAT on capital goods worth at least 5 million shillings per investment, and if such investment is aimed at foreign-exchange savings or earnings. Various income-tax reforms were introduced, of which those important for firms are, for example, that importers of capital goods worth more than U8$5 million are now allowed to credit import duty paid against income tax payable, if the importer can prove that the project will generate net economic benefits for Kenya. MUB enterprises will be allowed an investment deduction for capital expenditure. incurred on construction of buildings and on purchase and installation of machinery, including machinery investments as far back as January 1988. A drought levy was introduced in 1994, but was canceled in 1995; the corporation tax therefore reverted to 35\. The Kenya Revenue Authority has been established to administer and enforce laws concerning assessment, collection, and accounting of all government revenues, with hope that the 6 .' system will become more efficient. \ 7 1· ENTREPRENEURSHIP AND TRAINING The report from Round 1 provided extensive information about the background and characteristics of the entrepreneurs. The original sample has not been interviewed about their background again, but we had 30 new entrepreneurs in our sample this time, whose backgrounds were very similar to those of the original set: the father of 62\ had been in business as producers or traders, while another 10\ had been farmers. They were generally well educated, only 14\ had gone no further than primary education. All of the latter had set up micro firms with less than 5 employees. Of the 30 new entrepreneurs, only B had received training at some point in time, two from foreign firms, two from local firms, one from government, one from a donor, two from other providers of training and none from NGOs. Half of the new entrepreneurs had some experience in the same type of business before they started their firms; 70\ had established the new business themselves, and 14\ inherited the business. The full sample were asked questions about any training received during the last year, and about entry into and exit from other businesses. Of the total of 176 entrepreneurs in the sample, 33 had received some training during the year, whiCh is an increase by over a third since the year before: NGOs and other donors had given training to 11; 3 had received training organized by the government; 2 had been trained by local firms and 2 by foreign firms; and 15 had attended other courses. The major change compared to earlier years was the size of NGO training activity. While there were no cases of overseas training last year, there were now a few. overall there thus seems to be a certain increase in training activity. About half the training was in management, and a quarter was technical. NGOs and other donors had given training to 11. The length of the courses varied from one day to three months. The increased number of entrepreneurs attending courses was partially due to their desire ~o acquire information or skills which could help them to cope with challenges arising from the adjustment process. NGOs and private training firms were also more aggressive in popularising new training programmes, such as TQM, ISO 9000, etc. Of our entrepreneurs, 27 had started new businesses during the last year (Tables 1: 1a-b), and 12 had acquired new businesses (Tables 1: 2a-b). The startups occurred in all sectors and size categories, especially in the 8 smallest category, which confirms our earlier observation that small (often·' informal) firms tend to expand via diversification. No firms with less than 20 employees acquired any other firm, however; take-overs were wholly done by larger firms. Of the new firms, more than half were in other lines of business, and again especially so for the smallest category, where 85% were in other lines of business (Tables 1:3a-b). Some entrepreneurs were diversifying out of manufacturing into trade, an attempt to spread risks. There were only 11 firms that exited other businesses (Table 1:4a-b), which were sold as often as closed · . 9 Table 1:1a Sample Results ------------------------------------------------- Sector: Food IWOOd IT~~:-IMetal ALL -----------------+-----+-----+-----+-----+----- Started other business this year: --------+-------- Yes N 7 9 6 5 27 [. --------+-----+-----+-----+-----+----- , I 18.41 18.01 16.71 10.21 15.6 --------+--------+-----+-----+-----+-----+----- No N 1 311 411 301 441 146 --------+-----+-----+-----+-----+----- , I 81.61 82.01 83.31 89.S/ 84.4 --------+--------+-----+-----+-----+-----+----- ALL N I 38/ 501 361 491 173 --------+-----+-----+-----+-----+----- , 1100.01100.01100.01100.01100.0 Table 1:1b Sample Results Employment intervals ~o- /2;5- 17~0~ 1501 + ALL 1 - 51 -----------------+-----+-----+-----+-----+-----+----- Started other business this year: --------+-------- 11 Yes N 2 8 5 1 27 --------+-----+-----+-----+-----+-----+----- % / 22.91 4.71 17.SI 16.11 16.71 15.6 --------+--------+-----+-----+-----+-----+-----+----- N9 N I 371 411 371 261 Sl 146 --------+-----+-----+-----+-----+-----+----- % 1 77.11 95.31 82.21 83.91 83.31 84.4 --------+--------+-----+-----+-----+-----+-----+----- ALL N 1 481 431 4s1 311 61 173 --------+-----+-----+-----+-----+-----+----- % 1100.01100.01100.01100.01100.01100.0 10 Sample Results .' Table 1:2a ------------------------------------------------- Sector: Food IWOOd IT~~:-IMetal ALL -----------------+-----+-----+-----+-----+----- Acquired other business this year: --------+-------- Yes N 3 3 2 4 12 --------+-----+-----+-----+-----+----- \ 1 7.91 6.01 5.61 B.2/ 6.9 --------+--------+-----+-----+-----+-----+----- No N I 351 471 34/ 451 161 --------+-----+-----+-----+-----+----- \ I 92.11 94.01 94.4\ 91.BI 93.1 --------+--------+-----+-----+-----+-----+----- ALL N 1 3BI 50\ 36/ 491 173 --------+-----+-----+-----+-----+----- \ 1100.01100.01100.01100.01100.0 Table 1:2b sample Results Employment intervals 1 - 51 ~o- /2;5- 17~o~ 1501 + ALL -----------------+-----+-----+-----+-----+-----+----- Acquired other business this year: --------+-------- Yes N 6 5 1 12 --------+-----+-----+-----+-----+-----+----- \ 1./ ·113.3116.1116.71 6.9 --------+--------+-----+-----+-----+-----+-----+----- No N I 4BI 431 391 261 51 161 --------+-----+-----+-----+-----+-----+----- \ 1100.01100.0\ 86.71 83.91 B3.31 93.1 --------+--------+-----+-----+-----+-----+-----+----- ALL N I 481 431 451 311 6\ 173 --------+-----+-----+-----+-----+-----+----- \ 1100.01100.01100.0/100.01100.01100.0 11 Table 1:3a Sample Results ------------------------------------------------- Sector: Food lwood IT~~!-IMetal ALL -----------------+-----+-----+-----+-----+----- , Same line as this firm --------+-------- Yes N 5 4 3 4 16 --------+-----+-----+-----+-----+----- , I 50.01 40.01 33.31 50.01 43.2 --------+--------+-----+-----+-----+-----+----- No N I 51 61 61 41 21 --------+-----+-----+-----+-----+----- , I 50.01 60.01 66.71 50.01 56.8 --------+--------+-----+-----+-----+-----+----- ALL N 1 101 101 91 81 37 --------+-----+-----+-----+-----+----- , 1100.01100.01100.01100.01100.0 Table 1:3b Sample Results Employment intervals S\ ~o- \2;5- 17~0~ 1501 + ALL 1 - -----------------+-----+-----+-----+-----+-----+----- Same line as this fi.rm --------+-------- Yes N 2 1 6 5 2 16 --------+-----+-----+-----+-----+-----+----- , 1 15.41 33.31 60.01 5s.61100.01 43.2 --------+--------+-----+-----+-----+-----+-----+----- No N I 111 21 41 41 ·1 21 --------+-----+-----+-----+-----+-----+----- , I 84.61 66.71 40.01 44.41 .1 56.8 --------+--------+-----+-----+-----+-----+-----+----- ALL N I 131 31 101 91 21 37 --------+-----+-----+-----+-----+-----+----- \ 1100.01100.01100.01100.01100.01100.0 12 Table 1:4a Sample Results ------------------------------------------------- Sector: Food IWOOd IT~~:-IMetal ALL -----------------+-----+-----+-----+-----+----- Exited any other business this year: --------+-------- Yes N 3 3 3 2 II --------+-----+-----+-----+-----+----- % I 7.91 6.01 S.31 4.01 6.3 --------+--------+-----+-----+-----+-----+----- No N I 351 471 331 481 163 --------+-----+-----+-----+-----+----- , I 92.11 94.01 91.71 96.01 93.7 --------+--------+-----+-----+-----+-----+----- ALL N 1 381 501 361 501 174 --------+-----+-----+-----+-----+----- % 1100.01100.01100.01100.0/100.0 Table 1:4b sample Results Employment intervals 2 1 - 51 ~o- 1 ;5- 17;0~ ALL 1501 + -----------------+-----+-----+-----+-----+-----+----- Exited any other business this year: --------+-------- Yes N 1 2 5 2 1 1.1 --------+-----+-----+-----+-----+-----+----- , I 2.11 4.7/ n.ll 6.31 16.71 6.3 --------+--------+-----+-----+-----+-----+-----+----- No N 1 471 411 401 301 51 163 --------+-----+-----+-----+-----+-----+----- % I 97.91 95.31 88.9/ 93.81 83.3/ 93.7 --------+--------+-----+-----+-----+-----+-----+----- ALL N 1 481 43 1 45/ 321 61 174 --------+-----+-----+-----+-----+-----+----- , 1100.01100.01100.01100.01100.01100.0 . 13 2· STRUCTURE AND PERFORMANCE OF MANUFACTURING FIRMS 2;1 Development of Manufacturing Firms during 1994 The introduction outlined macroeconomic evolution in 1994 (our reference period) and 1995, as well as policy changes during 1995. We noted that the manufacturing sector grew by only 1.9% in 1994. Our firms showed an average increase in real sales (deflated by the GDP deflator for manufacturing as a whole) of 7.5\. It is natural that our figure is somewhat higher than the aggregate, since we have sample selection bias: We only cover surviving firms. There was a large spread in performance, though, from sales increases by 30% for wood, to 14\ for metal, 5\ for food, and a decline of 12\ for textiles and garments. We note again that the textiles and garments sector is in decline due to increased competition following the opening up of the economy and the inflow of second-hand clothing. There was virtually .no change in the average level of employment in any of the sectors or size classes, however. The majority of firms (S7\)considered 1994 an average period. However, when asked about the profit rate, more firms reported lower profits than higher profits, compared to the year before (Tables 2:1a-b). It was particularly the firms in food and textiles that reported lower profit rates. Smaller firms seemed to do better than larger ones, possibly due to the fact that their products did not face as much competition from imported products as did the larger firms. The firms in general reported higher sales (Tables 2:2a-b, as well as higher quantity of goods sold (Tables 2:3a-b). Again we see that food and textiles did worse than the others. Quite a number of firms (24\) reported that they had added new products during the year (Tables 2:4a-b). There was little change in this regard in the textile sector, which may suggest that there was only limited response there to the crisis, or that the response was more dramatic than mere addition of new products. Many firms actually stopped producing. 2.2 aevenue and cost. Tables 2:Sa-b provide information about inventories and costs. Firms hold high and costly raw material inventory levels (see last years discussion). It is also notable how small the wage bill is relative to raw material costs (less 14 than 10\), although the smalier firms are less raw material intensive. As much·· as 39\ of inputs is imported from abroad, and as expected, it is the larger firms that are most dependent on imported inputs. The largest firms import 70% of their inputs. The smallest firms do buy some imported inputs (about 15%), but they do this indirectly, through domestic suppliers; mostly they use domestically produced inputs. Tables 2:6a-b show the firms' indirect costs. Transportation is a major cost item: Part of the reported costs for liquid fuels also goes to transportation, and when this is added to the cost of transportation services bought in the market directly, we arrive at a high figure. Transport is difficult and costly in Kenya, and is a major obstacle to business. Electricity is another major cost item. The provision of cheaper and more reliable infrastructure services is still a top priority for the firms. Promotion and advertising expenses are extremely low: It is mainly the food sector that spends some money on this followed by metal producers. Marketing is largely confined to the larger firms. The small ones do not seem to market their products very actively, at least not in ways that cost money. This is surprising, considering the intensity of the competition that they face. Profits in Kenyan firms are given out as dividends only to a very small degree (Tables 2:7a-b). The major taxation burden is the VAT. There is a good deal of shift work in Kenyan industry (Tables 2:8a-b). Larger firms run multiple shifts, and among the largest, three shifts is a common mode of operation. There were hardly any enterprises with less than 20 employees operating in two shifts (0.7\). On the other hand, 15.2\ of the largest firms were on a single shift, while 29.4\ and 55.3\ of them were operating on two or three shifts, respectively. Shift work is concentrated in textiles and metal working due to the character of the production process. One would not have expected much shift work, given the low levels of capacity utilization in Kenyan industry (Tables 2:9a-b). Firms reported that they could increase production by 74\ without new investments (a slight reduction from 85\ last year). Not surprisingly, it is the textile sector that reports the lowest capacity utilization. This sector could almost triple output without new investment. Thus, on average there is no need for shift work, but the situation may vary a lot between firms in the sector. There are also some 15 problems in measuring capacity utilization, particularly in the informal firms, which means that we do not get a very precise estimate. Still, low levels of capacity utilization seem to have characterized Kenyan manufacturing for decades. We asked the firms about the severity of various obstacles to capacity utilization (Tables 2:10a-l). To an overwhelming majority, the most severe obstacle is lack of demand, while complaints about the lack of working capital have fallen dramatically since the previous round of interviews. It is still regarded as a major problem by many, but only 21\ rated it a severe obstacle, compared to 56\ who reported lack of demand as a severe obstacle. This may be an indication that financial reforms are having some impact. The vast majority do not report problems in access to inputs, imported as well as domestic, in the lack of skilled labour, or equipment breakdowns. So far, Kenyan manufacturing firms have not been able to make a breakthrough in the export markets: Exports are still quite limited. Table 2:11b shows that exporting was quite rare among small firms, though the situation was different for larger ones: 58.1\ of the firms with 76-500 employees, and 100\ of those with over 500 employees, exported part of their production. Still, despite the fact that the majority of the firms complain about the lack of demand, many have not yet learned to look outwards, or they remain incapable of breaking into the international markets. 16 Table 2:1a ------------------------------------------------- Sector: Food IWOOd IT~~:-IMetal ALL -----------------+-----+-----+-----+-----+----- Profit I rate --------+-------- 0.1 # I' 0.1 0.1 --------+--------+-----+-----+-----+-----+----- Higher \' I 18.6\ 52.51 20.01 23.9\ 26.0 --------+--------+-----+-----+-----+-----+----- Lower I' 1 77.5\ 37.01 62.01 12.41 44.7 --------+--------+-----+-----+-----+-----+----- Same I' 3.7\ 10.31 18.01 61.2\ 28.4 --------+--------+-----+-----+-----+-----+----- @ I' 1·10.3\·12.310.9 --------+--------+-----+-----+-----+-----+----- ALL I' 1100.01100.01100.01100.01100.0 Table 2:1b Employment intervals ~o- 1 ;5- 17:0~ 1501 + ALL 2 1 - 51 -----------------+-----+-----+-----+-----+-----+----- Profit 1 rate --------+-------- # I' 0.5 0.1 --------+--------+-----+-----+-----+-----+-----+----- Higher I' I 47.01 57.51 14.91 35.71 .1 26.0 --------+--------+-----+-----+-----+-----+-----+----- Lower I' 1 41.41 33.91 75.51 38.31 43.71 44.7 --------+--------+-----+-----+-----+-----+-----+----- Same I' I 11.61 1.61 9.S\ 25.91 56.31 28.4 --------+--------+-----+-----+-----+-----+-----+----- @ I' \·1 6.41 .\ .\ .1 0.9 --------+--------+-----+-----+-----+-----+-----+----- ALL I' 1100.01100.01100.01100.01100.01 100 · 0 17 Table 2:2a ------------------------------------------------- Sector: Food IWOOd IT~~:-IMetal ALL -----------------+-----+-----+-----+-----+----- Value of total sales --------+-------- 26.0 67.1 59.1 94.1 63.8 Higher I' --------+--------+-----+-----+-----+-----+----- Lower I' I 72.31 22.01 32.21 3.01 31.3 --------+--------+-----+-----+-----+-----+----- Same I' 1 0.31 10.61 8.61 0.5 I 3.7 --------+--------+-----+-----+-----+-----+----- @ I' I 1.31 0.31 .1 2.31 1.2 --------+--------+-----+-----+-----+-----+----- ALL I' 1100.01100.01100.01100.01100.0 Table 2:2b Employment intervals ~o- 1 ;5- 17;0~ 1501 + ALL 2 1 - 51 -----------------+-----+-----+-----+-----+-----+----- Value of total sales --------+-------- 53.9 66.5 30.0 74.8 73.9 63.8 Higher I' --------+--------+-----+-----+-----+-----+-----+----- Lower I' I 39.11 16.21 64.61 22.41 26.11 31.3 --------+--------+-----+-----+-----+-----+-----+----- Same I' I 5.31 10.51 5.41 2.81 .1 3.7 --------+--------+-----+-----+-----+-----+-----+----- @ I' I 1.61 6.71 .1 .1 ·1 1.2 --------+--------+-----+-----+-----+-----+-----+----- ALL I' 1100.01 1 00.01100.01 1 00.01 1 00.01100.0 18 Table 2:3a ------------------------------------------------- Sector: Food IWOOd IT~~!-IMetal ALL -----------------+-----+-----+-----+-----+----- Quantity of goods sold --------+-------- 52.4 75.4 45.4 89.6 68.9 Higher I' --------+--------+-----+-----+-----+-----+----- Lower I' I 44.sl 13.SI 32.41 6.21 23.2 --------+--------+-----+-----+-----+-----+----- Same I' I 2.61 10.51 22.21 1.91 6.9 --------+--------+-----+-----+-----+-----+----- @ I' I 0.11 0.31 .1 2.31 1.0 --------+--------+-----+-----+-----+-----+----- ALL I' 1100.01100.01100.01100.01100.0 Table 2:3b Employment intervals 17~0~ 2 1 - 51 !o- 1 ;5- 1501 + ALL -----------------+-----+-----+-----+-----+-----+----- Quantity of goods sold --------+-------- 59.8 81.4 22.3 54.6 96.2 68.9 Higher I' --------+--------+-----+-----+-----+-----+-----+----- Lower I' I 29.21 10.11 6s.11 29.41 3.81 23.2 --------+--------+-----+-----+-----+-----+-----+----- Same I" I 11.11 1. 81 9.61 16.0 I . I 6.9 --------+--------+-----+-----+-----+-----+-----+----- @ I' 1 · 1 6.71 ·1 ·1 ·1 1.0 --------+--------+-----+-----+-----+-----+-----+----- ALL I' 1100.01100.01100.01 1 00.01100.01100.0 19 Table 2:4a ------------------------------------------------- Sector: IT~~:-IMetal ALL Food jwood -----------------+-----+-----+-----+-----+----- Added/e- liminat- ed/chan- ged firms products --------+-------- No change I' 33.9 6S.4 S3.2 --------+--------+-----+-----+-----+-----+----- 71.2 62.S Added I' I 65.31 26.31 S.11 2S.21 34.2 --------+--------+-----+-----+-----+-----+----- ~!~ina-I' I 0.61 0.61 0.91 0.3/ 0.6 --------+--------+-----+-----+-----+-----+----- Changed I' 1 0.21 4.71 7.Sl 0.31 2.5 --------+--------+-----+-----+-----+-----+----- ALL I' 1100.01100.01100.01100.01100.0 Table 2:4b Employment intervals ~o- 1 ;5- 17~0~ 1501 + ALL 2 1 - 51 -----------------+-----+-----+-----+-----+-----+----- Added/e- liminat- ed/chan- ged firms products --------+-------- No change I' 70.6 74.5 27.B 73.6 --------+--------+-----+-----+-----+-----+-----+----- 60.S 62.S Added I' I 22.1/ 24.11 6s.71 2s.sl 36.71 34.2 ~-------+--------+-----+-----+-----+-----+-----+----- ~!!mina-I' 0.11 1.31 2.21 0.51 .1 0.6 --------+--------+-----+-----+-----+-----+-----+----- Changed I' I 7.21 ·1 1.31 ·1 2.51 2.5 --------+--------+-----+-----+-----+-----+-----+----- ALL I' 1100.01100.01100.01100.01100.01100.0 20 Table 2:5& --------------------------------------------------------------------- Sector: Food Wood \ Textile I Metal ALL -----------------+---------+---------+---------+---------+--------- Value N 50\ 561 501 471 203 invent. raw --------+---------+---------+---------+---------+--------- Ksh materia- ls at beginni- ng 12517252 1678765.1 14031484 48020220 22543541 --------+--------+---------+---------+---------+---------+--------- Value N I 501 561 501 491 205 invent. raw --------+---------+---------+---------+---------+--------- Ksh materia- ls at the end 9318151.2 2117230.6 17621477 56171866 26839236 --------+--------+---------+---------+---------+---------+--------- Value N \ 461 54\ 501 481 198 work in --------+---------+---------+---------+---------+--------- progress Ksh at beginni- ng 146757.1 335665.9 17148097 20796537 11274393 --------+--------+---------+---------+---------+---------+--------- Value N I 46\ 541 501 46\ 196 work in --------+---------+---------+---------+---------+--------- progress Ksh invento- ry at end 159027.1 397184.9 12307000 27574827 12649137 --------+--------+---------+---------+---------+---------+--------- Value N 1 SOl 55\ 501 49\ 204 finished good --------+---------+---------+---------+---------+--------- Ksh invent. at beginni- ng 1581874.8 2107668.8 10129646 36114412 15796581 (CON;INUED) 21 --------------------------,-...:_---------------------- .... ----------------- Sector: Food Wood 1 Textile 1 Metal ALL -----------------+---------+---------+---------+---------+--------- Value N 491 551 511 491 204 finished good --------+---------+---------+---------+---------+--------- Ksh invent. at the end 2991440.0 1956675.2 10664925 49402233 21072814 --------+--------+---------+---------+---------+---------+--------- Total N 1 491 551 501 511 205 cost of --------+---------+---------+---------+---------+--------- raw Ksh materia- ls used 105936425 7200827.0 77049096 354562869 175316079 --------+--------+---------+---------+---------+---------+--------- Prop. N I 50 I 571 501 521 209 raw mat. --------+---------+---------+---------+---------+--------- sourced " from own bus. 2.4 16.0 3.0 0.1 4.0 --------+--------+---------+---------+---------+---------+--------- Wage N 1 501 531 471 481 198 bill --------+---------+---------+---------+---------+--------- !::~Od: Ksh 17587431.212476811.71 280349361 226853151 16181424 --------+--------+---------+---------+---------+---------+--------- Total N 1 511 561 501 511 208 labor cost --------+---------+---------+---------+---------+--------- Ksh last period: 9849817.9 2902256.9 8660535.9 28323229 15583030 22 Table 2:5b --------------------------------------------------------------------- Employment intervals 1 - 5 1 6 - 20 1 21 - 75 176 - 500 1 501 + -----------------+---------+---------+---------+---------+--------- Value N 1 551 501 511 411 6 invent. --------+---------+---------+---------+---------+--------- raw Ksh materia- ls at beginni- ng 9351.2 293794.8 2155201.3 36054354 47356158 --------+--------+---------+---------+---------+---------+--------- Value N 1 551 501 521 411 7 invent. raw --------+---------+---------+---------+---------+--------- Ksh materia- ls at the end 8336.7 334379.9 1882265.8 32263265 57699319 --------+--------+---------+---------+---------+---------+--------- Value N I 531 481 521 381 7 work in --------+---------+---------+---------+---------+--------- progress Ksh at beginni- ng 4124.4 35842.4 326268.2 3196209.1 28770832 --------+--------+---------+---------+---------+---------+--------- Value N 1 521 481 511 381 7 work in --------+---------+---------+---------+---------+--------- progress Ksh invento- ry at end 5456.2 39479.4 292781.4 3461777.5 32268940 --------+--------+---------+---------+---------+---------+--------- Value N / 521 511 541 401 7 finished --------+---------+---------+---------+---------+--------- good Ksh invent. at beginni- ng 12109.4 89866.8 657766.5 8240763.5 39170724 (CONTINUED) 23 --------------------------------------------------------------------- Employment intervals ------------------------------------------------- 1 - 5 I 6 - 20 I 21 - 75 176 - 500 I 501 + -----------------+---------+---------+---------+---------+--------- Value N 541 511 521 40 I 7 finished --------+---------+---------+---------+---------+--------- 900d Ksh invent. at the end 14124.2 98418.2 644844.6 10839936 52395900 --------+--------+---------+---------+---------+---------+--------- Total N 1 551 sol 521 411 7 cost of --------+---------+---------+---------+---------+--------- raw Ksh materia- ls used 127452.6 1048560.6 16903735 184589460 390314434 --------+--------+---------+---------+---------+---------+--------- Prop. N I 531 521 541 421 8 raw mat. sourced , --------+---------+---------+---------+---------+--------- from own bus. 0.0 5.8 0.2 5.9 5.7 --------+--------+---------+---------+---------+---------+--------- Wage N I 541 511 501 371 6 bill --------+---------+---------+---------+---------+--------- !::~Od: Ksh I 31107.31 138355.411147534.21 159509641 37314016 --------+--------+---------+---------+---------+---------+--------- Total N I 541 541 531 411 6 labor cost --------+---------+---------+---------+---------+--------- Ksh last period: 34017.3 161708.0 1367579.2 18705350 35310736 (CONTINUED) 24 ----------------------------- ALL -----------------+--------- Value N 203 invent. --------+--------- raw Ksh materia- ls at beginni- ng 22543541 --------+--------+--------- Value N 205 invent. raw --------+--------- Rsh materia- ls at the end 26839236 --------+--------+--------- Value N I 198 work in --------+--------- progress Ksh at beginni- ng 11274393 --------+--------+--------- Value N 196 work in --------+--------- progress Rsh invento- ryat end 12649137 --------+--------+--------- Value N I 204 finished good --------+--------- Ksh invent. at beginni- ng 15796581 (CONTINUED) 25 ------~---------------------- ALL -----------------+--------- value N 204 1 finished good --------+--------- Ksh invent. at the end 21072814 --------+--------+--------- Total N -I 205 cost of raw --------+--------- Ksh materia- r ls used 175316079 l· --------+--------+--------- Prop. N I 209 raw mat. --------+--------- sourced % from own bus. 4.0 --------+--------+--------- Wage N I 198 bill --------+--------- last period: Ksh I 16181424 --------+--------+--------- Total N 20S labor cost --------+--------- Ksh last period: 15583030 26 Table 2:6a --------------------------------------------------------------------- Indirect costs Sector: Food Wood \ Textile \ Metal ALL -----------------+---------+---------+---------+---------+--------- (a) N 1 521 541 SOl 52\ 208 Rent --------+---------+---------+---------+---------+--------- , 1 198662.61 315547.51 350860.31 148599.81 228342.0 --------+--------+---------+---------+---------+---------+--------- (b) N 1 501 561 501 50\ 206 Electri- --------+---------+---------+---------+---------+--------- city , 12011480.51 204174.31 1127332212471368.813959272.1 --------+--------+---------+---------+---------+---------+--------- (c) N 481 561 471 491 200 Water --------+---------+---------+---------+---------+--------- , I 87344.11 28479.51 792448.91 132489.91 252569.6 --------+--------+---------+---------+---------+---------+--------- (d) N I 52\ 561 501 50\ 208 Telepho- --------+---------+----~----+---------+---------+--------- ne \ \ 891609.5\ 247177.8\1668297.211091658.611020037.1 --------+--------+---------+---------+---------+---------+-------~- (e) N \ 481 551 46\ 481 197 Liquid fuel --------+---------+---------+---------+---------+--------- \ 12127877.81 488535.313489993.51 279162421 11256855 --------+--------+---------+---------+---------+---------+--------- (f) N 1 49\ 541 48\ 481 199 --------+---------+---------+---------+---------+--------- Solid fuel and \ gas I 2097640.8 I I 22741.5 1261639.2 I 153873.3 I 914602.1 --------+--------+---------+---------+---------+---------+--------- (g) N I sol 551 491 481 202 Transpo- --------+---------+---------+---------+---------+--------- rtation costs \ I 3384178.0 I I I 220675.4 1984900.7 3511745.5 2665129.9 I --------+--------+---------+---------+---------+---------+--------- (h) N I 521 551 521 511 210 Security --------+---------+---------+---------+---------+--------- , I 854905.01 60506.51 569297.311618353.51 952273.3 --------+--------+---------+---------+---------+---------+--------- (i) N I 491 ·551 501 511 205 Mainten- --------+---------+---------+---------+---------+--------- ance and , repair I 3485112.3 I 689511.8 I 11326293 I I 11631348 7611758.8 (CONTINUED) 27 --------------------------------------------------------------------- Sector: 'Indirect costs Food Wood 1 Textile 1 Metal ALL -----------------+---------+---------+---------+---------+--------- (j) N sol 551 511 sol 206 Promoti- --------+---------+---------+---------+---------+--------- on and % adverti- sing 1406136.5 212836.6 325403.0 1289631.1 960940.8 --------+--------+---------+---------+---------+---------+--------- (k) N 1 52/ 561 501 SO/ 208 Total --------+---------+---------+---------+---------+--------- interest , payments 2620055.3 321282.8 16623035 44286604 20017892 --------+--------+---------+---------+---------+---------+--------- (1) N I 501 551 521 491 206 External --------+---------+---------+---------+---------+--------- account- , ants I 108228.5 I 57141.7 I 85355.0 I 117141.3 I 98993.4 --------+--------+---------+---------+---------+---------+--------- (m) N 1 491 541 521 481 203 External --------+---------+---------+---------+---------+--------- cleaning , services 3119.4 1256.3 446.3 186.4 1234.1 --------+--------+---------+---------+---------+---------+--------- (n) N 1 491 561 511 501 206 Insuran- --------+---------+---------+---------+---------+--------- ce , 11915204.41 408548.911299850.014170871.3/2376318.2 28 Table 2:6b .' --------------------------------------------------------------------- Indirect costs Employment intervals ------------------------------------------------- 1 - 5 1 6 - 20 \ 21 - 75 \76 - 500 I 501 + -----------------+---------+---------+---------+---------+--------- (a) N 561 52\ 531 401 7 Rent. --------+------~--+---------+---------+---------+--------- , \ 12763.51 23839.0\ 170679.61 717317.S\ 194606.1 --------+--------+---------+---------+---------+---------+--------- (b) N \ s51 53\ 511 41\ 6 E1ectri- --------+---------+---------+---------+---------+--------- city , 1 16939.01 26504.51 328952.515008109.81 11321077 --------+--------+---------+---------+---------+---------+--------- (c) N 1 54\ 501 50 \ 40 1 6 Water --------+---------+---------+---------+---------+--------- , \ 538.51 2539.91 47670.6\ 276837.21 737601.1 --------+--------+---------+---------+---------+---------+--------- (d) N \ 541 541 521 411 7 Telepho- --------+---------+---------+---------+---------+--------- ne , 1 2383.91 18038.41 176284.3\1543279.411971399.6 --------+--------+---------+---------+---------+---------+--------- (e) N \ 54\ 491 49\ 381 7 Liquid fuel --------+---------+---------+---------+---------+--------- , \ 1885.91 23038.41 355124.213148897.3\ 29275564 --------+--------+---------+---------+---------+---------+--------- (f) N I 54\ 50\ 491 391 7 --------+---------+---------+---------+---------+--------- Solid fuel and , gas I 65.0 I 2995.2 I 10576.7 I I 491436.3 2292364.6 --------+--------+---------+---------+---------+---------+--------- (g) N 1 551 521 491 391 7 Transpo- --------+---------+---------+---------+---------+--------- rtation costs , I 16882.2 I 18986.8 I I I 212430.6 2087247.3 6284767.1 --------+--------+---------+---------+---------+---------+--------- (h) N I 561 541 521 411 7 Security --------+---------+---------+---------+---------+--------- , 1 2525.61 16406.71 95965.311675697.511765266.3 --------+--------+---------+---------+---------+---------+--------- (i) N 1 561 531 491 40 I 7 Kainten- --------+---------+---------+---------+---------+--------- ance and repair % I 1955.3 I 14760.7 I I 169634.7 4027885.4 I 19323249 (CONTINUED) 29 --------------------------------------------------------------------- Employment intervals Indirect costs ------------------------------------------------- 1 - 5 I 6 - 20 I 21 - 75 176 - 500 1 501 + -----------------+---------+---------+---------+---------+--------- (j) N 551 531 511 40/ 7 Promoti- --------+---------+---------+---------+---------+--------- on and % adverti- sing 97.2 2647.4 102707.7 2730431.2 1218634.7 --------+--------+---------+---------+---------+---------+--------- (k) N 551 531 521 411 7 Total --------+---------+---------+---------+---------+--------- interest % , payments ! 6031.6 27741.0 456074.6 8961926.7 51630558 --------+--------+---------+---------+---------+---------+--------- (1) N 1 551 531 521 391 7 External --------+---------+---------+---------+---------+--------- account- , ants I 10015.0 I 3321.9 I 34344.4 I 316225.8 I 93425.9 --------+--------+---------+---------+---------+---------+--------- (m) N 1 541 531 sol 391 7 External --------+---------+---------+---------+---------+--------- cleaning % services 1.8 7.4 1834.3 5391. 6 0.0 --------+--------+---------+---------+---------+---------+--------- (n) N / 531 531 531 40 I 7 Insuran- --------+---------+---------+---------+---------+--------- ce % I 3035.91 11090.61 291132.SI1907962.5155S1191.1 (CONTINUED) 30 -----------------------------, Indirect costs I ALL -----------------+--------- (a) N I 208 Rent --------+--------- % 1 228342.0 --------+--------+--------- (b) N I 206 Electri- --------+--------- city % 13959272.1 --------+--------+--------- (c) N 1 200 Water --------+--------- % I 252569.6 --------+--------+--------- (d) N I 208 Telepho- --------+--------- ne % 11020037.1 --------+--------+--------- (e) N I 197 Liquid fuel --------+--------- , I 11256855 --------+--------+--------- (f) N I 199 Solid --------+--------- fuel and , gas I 914602.1 --------+--------+--------- (g) N 202 I Transpo- --------+--------- rtation , costs 2665129.9 --------+--------+--------- (h) IN I 210 Security+--------+--------- I' I 952273.3 --------+--------+--------- (i) N I 205 I Mainten- --------+--------- anee and , repair 7611758.8 (CONTINUED) 31 ----------------------------- Indirect costs I ALL -----------------+--------- (j) N I 206 Promoti- --------+--------- on and adverti- sing · I 960940.8 --------+--------+--------- (k) N I 208 Total interest --------+--------- 1; payments 20017892 --------+--------+--------- (1 ) N 206 External --------+--------- account- , ants I 98993.4 --------+--------+--------- (m) N I 203 External --------+--------- cleaning \ services 1234.1 --------+--------+--------- (n) N I 206 Insuran- --------+--------- ce , 12376318.2 32 Table 2: 7a --------------------------------------------------------------------- Sector: Food Wood I Textile I Metal ALL -----------------+---------+---------+---------+---------+--------- Gross N I 471 50/ 431 441 184 profits --------+---------+---------+---------+---------+--------- Ksh I 162076061 10924151/ 12526638/ 485653541 27835748 --------+--------+---------+---------+---------+---------+--------- Depreci- N / 401 481 421 411 171 ation --------+---------+---------+---------+---------+--------- Ksh 13308167.61 785452.91 125026041 18474039/ 11006465 --------+--------+---------+---------+---------+---------+--------- Dividend N 1 471 521 471 481 194 payments --------+---------+---------+---------+---------+--------- Ksh 13018478.61 614116.41 239883.01 756598.911136050.7 --------+--------+---------+---------+---------+---------+--------- Company N I 471 511 SOl 421 190 tax paid --------+---------+---------+---------+---------+--------- Ksh 14395562.511116433.311431023.011897638.512238408.7 --------+--------+---------+---------+---------+---------+--------- Sales/v- N I 461 521 511 451 194 alue- --------+---------+---------+---------+---------+--------- :::e:aid Ksh 158060670612725481.4/ 129196531 444416941 20734801 --------+--------+---------+---------+---------+---------+--------- Local N I . 481 531 SO I 451 196 Authori- ties --------+---------+---------+---------+---------+--------- Ksh service charges 42885.0 52204.4 18591.4 528983.2 221079.6 --------------------------------------------------------------------- 33 Table 2:7b --------------------------------------------------------------------- Employment intervals ------------------------------------------------- 1 - 5 I 6 - 20 \ 21 - 75 \76 - 500 I 501 + -----------------+---------+---------+---------+---------+--------- Gross N I 51\ 44\ 471 361 6 profits --------+---------+---------+---------+---------+--------- · Ksh 1 65587.41 266240.313002353.21 38459547\ 61765992 --------+--------+---------+---------+---------+---------+--------- Depreci- N \ 40 I 42\ 46\ 37\ 6 ation --------+---------+---------+---------+---------+--------- Ksh 1 1057.1\ 30030.81 428965.216467829.41 28855023 --------+--------+---------+---------+---------+---------+--------- Dividend N \ 49\ 461 53\ 401 6 I 1 payments --------+---------+---------+---------+---------+--------- Ksh I 1233.3\ 1825.51 106191.115378021.0\ 0.0 --------+--------+---------+---------+---------+---------+--------- Company N 1 511 481 471 381 6 tax paid --------+---------+---------+---------+---------+--------- Ksh 1 3954.7\ 15184.8\ 384594.319554230.91 861689.6 --------+--------+---------+---------+---------+---------+--------- Sales/v- N I 521 50 I 47\ 38\ 7 --------+---------+---------+---------+---------+--------- alue- added tax paid Ksh 1422.9 I 28813.4 I 683678.0 I 12059207 I 51191336 --------+--------+---------+---------+---------~---------+--------- Local N I 53\ 51\ 491 381 5 Authori- ties --------+---------+---------+---------+---------+--------- Ksh service charges 965.8 2642.8 13761.3 117096.2 600435.6 (CONTINUED) 34 " _ _,_._ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ "'r_ .' ALL -----------------+--------- Gross N 184 profits --------+--------- Ksh ! 27835748 --------+--------+--------- Depreci- N I 171 ation --------+--------- Ksh I 11006465 --------+--------+--------- Dividend N I 194 payments --------+--------- Ksh 11136050.7 --------+--------+--------- Company N 1 190 tax paid --------+--------- Ksh 12238408.7 --------+--------+--------- Sales/v- N I 194 --------+--------- alue- added tax paid Ksh I 20734801 --------+--------+--------- Local N 196 Authori- --------+--------- ties Ksh service charges 221079.6 35 Table 2.8a ------------------------------------------------- Sector: Food IWOOd IT~~!-IMetal ALL -----------------+-----+-----+-----+-----+----- Usual · mode of operati- on --------+-------- One- shift I' 59.3 86.6 52.8 --------+--------+-----+-----+-----+-----+----- 49.5 59.1 ~~;t I' I 32.31 13.11 4.51 4.71 13.8 --------+--------+-----+-----+-----+-----+----- !:~;~- I' 1 .1 38.,1 8.41 45.81 26.2 --------+--------+-----+-----+-----+-----+----- Other 1, I · 1 · 1 4.0 I · I O. 8 --------+--------+-----+-----+-----+-----+----- @ I' 1 · / 0.31 ./ ·1 0.1 --------+--------+-----+-----+-----+-----+----- ALL \' 1100.01100.01100.01100.01100.0 Table 2:8b Employment intervals 1 - 1 51 ;0- ;5- I':o~ 1501 + ALL 2 -----------------+-----+-----+-----+-----+-----+----- Usual mode of operati- on --------+-------- One- shift I' 100.0 98.9 90.3 52.8 --------+--------+-----+-----+-----+-----+-----+----- 15.2 59.1 :~;t I' 1.1 0.,1 5.,112.,129.4113.8 --------+--------+-----+-----+-----+-----+-----+----- !~~;~- I' 1.1.1 3.51 30.61 55.31 26.2 --------+--------+-----+-----+-----+-----+-----+----- Other 1, I · I 0.41 · 1 3.91 · / 0.8 --------+--------+-----+-----+-----+-----+-----+----- @ 1% 1'·1·1 0.51 ·1 .1 0.1 --------+--------+-----+-----+-----+-----+-----+----- ALL 1% 1100.01100.01100.01100.01100.01100.0 36 Table 2:10a ------------------------------------------------- Obstacle cap. Sector: utilization Food /WOOd IT:~:-IMetal ALL -----------------+-----+-----+-----+-----+----- Shortage local raw mat. and into inputs --------+-------- Not an 1% obstacle 83.6 61.4 87.9 85.9 81.2 --------+--------+-----+-----+-----+-----+----- :~:~~~~:I% 1 6.8/ 21.71 2.6/ 4.01 7.6 --------+--------+-----+-----+-----+-----+----- :~:~~~lel' 1 9.61 16.91 9.51 10.11 11.2 --------+--------+-----+-----+-----+-----+----- ALL I' 1100.01100.01100.01100.0/100.0 Table 2:10b Obstacle cap. Employment intervals utilization ~o- 1 ;5- 17~0~ 1501 + ALL 2 1 - 51 -----------------+-----+-----+-----+-----+-----+----- Shortage local raw mat. and into inputs --------+-------- Not an obstacle I' 72.0 48.9 91.9 80.6 100.0 81.2 --------+--------+-----+-----+-----+-----+-----+----- :~:~~~~:I% I 11.21 24.61 s.sl .12.21 --------+--------+-----+-----+-----+-----+-----+----- 7.6 :~:~~:lel' 1 16.71 26.51 5.91 13.61 .1 11.2 --------+--------+-----+-----+-----+-----+-----+----- ALL I' 1100.01100.01100.0/100.01100.01100.0 38 Table 2:9a .. --------------------------------------------------------------------- Sector: Food Wood Textile Metal ALL -----------------+---------+---------+---------+---------+--------- How much N 1 521 561 511 53! 212 more with --------+---------+---------+---------+---------+--------- % existing equipme- nt: 30.7 63.3 197.1 44.3 74.1 Table 2:9b Employment intervals 1 - 5 6 - 20 21 - 75 176 - 500 501 + -----------------+---------+---------+---------+---------+--------- How much N I 551 531 541 421 8 more with % --------+---------+---------+---------+---------+--------- existing equipme- nt: 137.8 61.4 46.3 144.0 16.9 (CONTINUED) ALL -----------------+--------- How much N I 212 more with --------+--------- , existing equipme- nt: 74.1 37 Table 2:10e ------------------------------------------------- Sector: Obstacle cap. utilization Food Iwood IT~~~-IMetal ALL -----------------+-----+-----+-----+-----+----- Shortage of skilled labor --------+-------- Not an obstacle I' 97.2 87.9 77.8 80.7 85.1 --------+--------+-----+-----+-----+-----+----- :~::~~~:I' I 2.81 5.01 11.81 17.51 10.7 --------+--------+-----+-----+-----+-----+----- ::::~~lel' 1.1 7.11 10.41 1.81 4.3 --------+--------+-----+-----+-----+-----+----- ALL I' /100.01100.01100.01100.01100.0 Table 2:10f Obstacle cap. Employment intervals utilization 17~0~ 2 1 - 51 ;0- 1 ;5- 1501 + ALL -----------------+-----+-----+-----+-----+-----+----- Shortage of skilled labor --------+-------- Not an obstacle I' 91.3 72.5 87.2 73.6 95.0 85.1 --------+--------+-----+-----+-----+-----+-----+----- :~:::~~:I' I 4.41 20.91 7.71 18.61 10.7 --------+--------+-----+-----+-----+-----+-----+----- s.ol :::::~lel' 1 4.31 6.,1 5.11 ,.91 .1 4.3 --------+--------+-----+-----+-----+-----+-----+----- ALL I' 1100.0/100.0/100.01100.0/100.0/100.0 40 Table 2:10c ------------------------------------------------- Obstacle cap. sector: utilization Food Iwood IT~~:-IMetal ALL -----------------+-----+-----+-----+-----+----- Shortage import raw mat. and into inputs --------+-------- Not an obstacle I' 88.0 84.2 83.3 85.3 85.2 --------+--------+-----+-----+-----+-----+----- :~:~~:~:I' I 9.11 5.91 16.71 --------+--------+-----+-----+-----+-----+----- 4.41 8.4 ~~:~~~lel\ 1 2.91 9.91 .110.31 6.3 --------+--------+-----+-----+-----+-----+----- ALL I' 1100.01100.0\100.0\100.01100.0 Table 2:10d Obstacle cap. Employment intervals utilization ~O- 1 ;5- 17~0~ 1501 + ALL 2 1 - 51 -----------------+-----+-----+-----+-----+-----+----- Shortage import raw mat. and into inputs --------+-------- Not an obstacle I" 86.6 74.2 92.0 80.1 90.9 85.2 --------+--------+-----+-----+-----+-----+-----+----- :~:~~~~:l.. I 13.41 14.51 5.11 --------+--------+-----+-----+-----+-----+-----+----- 1.01 9.11 8.4 . ~~:~~~lel' I .111.31 2.9118.91 .1 6.3 --------+--------+-----+-----+-----+-----+-----+----- ALL I' 1100.01100.01100.01100.01100.01100.0 39 Table 2:109 .. ------------------------------------------------- Obstacle cap. Sector: utilization Food IWOOd IT~~:-IMetal ALL -----------------+-----+-----+-----+-----+----- Equipme- nt breakdo- wns --------+-------- Not an obstacle I' 91.0 89.9 80.2 93.0 89.2 --------+--------+-----+-----+-----+-----+----- :~:~~~~:I\ 1 6.81 a.sl 19.81 7.01 10.0 --------+--------+-----+-----+-----+-----+----- ~~:~~~le r' I 2.21 1. 61 .1 .1 0.8 --------+--------+-----+-----+-----+-----+----- ALL I' 1100.01100.01100.01100.01100.0 Table 2:10h Obstacle cap. Employment intervals utilization ~o- 12~s- 17:0~ 1501 + ALL 1 - 51 -----------------+-----+-----+-----+-----+-----+----- Equipme- nt breakdo- wns --------+-------- Not an obstacle I' 84.4 89.4 90.9 84.3 95.0 89.2 --------+--------+-----+-----+-----+-----+-----+----- :~=~::~:I' I 14.81 9.61 5.41 15.7/ --------+--------+-----+-----+-----+-----+-----+----- 5.01 10.0 ~~:~~~ le 1' 1 0.81 O. 91 3 · 71 .1 .1 0 ·8 --------+--------+-----+-----+-----+-----+-----+----- ALL I' 1100.01100.01100.01100.01100.01 100.0 41 Table 2:10i ------------------------------------------------- Obstacle cap. Sector: utilization Food IWOOd IT~~:-IMetal ALL -----------------+-----+-----+-----+-----+----- Lack of working capital --------+-------- Not an obstacle I' 79.5 50.5 57.8 78.7 69.1 --------+--------+-----+-----+-----+-----+----- :~:~~~~:l\ I 6.s1 9.7/ 18.s1 --------+--------+-----+-----+-----+-----+----- 7.31 10.1 :::~::lel' 113.71 39.sl 23.5114.11 20.S --------+--------+-----+-----+-----+-----+----- ALL I' 1100.01100.01100.01100.01100.0 Table 2:10j Obstacle cap. Employment intervals utilization ~O- 12~5- 17:0~ 1501 + ALL 1 - 51 -----------------+-----+-----+-----+-----+-----+----- Lack of working capital --------+-------- Not an obstacle I' 35.9 34.2 88.3 84.2 89.9 69.1 --------+--------+-----+-----+-----+-----+-----+----- :~:~:~~:I' I 5.51 23.41 7.S\ 13.01 --------+--------+-----+-----+-----+-----+-----+----- 5.01 10.1 :::~~:lel\ I 58.61 42.4/ 4.01 2.81 --------+--------+-----+-----+-----+-----+-----+----- 5.11 20.8 ALL I' 1100.01100.01100.01100.01100.01100.0 ------------------------------------------------------- 42 Table 2:10k ------------------------------------------------- Sector: Obstacle cap. utilization Food IWOOd IT:~:-'Metal ALL -----------------+-----+-----+-----+-----+----- Lack of 1 demand --------+-------- Not an obstacle I' 31.2 13.8 3.1 58.1 32.0 --------+--------+-----+-----+-----+-----+----- :~:~~~~:I' I 1.61 15.71 22.51 11.61 12.5 --------+--------+-----+-----+-----+-----+----- :::~~~lel' 1 67.21 70.51 74.4/ 30.31 55.5 --------+--------+-----+-----+-----+-----+----- ALL I' 1100.01100.01100.01100.01100.0 Table 2:101 Obstacle cap. Employment intervals utilization ~o- /2;5- 17~0~ 1501 + ALL 1 - 5/ -----------------+-----+-----+-----+-----+-----+----- Lack of 1 demand --------+-------- Not an obstacle I' 32.4 26.7 11.2 9.3 60.0 32.0 --------+--------+-----+-----+-----+-----+-----+----- :~:~~~~:I' I 19.61 20.sl 7.21 20.71 --------+--------+-----+-----+-----+-----+-----+----- .1 12.5 ~::~~~lel\ I 47.91 52.51 81.71 70.0\ 40.01 55.5 --------+--------+-----+-----+-----+-----+-----+----- ALL I' 1100.01100.01100.01100.01100.01100.0 43 Table 2:11a ------------------------------------------------- Sector: Food IWOOd IT~~!-IMetal ALL -----------------+-----+-----+-----+-----+----- Exports I products --------+-------- 43.4 19.4 48.8 73.B 51.1 Yes I' --------+--------+-----+-----+-----+-----+----- No I' 1 56.61 80.61 51.21 26.21 4B.9 --------+--------+-----+-----+-----+-----+----- ALL I' 1100.01100.01100.01100.01 100 · 0 I· Table 2:11b Employment intervals 1 - 51 ~o- 12~5- 17~0~ 1501 + ALL -----------------+-----+-----+-----+-----+-----+----- Exports I products --------+-------- B.1 0.5 19.4 58.1 100.0 51.1 Yes I' --------+--------+-----+-----+-----+-----+-----+----- No I' 1 91.91 99.51 80.61 41.91 .1 4B.9 --------+--------+-----+-----+-----+-----+-----+----- ALL I' 1100.01100.01100.01100.01100.01100.0 · 3· COMPETITION .. competitive pressure in Kenya is generally low. Firms often face very few competitors (Tables 3:1a-b). Typically, firms believe that they are competing with a limited number of firms, say 2-5. However, this question may, however, be interpreted differently by firms depending on the scope of their operations, where large firms sellon the national market, and small firms only locally. The latter may then in actual fact indirectly be competing with many more firms than it seems. Still, we asked the firms about their share of "their" market. The larger firms especially reported a large market share in the domestic market (Tables 3:2a-b), further indicating low competitive pressure. There is considerable variation among the sectors, however. There were higher levels of market concentration in the metal sector: 48.6\ of the firms in the metal sector said that their market share was between 51-99\. In food and textiles, less than 10% thought they had a market share between 51-99%;. The nature of products and the level of capital investments required were perhaps some of the factors which reduced the perceived level of competition in the metal and wood sectors compared to the textile and food sectors. We also asked the firms about the determinants of their pricing decisions (Tables 3:3a-f). Pricing according to costs is dominant, while competition from domestic firms plays a much more limited role. Import competition matters mostly for the larger firms, particularly in textiles and metal, the former even more than the latter. As we have already noted, a lot of second-hand clothes have entered the market, and there are also widespread complaints that textiles and clothing come into the country without paying the appropriate tariffs, etc., which presents unfair competition. It remains to be seen whether the malpractices can be eliminated. There was .no clear link between exports and the level of competition as measured by the degree of concentration. For instance, in the wood sector with low levels of concentration, only 19.4\ reported that they exported some output, while the highly concentrated metal sector had the best export performance with 74\ of the firms reporting some exports (Table 2:11a). We need to investigate further to what extent the low competitive pressure in Kenyan manufacturing explains its low level of international competitiveness. Experience from a range of countries suggest that it plays a very important 45 role. , l 46 Table 3:1a ------------------------------------------------- Sector: Food IWOOd IT~~!-IMetal ALL -----------------+-----+-----+-----+-----+----- How many compet. princip- al product- /range --------+-------- 0.9 None 2.6 0.1 0.8 I' --------+--------+-----+-----+-----+-----+----- One I' 1 3.21 11. 71 6.01 2.91 5.1 --------+--------+-----+-----+-----+-----+----- 2-5 I' 1 47.01 13.71 33.01 70.01 46.7 --------+--------+-----+-----+-----+-----+----- 6-10 I' I 8.91 10.91 36.71 9.01 14.8 --------+--------+-----+-----+-----+-----+----- :~:: 10I' 1 40.01 63.71 21.71 18.01 32.6 --------+--------+-----+-----+-----+-----+----- ALL I' 1100.01100.01100.01100.01100.0 Table 3:1b Employment intervals ~o- 17~0~ 2 1 - 51 1 ;5- 1501 + ALL -----------------+-----+-----+-----+-----+-----+----- How many compet. princip- al product- /range --------+-------- None I' 0.3 4.1 0.8 --------+--------+-----+-----+-----+-----+-----+----- One I' 1 5 . 31 ·1 . 1 11. 0 I 5 · 5 1 5 · 1 --------+--------+-----+-----+-----+-----+-----+----- 2-5 I' 1 31.21 17.21 17.41 31.41 83.61 46.7 --------+--------+-----+-----+-----+-----+-----+----- 6-10 I' I 16.41 8.31 6.91 30.0/ 10.91 14.8 --------+--------+-----+-----+-----+-----+-----+----- :~:: 10I' .1 147.11 74.31 75.71 23.sl --------+--------+-----+-----+-----+-----+-----+----- 32.6 ALL I' 1100.01100.01100.01100.01100.01100.0 47 Table 3:2a ------------------------------------------------- Sector: Food /WOOd IT~~:-/Metal ALL -----------------+-----+-----+-----+-----+----- Market I share: --------+-------- Less \ than 5 percent 32.8 33.0 23.7 8.3 22.2 --------+--------+-----+-----+-----+-----+----- !:~~ent I' I 6.61 3.11 20.61 10.21 --------+--------+-----+-----+-----+-----+----- 9.8 !!;~!nt I' 1 13041 32.11 25.91 21.61 22.1 --------+--------+-----+-----+-----+-----+----- !!;~~nt I' 1 43.01 15.31 19.91 11.11 22.2 --------+--------+-----+-----+-----+-----+----- !!;::nt I' I 7.71 13.01 9.91 48.61 23.7 --------+--------+-----+-----+-----+-----+----- ~~~cent I' 1.1.1./ 0.11 --------+--------+-----+-----+-----+-----+----- 0.0 ALL I' 1100.01100.01100.01100.01100.0 48 Table 3:2b ------------------------------------------------------- Employment intervals ~o- 1 ;5- 17~0~ 1501 + ALL 2 1 - 5/ -----------------+-----+-----+-----+-----+-----+----- Market I share: --------+-------- Less , than 5 percent 51.8 25.9 64.6 6.7 22.2 --------+--------+-----+-----+-----+-----+-----+----- ~!~ent I' I 4.4/ 21.5/ 9.8 9.31 --------+--------+-----+-----+-----+-----+-----+----- 4.71 10.91 ~!;~:nt I' I 21.21 35.31 6.9/ 23.sl 21.61 22.1 --------+--------+-----+-----+-----+-----+-----+----- ;:;!~nt I' / 20.91 17.11 10.91 30.91 24.01 22.2 --------+--------+-----+-----+-----+-----+-----+----- !!;~!nt I' 1 1. 71 .1 8.31 33.81 43.51 23.7 --------+--------+-----+-----+-----+-----+-----+----- ~~~eent I' 1./ o. 3/ .1 .1 .1 0.0 --------+--------+-----+-----+-----+-----+-----+----- ALL I' 1100.01100.01100.01100.01 100.01 100.0 .. 49 Table 3:3a ------------------------------------------------- Importance for Sector: prices ----------------------- Food IWOOd IT:~:-IMetal ALL -----------------+-----+-----+-----+-----+----- (a) Cost finance- Iraw mat. , and utiliti- I es ! --~-----+-------- Not , importa- nt 0.1 17.1 10.2 2.4 S.S --------+--------+-----+-----+-----+-----+----- Somewhat , importa- nt 3.9 2.7 19.9 0.8 5.8 --------+--------+-----+-----+-----+-----+----- !~porta-I' I 4.sl 13.41 9.91 27.51 15.3 --------+--------+-----+-----+-----+-----+----- Very , importa- nt 91.2 66.S 59.9 69.3 73.2 --------+--------+-----+-----+-----+-----+----- ALL I' 1100.01100.01100.01100.01100.0 ------------------------------------------------- 50 Table 3:3b ------------------------------------------------------- Employment intervals Importance for prices ----------------------------- 1 - 51 ~o- '2~5- 17~0~ 1501 + ALL -----------------+-----+-----+-----+-----+-----+----- (a) Cost finance- /raw mat. , and utiliti- es --------+-------- Not , importa- nt 2.9 6.7 1.1 6.8 8.0 5.8 --------+--------+-----+-----+-----+-----+-----+----- Somewhat " importa- nt 5.S 0.1 3.1 1.6 10.9 S.B --------+--------+-----+-----+-----+-----+-----+----- !~porta-I' 1 9.61 10.71 12.51 20.31 18.41 15.3 --------+--------+-----+-----+-----+-----+-----+----- Very " importa- nt 81.7 82.5 83.2 71.3 62.7 73.2 --------+--------+-----+-----+-----+-----+-----+----- ALL I' 1100.01100.01100.01100.01100.01 100 · 0 51 Table 3;3e ------------------------------------------------- Sector: Importance for prices ----------------------- Food IWOOd IT~~:-IMetal ALL -----------------+-----+-----+-----+-----+----- (b) compete other firms prod. domestic , i' --------+-------- Not , importa- nt 16.8 43.1 17.9 45.8 32.9 --------+--------+-----+-----+-----+-----+----- Somewhat , importa- nt 43.3 10.2 18.1 7.4 18.1 --------+--------+-----+-----+-----+-----+----- !~porta-I' I 16.61 23.81 44.71 32.S! 30.2 --------+--------+-----+-----+-----+-----+----- Very , importa- nt 23.3 22.9 19.3 13.9 18.S --------+--------+-----+-----+-----+-----+----- ALL I' 1100.01 1 0 0 · 0 1 00.01100.01100.0 1 ------------------------------------------------- 52 ." Table 3:3d ------------------------------------------------------- Importance for Employment intervals prices 1 - 51 ;0- 12~5- 17~0~ 1501 + ALL -----------------+-----+-----+-----+-----+-----+----- (b) Compete other firms prod. domesti- c. --------+-------- Not , importa- nt 29.2 27.5 9.4 21.7 55.4 32.9 --------+--------+-----+-----+-----+-----+-----+----- Somewhat , importa- nt 18.1 7.9 65.7 11.7 7.3 18.1 --------+--------+-----+-----+-----+-----+-----+----- !~porta-I' 1 35.91 26.01 11.71 34.31 33.21 30.2 --------+--------+-----+-----+-----+-----+-----+----- Very , importa- nt 16.8 38.7 13.3 32.3 4.0 18.8 --------+--------+-----+-----+-----+-----+-----+----- ALL I' 1100.01100.01100.01100.01100.01100.0 53 Table 3:3e ------------------------------------------------- Importance for Sector: prices Food IWOOd IT~~:-IMetal ALL -----------------+-----+-----+-----+-----+----- (C) To compete with imports --------+-------- Not , importa- nt 87.6 91.6 37.9 26.3 53.6 --------+--------+-----+-----+-----+-----+----- Somewhat , importa- nt 7.0 6.3 9.2 44.2 21.8 --------+--------+-----+-----+-----+-----+----- !~porta-I' 1 2.31 2.11 33.4/ 18.9/ 15.5 --------+--------+-----+-----+-----+-----+----- Very , importa- nt 3.0 19.4 10.6 9.0 --------+--------+-----+-----+-----+-----+----- ALL I' ·1100.01100.0/100.0/100.01100.0 54 Table 3:3f ------------------------------------------------------- Importance for Employment intervals prices 1 - 51 ~o- t2~5- 17;0~ 1501 + ALL -----------------+-----+-----+-----+-----+-----+----- (e) To compete with imports --------+-------- Not , importa- nt 83.8 84.3 84.2 47.8 11.0 53.6 --------+--------+-----+-----+-----+-----+-----+----- Somewhat , importa- nt 7.2 13.0 7.2 11.4 48.4 21.8 --------+--------+-----+-----+-----+-----+-----+----- ~~porta-I' 1 6.41 0.81 4.21 15.21 33.21 15.5 --------+--------+-----+-----+-----+-----+-----+----- Very , importa- nt 2.7 2.0 4.4 25.6 7.3 9.0 --------+--------+-----+-----+-----+-----+-----+----- ALL I' 1100.01100.01100.01100.01100.01100.0 55 4. TECHNOLOGY ACQUISITION Since only very few firms are engaged in technology acquisition, it may be somewhat misleading to present weighted results. Instead we show tables with the actual numbers of sample firms responding. This year only 2 of our sample firms added any foreign license (even less than the 3 last year), while 2 firms dropped a license (Tables 4:1a-b). Last year only 1 firm signed a new technical assistance contract, but this year 6 firms did so (Tables 4:2a-b). In spite of this small increase, the conclusion from previous rounds remains: There is very little technology transfer to Kenya in the form of licensing or technical assistance contracts. What there is comes with investments in foreign equipment, or with employed expatriates (both managerial and technical) (Table 4:3a-b). The number of employed expatriates was essentially the same as last year. There were 46 firms in the sample, which had at least one expatriate employed (Tables 4:3a-b). Expatriates were evenly spread across our four sectors, but concentrated mainly in the medium and large firms. Small firms are unlikely to have adequate resources for expatriate salaries. We also asked about the levels of education of the general manager (Tables 4:4a-b) and of the production manager (Tables 4:5a-b), to the extent that firms had such positions. In our sample there were 107 general managers and 43 production managers. In general, persons in these positions had at least secondary education. In the medium and large firms, a very high percentage of the general managers actually had a university degree. Half of the production managers had a technical university degree, while most of the others had secondary education. Some general managers probably double up as production managers, while the children of the proprietors were sometimes sent abroad for training in production engineering. Those categories may not be designated as production m~nagers, while still playing that role. It is difficult to say whether the firms have been able to get the type of personnel they seek, but those that hire a production manager seem to mostly hire a person with a university degree. That so small a fraction actually do employ such personnel may partly be explained by the scale or type of operation, but it still suggests that the capacity to absorb new technology is not very developed in Kenyan manufacturing. 56 .' The low acquisition rate of new technologies by Kenyan manufacturing firms may .' be'explained by a number of factors, one of which is the fact that many of the "firms are not exposed to international competition, which is often an important motivation for acquisition of new technologies. The low degree of competition in the domestic market, which is sometimes not very quality conscious, has also tended to dampen demand for new technologies. 57 Table 4:1a Sample Results ------------------------------------------------- Sector: Food IWOOd IT~~:-IMetal ALL -----------------+-----+-----+-----+-----+----- Dropped or added any foreign licenses --------+-------- Dropped N 1 1 2 --------+-----+-----+-----+-----+----- , /5.0/ 5.0\ .1 .\ 2.8 --------+--------+-----+-----+-----+-----+----- No N 1 191 191 131 171 68 change --------+-----+-----+-----+-----+----- \ 1 95.01 9s.01 92.91 94.41 94.4 --------+--------+-----+-----+-----+-----+----- Added N /. 1 ·/ 11 11 2 --------+-----+-----+-----+-----+----- \ 1 . 1 . 1 7 . 1 1 S.61 2.8 --------+--------+-----+-----+-----+-----+----- ALL N I 20\ 201 141 181 72 --------+-----+-----+-----+-----+----- , 1100.01100.01100.01100.01100.0 Table 4:1b Sample Results Employment intervals ~o- 17:0~ 2 1 - sl 1 ;5- 1501 + ALL -----------------+-----+-----+-----+-----+-----+----- Dropped or added any foreign licenses --------+-------- Dropped N 1 1 2 --------+-----+-----+-----+-----+-----+----- , . 1 . 1 4.51 5.61 .\ 2.8 --------+--------+-----+-----+-----+-----+-----+----- N~' N I 161 121 191 171 4\ 68 change --------+-----+-----+-----+-----+-----+----- , 1100.01100.01 86.41 94.41100.01 94.4 --------+--------+-----+-----+-----+-----+-----+----- Added N ·1·1 21 ·1 ·1 2 --------+-----+-----+-----+-----+-----+----- , 1 · 1 · 1 9.11 .1 ·1 2.8 --------+--------+-----+-----+-----+-----+-----+----- ALL N 161 121 221 181 41 72 --------+-----+-----+-----+-----+-----+----- , 1100.01100.01100.01100.01100.01100.0 58 : .' Table 4:2a Sample Results ------------------------------------------------- Sector: Food IWOOd IT~~:-IMetal ALL -----------------+-----+-----+-----+-----+----- signed/- termtd foreign tech. assist. --------+-------- Dropped N 2 2 --------+-----+-----+-----+-----+----- !is I l l . a l . I . I . 1 3.1 --------+--------+-----+-----+-----+-----+----- Added N I 11 11 11 31 6 --------+-----+-----+-----+-----+----- % 1 5.91 5.61 a.31 17.61 9.4 --------+--------+-----+-----+-----+-----+----- No N 1 141 171 111 141 56 change --------+-----+-----+-----+-----+----- % I 82.41 94.41 91.71 82.41 87.5 --------+--------+-----+-----+-----+-----+----- ALL N I 171 181 121 171 64 --------+-----+-----+-----+-----+----- % 1100.01100.01100.01100.01100.0 Table 4:2b Sample Results Employment intervals ~o- 17~0~ 2 1 - 51 1 ;5- 1501 + ALL -----------------+-----+-----+-----+-----+-----+----- Signed/- termtd foreign tech. assist. --------+-------- Dropped N 2 2 --------+-----+-----+-----+-----+-----+----- % 1·1 -I -I 11.11 ·1 3.1 --------+--------+-----+-----+-----+-----+-----+----- ~dded N 1.1 11 21 21 11 6 --------+-----+-----+-----+-----+-----+----- !is 1 . 1 11.11 10.51 11.11 25.01 9.4 --------+--------+-----+-----+-----+-----+-----+----- No N 1 141 al 171 141 31 56 change --------+-----+-----+-----+-----+-----+----- % 1100.01 88.91 89.51 77.81 75.01 87.5 --------+--------+-----+-----+-----+-----+-----+----- ALL N 1 14\ 9\ 191 181 41 64 --------+-----+-----+-----+-----+-----+----- !is 1100.01100.01100.01100.01100.01100.0 59 Table 4:3a sample Results ' ------------------------------------------------- Sector: Employed ----------------------- expatriates I IText-1 Food Wood i1e Metal ALL -----------------+-----+-----+-----+-----+----- capacity MULTIPLE ANSWERS ALLOWE --------+-------- Manager- N 7 5 2 1 15 ia1 --------+-----+-----+-----+-----+----- % I 63.61 41.71 20.01 7.71 32.6 --------+--------+-----+-----+-----+-----+----- Technic- N \ 41 61 61 101 26 al --------+-----+-----+-----+-----+----- % / 36.4/ 50.01 60.01 76.91 56.5 --------+--------+-----+-----+-----+-----+----- Adminis- N 1.1 11 11 11 3 trative --------+-----+-----+-----+-----+----- % 1 . / 8.31 10.01 7.71 6.5 --------+--------+-----+-----+-----+-----+----- other N I . I . 1 11 1\ 2 --------+-----+-----+-----+-----+----- , 1 . 1 . 1 1 0 . 0 1 7.71 4.3 --------+--------+-----+-----+-----+-----+----- ALL N 111 121 101 131 46 --------+-----+-----+-----+-----+----- , 1100.01100.01 100.01100.01100.0 60 Table 4:3b sample Results ------------------------------------------------- Employment intervals Employed expatriates -----------------+-----+-----+-----+-----+----- Capacity MULTIPLE ANSWERS ALLOWE --------+-------- Manager- N 1 2 12 15 ial --------+-----+-----+-----+-----+----- , 1 50.01 25.01 40.01 .1 32.6 --------+--------+-----+-----+-----+-----+----- Technic- N 1.1 51 151 61 26 a1 --------+-----+-----+-----+-----+----- , 1 . 1 62.51 50.01100.01 56.5 --------+--------+-----+-----+-----+-----+----- Adminis- N I . I . 1 31 ·I 3 trative --------+-----+-----+-----+-----+----- \ I · I . I 10.0 I . I 6.5 --------+--------+-----+-----+-----+-----+----- Other N I 11 11 ·1 ·I 2 --------+-----+-----+-----+-----+----- \ 1 50.0 I 12.51 .1 .1 4.3 --------+----.----+-----+-----+-----+-----+----- ALL N I 21 81 301 61 46 --------+-----+-----+-----+-----+----- \ 1100.01100.01100.01100.01100.0 61 Table 4:4a sample Results ------------------------------------------------- General Sector: manager Food IWOOd IT:~:-IMetal ALL -----------------+-----+-----+-----+-----+----- Highest complet- ed level of eduoati- on --------+-------- None N 1 J. 2 . f " --------+-----+-----+-----+-----+----- , / . / 3.7/ 4.8/ .1 1.9 --------+--------+-----+-----+-----+-----+----- Primary N / 31 3/ 31 5/ 14 --------+-----+-----+-----+-----+----- , I 9.4/ 11.1/ 14.31 18.5/ 13.1 --------+--------+-----+-----+-----+-----+----- Seconda- N I 131 111 101 61 40 ry --------+-----+-----+-----+-----+----- , 1 40.61 40.71 47.61 22.21 37.4 --------+--------+-----+-----+-----+-----+----- Vocatio- N 41 41 ·1 51 13 nal --------+-----+-----+-----+-----+----- , 1 12.51 14.81 ., 18.5 I 12.1 --------+--------+-----+-----+-----+-----+----- Univers- N 1 61 2/ 21 21 12 ity non- --------+-----+-----+-----+-----+----- teohnic- , a1 I I , I , 18.8 7.4 9.S 7.4 11.2 --------+--------+-----+-----+-----+-----+----- Univers- N 1 51 61 3/ 8/ 22 i ty /tec- --------+-----+-"----+-----+-----+----- hnical' I 15.61 22.2/ 14.31 29.61 20.6 --------+--------+-----+-----+-----+-----+----- Postgra- N 1 11 .1 21 11 4 duate abroad' --------+-----+-----+-----+-----+----- 1 3 .11 · 1 9 · 51 3 · 71 3 · 7 --------+--------+-----+-----+-----+-----+----- ALL IN I 321 271 211 271 107 . IALL I' 1100.01100.01100.01100.01100.01 62 Table 4:4b sample Results .. ------------------------------------------------------- General Employment intervals manager 1 - 51 ~o- 12~5- 17~0~ 1501 + ALL -----------------+-----+-----+-----+-----+-----+----- Highest complet- ed level of educati- on --------+-------- None N 1 1 2 --------+-----+-----+-----+-----+-----+----- , I 4.0/ 3.31 .1 .1 ·1 1.9 --------+--------+-----+-----+-----+-----+-----+----- Primary N I 91 41 11 .1 .1 14 --------+-----+-----+-----+-----+-----+----- , 1 36.01 13.31 4.0 I . I · 1 13.1 --------+--------+-----+-----+-----+-----+-----+----- Second a- N I 121 121 91 61 11 40 ry --------+-----+-----+-----+-----+-----+----- \ 1 4s.01 40.01 36.01 26.11 25.01 37.4 --------+--------+-----+-----+-----+-----+-----+----- Vocatio- N 1 21 61 51 .1 ./ 13 nal --------+-----+-----+-----+-----+-----+----- \ 1 8.01 20.0/ 20.01 ./ .1 12.1 --------+--------+-----+-----+-----+-----+-----+----- Univers- N I 11 21 61 21 11 12 ity non- --------+-----+-----+-----+-----+-----+----- technic- \ al I / I I I I 4.0 6.7 24.0 8.7 25.0 11.2 --------+--------+-----+-----+-----+-----+-----+----- Univers- N 1.1 51 41 121 1\ 22 ity/tec- --------+-----+-----+-----+-----+-----+----- hnical' \.1 16.71 16.0\ 52.2\ 25.01 20.6 --------+--------+-----+-----+-----+-----+-----+----- Postgra- N \.\.1.1 31 1\ 4 duate abroad --------+-----+-----+-----+-----+-----+----- \ /. I ·\ . I 13.0 I 25.0 \ 3.7 --------+--------+-----+-----+-----+-----+-----+----- ALL IN 1 2S\ 301 251 231 41 107 \100.01 100.01100.01100.0\100.0\100.0\ 63 Table 4:Sa sample Results ------------------------------------------------- Production sector: manager Food IWOOd IT~~:-IMetal ALL -----------------+-----+-----+-----+-----+----- Highest complet- ed level of educati- on t :. --;..-----+-------- Primary N 2 1 3 --------+-----+-----+-----+-----+----- 'I; 1.116.7110.01.1 7.0 --------+--------+-----+-----+-----+-----+----- Seconda- N I 31 51 4\ 11 13 ry --------+-----+-----+-----+-----+----- \ I 23.1\ 41.71 40.01 12.51 30.2 --------+--------+-----+-----+-----+-----+----- Vocatio- N 1 21 11 .1 ·I 3 nal --------+-----+-----+-----+-----+----- \ I 15.41 8.31 ·I . 1 7.0 --------+--------+-----+-----+-----+-----+----- Uni vers- N I 11 .I . I · 1 1 ity non- -------;..+-----+-----+-----+-----+----- technic- \ al I I I I I 7.7... 2.3 --------+--------+-----+-----+-----+-----+----- Univers- N 61 41 5\ 6\ 21 ity/tec- --------+-----+-----+-----+-----+----- hnical \ I 46.21 33.3\ 50.01 75.01 48.8 --------+--------+-----+-----+-----+-----+----- Postgra- N I 1\ .\ .\ 1\ 2 duate abroad --------+-----+-----+-----+-----+----- \ \ 7. 71 .I · 1 12. 51 4. 7 --------+--------+-----+-----+-----+-----+----- ALL N \ 13/ 12/ 10/ 81 43 --------+-----+-----+-----+-----+----- \ 1100.0\100.0\100.01100.01100.0 64 Table 4:5b ------------------------------------------------------- Production Employment intervals manager 1 - 5/ ;0- /2;5- 17~0~ 1501 + ALL -----------------+-----+-----+-----+-----+-----+----- Highest complet- ed level of educati- on --------+-------- Primary N 1 1 1 3 --------+-----+-----+-----+-----+-----+----- \ 1 so. a 1 14.31 11.11 . 1 . \ 7.0 --------+--------+-----+-----+-----+-----+-----+----- Seconda- N i l / 3\ 31 61 .1 13 ry --------+-----+-----+-----+-----+-----+----- \ 150.01 42.9133. 3128.6\.130.2 --------+--------+-----+-----+-----+-----+-----+----- Vocatio- N 1.1 21 .1 11 .1 3 nal --------+-----+-----+-----+-----+-----+----- \ 1·128.61·1 4.8\ .1 7.0 --------+--------+-----+-----+-----+-----+-----+----- Uni vers- N I · \ · 1 11 . 1 ·I 1 ity non- --------+-----+-----+-----+-----+-----+----- technic- \ al I I I 11.1 I . I . I 2.3 · · --------+--------+-----+-----+-----+-----+-----+----- Univers- N 1.1.1 4/ 13/ 41 21 ity/tec- hnical --------+-----+-----+-----+-----+-----+----- \ 1.1.1 44.41 61.91100.01 48.8 --------+--------+-----+-----+-----+-----+-----+----- Postgra- N /.1 11 .1 11 .1 2 duate abroad --------+-----+-----+-----+-----+-----+----- \ 1.1 14.31 . / 4.81 .1 4.7 --------+--------+-----+-----+-----+-----+-----+----- ALL N 1 21 71 91 21/ 41 43 --------+-----+-----+-----+-----+-----+----- , 1100.01100.01100.01100.01100.01100.0 65 S. THE LABOUR FORCE The number of people employed in our firms was practically the same as last year, showing that the slight economic recovery had not as yet had much impact on employment levels (Tables S:la-b). The number of casual workers was still very high (particularly in metal), but there was a marked shift from casual to permanent employment, probably a reflection of the relaxation of labour laws in the country, which now allow employers to layoff workers more easily than was the case before. The relaxation now makes it possible for firms to employ workers on the more preferred permanent terms, without loss of their ability to fire them if the need arises. Part-time work is uncommon, except in some large-scale food-producing firms. The rate of turnover of the labour force remains low: It is mainly in the textile sector that it has gone up, which is to be expected, since the sector has declined. Tables 5:2a-b give information about the structure of the labour force. We note that men dominate in the technical areas such as engineering (an average of 6.8 male engineers vs 0.1 female engineers). The firms employ few physical scientists, but they are almost as often women as men. Accountants and technicians are predominantly male, and the same holds true for foremen and supervisors. Manual labour is dominated by men. In other areas the information is very similar to that obtained from last year's interviews, so the reader is referred to last year's report for further discussion. 66 Table 5:1a --------------------------------------------------------------------- Sector: Food Wood Textile Metal ALL -----------------+---------+---------+---------+---------+--------- Total N 1 541 581 521 541 218 workers --------+---------+---------+---------+---------+--------- nr 1 482.71 192.91 626.91 734.71 551.1 --------+--------+---------+---------+---------+---------+--------- Full- N I 531 571 52/ 52/ 214 time --------+---------+---------+---------+---------+--------- (perman- nr ent) I 86.21 125.91 522.41 420.41 297.6 --------+--------+---------+---------+---------+---------+--------- Full- N 1 491 57/ 47/ 511 204 time --------+---------+---------+---------+---------+--------- (casual) nr / 13.9/ 53.21 104.71 336.71 161.5 --------+--------+---------+---------+---------+---------+--------- Part- N / 361 431 401 431 162 time --------+---------+---------+---------+---------+--------- nr 1 574.21 21.21 8.SI 0.11 147.1 --------+--------+---------+---------+---------+---------+--------- How many N \ 531 56/ SO/ 51/ 210 workers --------+---------+---------+---------+---------+--------- relativ- nr es of the owner? 0.6 0.6 1.6 0.4 0.7 --------+--------+---------+---------+---------+---------+--------- How many N 1 401 331 411 30/ 144 months --------+---------+---------+---------+---------+--------- month I 4. 61 3.0 1 3. 5/ 5 · 21 4.4 --------+--------+---------+---------+---------+---------+--------- No. N 1 38/ 291 40\ 29/ 136 Addtnl Full- --------+---------+---------+---------+---------+--------- nr time during peak season: 539.9 3.4 5.8 20.9 139.2 (CONT~NUEO) 67 ---------------------------".."----------------------------------------- Sector: --------------------------------------- Food Wood Textile Metal ALL -----------------+---------+---------+---------+---------+--------- No. N 1 341 2S1 35/ 251 122 Addtnl Part- --------+---------+---------+---------+---------+--------- nr time during peak season: 4.9 1.3 4.0 0.2 2.1 --------+--------+---------+---------+---------+---------+--------- No of N I 541 581 521 521 216 permane- --------+---------+---------+---------+---------+--------- nt nr employe- es hired 7.1 17.2 20.0 31.2 19.7 --------+--------+---------+---------+---------+---------+--------- No N 54/ 52/ 215 permane- --------+---------+---------+---------+---------+--------- nt nr workers fired or laid off 0.9 1.2 33.2 2.1 8.0 --------+--------+---------+---------+---------+---------+--------- Severan- N I 411 48/ 187 ee paid --------+---------+---------+---------+---------+--------- in total Ksh to these workers 36371.1 8431.3 846238.0 17444.8 204382.6 --------+--------+---------+---------+---------+---------+--------- No N 54/ 581 216 permane- --------+---------+---------+---------+---------+--------- nt nr workers quited or abscond- ed 0.3 2.3 18.2 2.3 5.0 (CONTINUED) 68 ------------------------~-------------------------------------------- Sector: --------------------------------------- ALL Metal Food Wood Textile -----------------+---------+---------+---------+---------+--------- No of N 1 541 58! 521 52/ 216 workers --------+---------+---------+---------+---------+--------- retired nr I o.a! 5.11 o.al 11.2/ 5.1 --------+--------+---------+---------+---------+---------+--------- No N ! 54/ sal 521 521 216 permnnt --------+---------+---------+---------+---------+--------- workers nr left because illness 0.3 0.1 2.0 0.5 0.7 --------+--------+---------+---------+---------+---------+--------- No of N 1 541 571 521 531 216 workers --------+---------+---------+---------+---------+--------- died nr / 0.31 o.SI 4.51 1.11 1.5 69 .' Table 5:1b --------------------------------------------------------------------- Employment intervals ------------------------------------------------- 1 - 5 6 - 20 21 - 75 /76 - 500 501 + -----------------+---------+---------+---------+---------+--------- Total N 1 561 55/ 561 43/ 8 workers --------+---------+---------+---------+---------+--------- nr 1 3.41 9.21 33.6/ 232.41 1386.5 --------+--------+---------+---------+---------+---------+--------- Full- N 53/ 54/ 561 431 S time --------+---------+---------+---------+---------+--------- (perman- nr ent) , 2.31 6.0/ 27.6/ 170.61 705.3 --------+--------+---------+---------+---------+---------+--------- Full- N 1 51/ 51/ 52/ 421 8 time --------+---------+---------+---------+---------+--------- (casual) nr I 1.11 3.9/ 13.SI 61.71 370.9 --------+--------+---------+---------+---------+---------+--------- Part- N 1 451 361 42/ 33/ 6 time --------+---------+---------+---------+---------+--------- nr / 0.2/ 0.01 1.4/ 0.91 358.4 --------+--------+---------+---------+---------+---------+--------- How many N / 531 551 541 401 8 workers --------+---------+---------+---------+---------+--------- relativ- nr es of the owner? 0.7 1.4 0.5 1.5 0.2 --------+--------+---------+---------+---------+---------+--------- How many N 1 441 421 291 241 5 months --------+---------+---------+---------+---------+--------- month I 3.11 2.61 3.6/ 4·°1 5.9 --------+--------+---------+---------+---------+---------+--------- No. N 1 391 421 281 231 4 Addtnl Full- --------+---------+---------+---------+---------+--------- nr ti.me during peak season: 2.5 1.6 4.3 10.9 322.6 (CONTINUED) 70 --------------------------------------------------------------------- Employment intervals 1 - 5 6 - 20 21 - 75 176 - 500 Sal + -----------------+---------+---------+---------+---------+--------- No of N I 56 1 54l 56 1 421 8 workers --------+---------+---------+---------+---------+--------- retired nr I 0.01 0.01 0.21 2.01 12.7 --------+--------+---------+---------+---------+---------+--------- No N I 561 541 561 42/ 8 permnnt --------+---------+---------+---------+---------+--------- workers nr left because illness 0.0 0.1 0.1 0.9 1.3 --------+--------+---------+---------+---------+---------+--------- No of N I 561 541 561 421 8 workers --------+---------+---------+---------+---------+--------- died nr / 0.11 0.21 0.21 1.3/ 3.3 (CONTINUED) 72 --------------------------------------------------------------------- Employment intervals ------------------------------------------------- 501 + 1 - 5 6 - 20 21 - 75 176 - 500 -----------------+---------+---------+---------+---------+--------- No. N 251 211 3 Addtnl Part- --------+---------+---------+---------+---------+--------- nr time during peak season: 0.9 0.5 3.6 5.4 --------+--------+---------+---------+---------+---------+--------- 2.0 . t No of N I 561 541 561 421 8 permane- --------+---------+---------+---------+---------+--------- nt nr employe- es hired 0.4 1.5 3.5 16.9 43.1 --------+--------+---------+---------+---------+---------+--------- No N I 561 541 561 42/ 7 permane- --------+---------+---------+---------+---------+--------- nt nr workers fired or laid off 0.2 0.8 1.8 13.7 14.3 --------+--------+---------+---------+---------+---------+--------- Sever an- N 1 501 501 441 361 7 ce paid --------+---------+---------+---------+---------+--------- in total Ksh to these workers 2461.5 2053.2 48890.9 313456.8 342965.4 --------+--------+---------+---------+---------+---------+--------- No N I 561 541 561 421 8 permane- --------+---------+---------+---------+---------+--------- nt nr workers quited or abscond- ed 0.5 0.8 0.5 2.0 11.7 (CONTINUED) 71 ---------------------------- ALL -----------------+--------- Total N I 218 workers --------+--------- nr I 551.1 --------+--------+--------- Full- N I 214 time --------+--------- (perman- nr ent) I 297.6 --------+--------+--------- Full- N 204 time --------+--------- (casual) nr I 161.5 --------+--------+--------- Part- N I 162 time --------+--------- nr I 147.1 --------+--------+--------- How many N 210 workers --------+--------- relativ- nr es of the owner? 0.7 --------+--------+--------- How many N I 144 months --------+--------- month I 4.4 --------+--------+--------- No. N I 136 Addtnl Full- --------+--------- nr time during peak season: 139.2 (CONTINUED) 73 ----------------------------- I ALL -----------------+--------- No. N I 122 Addtnl Part- --------+--------- nr time during peak season: 2.1 --------+--------+--------- No of N 216 permane- nt --------+--------- nr employe- es hired 19.7 --------+--------+--------- No N 215 permane- --------+--------- nt nr workers fired or laid off 8.0 --------+--------+--------- Severan- N I 187 ce paid --------+--------- in total Ksh to these workers 204382.6 --------+--------+--------- No N I 216 permane- --------+--------- nt nr workers quited or abscond- ed s.o --------+--------+--------- No of N I 216 workers --------+--------- retired nr I 5.1 (CONTINUED) 74 ALL -----------------+--------- No N 216 permnnt --------+--------- workers nr left because illness 0.7 --------+--------+--------- No of N I 216 workers --------+--------- died nr I 1.5 75 Table 5:2a -------------------------------------- INumber of workers \ Sector: \ I 1-- -------- ---------------- -------- -I I 1 Food I Wood I Textile / Metal I ALL 1 ----------- ----+--- -----+---------+---------+- - -----+-------- \ Employed IN I 541 581 521 541 2181 IManager-I--------+---------+- -------+---------+---------+-- ------1 Is. MEN Inr / 4.6 I 4.1I 2 .5 I 11 . 5 I 6.5I 1--------+--------+---------+---------+-- - ----+---------+--- -- --I IProprie-IN I 541 58/ 521 54/ 2181 Itors. 1--------+---------+-- ------+---------+---------+---------1 IMEN / nr I 1. 4 I 1. 1 1 0. 9I 1. 2 / 1. 2 ! i--------+--------+---------+---------+---------+------- -+---------1 IEnginee-IN 1 541 581 52\ 541 2181 Irs. MEN \ -------+-------- +-- ------+---------+--- ---- +----- ---I I Inr I 0.91 0.81 1.11 17.71 6.81 1--------+--------+---------+---------+---------+ ------ -+---- ---- I IPhysical IN I 541 581 521 54/ 2181 Iscienti-/--------+---------+------- -+---------+---------+- ------ I Ists. MENlnr I 0.9\ 0.2\ 0.01 0.1\ 0.31 1--------+--------+---------+---------+---------+------- -+---------1 IAcctnts, IN 1 54\ 58\ 52\ 541 218/ lecon., 1--------+---------+---------+---------+- - -----+-------- I Iprogrs , Inr 1 I / \ I I Imath. 1 I 1 I I 1 1 IMEN I 1 1.01 2.2/ 6.21 2.21 2.61 \--------+----- --+---------+---------+---------+---------+---------/ \TECHM37.\N \ 541 58\ 521 541 218\ ITechnic-I--------+---------+---------+---------+---------+---------1 lians. Inr \ 1 \ / \ \ IMEN I \ 2.4\ 3.2\ 12.21 6.11 5.8\ 1--------+--------+---------+-- ------+---------+---------+-------- I ISkilled IN I 541 58\ 521 541 218\ IOffice. \--------+---------+---------+---------+--- - ---+---------1 IMEN \nr I 1.21 1.01 22.71 39.81 19.01 1-- -----+--- ----+- -------+---------+---------+---------+---------1 IUnskill-IN I 541 58\ 521 541 2181 led 1--------+---------+-- ------+---------+---------+---------1 \Oftice. Inr I \ I 1 I \ IMEN \ 1 0.6\ 1.31 0.7\ 0.21 0.61 (CONTINUED) 76 .' 1Number of workers 1 Sector: 1 1 1------ --- -------- - ----- -------- - I ! 1 Food 1 Wood 1 Textile I Metal ! Al..I,. 1- ------ - - - --+-- - ----+------- -+---------+---------+--- --- -I ISpecial- IN 1 541 581 521 54! 218 i lized 1--------+-------- +-- - ----+--- -----+-------- +--------- i ISales. Inr I I I 1 1MEN I I 1.3I 0.81 0.8i 4.8 1 2.31 1--------+- ------+----- - -+---------+ --------+- - -----+--- -----1 ISales IN I 541 581 521 541 218/ IAssista-I-- --- -+------ --+---- - - +---------+---- - --~ --------1 Ints. MENlnr 1 0.41 1.31 1.21 0.31 0.71 1- - - --+--------+-- ------+---------+ - --- --+ - - ----+---------1 IService IN 1 541 581 521 54 I 218/ iWorkers·1 - --- -+---------+ --------+- - -----+- -------+-- ------i 1 MEN 1 nr I 9.81 21. 0 1 9.8 1 2.9I 9 .3 1 1- ----- + -------+------- -+--- -----+-- - ----+ - - ----+---------! iForemen IN I 541 581 52/ 541 218 : land 1--------+---------+-- - ----+---------+---------+- - - - I ISupervi Inr I I 1 1 I Isors. I I I 1 I 1 IMEN I I 5.41 4.71 20.31 22.71 14.31 1--------+--------+---------+---------+---------+--- - ---+------ --I IElectri- IN 1 54/ 58/ 521 541 2181 Icians, 1--------+---------+---------+---------+--- ----+------- -I 1Plumber- Inr I 1 1 I 1s, I I I 1 I IWelders·1 I I 1 1 IMEN / 5.61 0.41 1.61 29.61 12.41 1- - --------+- - --- -I ----+--------+-------~-+---------~--- -----+ iMachine IN I 541 581 521 541 2181 IMainten-i--------+---------+---------+---------+--- - - -+-------- i lance andlnr I 1 I 1 1 I Irepair. I I I I I I 1 IMEN 1 I 1. 7 I 7.7 1 27 . 4 I 46.71 23.71 (CONTINUED) 77 - - - - - - - - - - - - - - - - - - - - - - - - - -.- - - - - - - - - - - - - - - - - - - - - - - -.- - - - - - - - - - - - - -- jNumber of workers I I Sector: I I ------ ------------------ ------ -----1 I 1 Food I Wood 1 Textile I Metal 1 ALL I 1----------- -----+---------+--- -----+--- -----+---------+------ -- I IMachine IN 1 541 581 521 5~ 1 2181 lop- 1--------+-- ------+---------T---------+---------~---------I lasemble Inr I I I 1 1 1 Irs, I 1 I 1 1 1 I Idrivers I I I I I I I Iequip. I 1 I I I I I IMEN I I 10 . 0 1 12 . 2 I 318 . 3 1 4 9 .21 85 .4 I 1--------+-- -----+---------+---------+---------+-------- +---------1 ILaborers IN I 541 581 521 54! 2181 !helpers-!--------+---------+---------+---------+---------+---------1 Icasuals-Inr I I I I I I I unsk - I ! 1 I I I I !workers. I I ! 1 I I 1 1M 1 I 160.81 68.51 31.31 46.01 79.01 1--------+--------+---------+---------+---------+---------+-- ------1 IIndustry IN 1 541 581 521 541 2181 ISpecific! -------+---------+----- ---+----- ---+---------+---------1 /1 Inr I I 1 I I I I (Skille- I I I I I 1 I Id). MEN I I 2 .4I 8. 1 I 19 . 3 I 13 0 . 7 I 51. 9 1 1--------+--------+---------+---------+---------+---------+---------1 IIndust.rylN I 541 581 521 541 2181 ISpecificl--------+--------~+---------+---------+---------+---------1 12. MEN Inr I 0.21 9.01 2.01 3.11 3.11 1--------+--------+---------+---------+---------+---------+--------- I I Industry IN I 541 581 521 541 2181 ISpecificl--------+---------+---------+---------+----- ---+-- ------1 13. MEN Inr I 0.01 1.11 0.01 0.01 0.2/ 1--------+--------+---------+---------+---------+---------+---------1 !IndustrylN I 541 581 521 54/ 2181 ISpecific/--------+---------+---------+---------+---- ----+---------1 14. MEN Inr I 0.01 1.61 0.01 0.01 0.31 1--------+------ -+---- ----+---------+---------+---------+-------- I ITOTAL IN I 541 581 521 541 2181 1MEN 1--------+---------+---------+---------+------- -+---------1 I Inr 1 213.51 151.61 481.91 434.7/ 334.31 (CONTINUED) 78 INumber of workers I Sector: 1 I 1---- ----- ---I ----- ------ i I Food Wood I Textile I Metal I ALL 1_____________ --+-- ------+-- ------+----- ---+ ---- --T--- -- I IEmployed IN 541 581 521 541 21SI, IManager-I------ +--- ----+ --------+------ --+-------- +---- ---I Is. WOMEN 1nr 0 .2I 0 ·1 I 0.01 2.3 I 0.91 1- ---- +---- ---+ ----+- ------ +--- ----+ -- -----+ ----- --: IProprie-IN 541 58/ 521 541 21S1 Itors. 1---- ---+------ --+-- ------+---- ---+-- --- -+- ----- I 1WOMEN Inr I 0.11 0.11 0.21 0.01 0.11 1------ -+ ---- -+----- ---+---------+-- ---- +---- ----+--------- 1 IEnginee-IN 1 541 5s1 52/ 541 21S1 Irs. 1----- --+- -------+---------+---- ----+---- -- -+-- - - - - - I IWOMEN Inr I 0.01 0.01 0.01 0.3/ 0.11 1--- ---+ ----- +--- ----+---------+----- ---+-- ---- +-- - ----I I Physical IN 541 581 521 541 2181 IScienti-l- +--- -- --+-- ------+-- +---- ---+- ---- --I Ists . Inr I I 1 1 I IWOMEN I 0.6 I 0.0 I 0. 0 I 0. a1 0.2 I I -+--------+---- ---+- ------+- ------+---------+ -I IAcctnts, IN 541 sal 521 541 21al lecon .· 1--- -+------- -+--- ----+---- ----+- ------+- ------1 Iprogrs , Inr I I I I I Imaths. I I I I I I I WOMEN I 0 . aI 0.4 I 0 ·1 I a. 0 I a.1I 1- -----+-- -----+---------+-- ------+-- -----+---------+- -----1 ITECHW37. IN 541 sal 521 541 21al ITechnic-I---- ---+-------- +---------+---------+------ --+---------1 lians. Inr I I I I I I IWOMEN 1 I 0.01 0.01 0.01 o.al 0.31 1--- ----+--------+--- -----+---------+------ --+------ --+-------- I ISkilled IN I 541 581 521 541 2181 IOffice. 1-- -----+ --------+-- ------+-- ----+--- ----+---- -- -I IWOMEN Inr I 2.21 1.31 2.21 9.71 4.71 I ------+--------+-- ------+---------+------ --+----- --+--------1 IUnskill-IN 541 sal 521 541 21al led 1------ -+---- ----+---------+------ --+-------- + --------1 IOffice. Inr 1 1 I I I I WOMEN I 1. 8 1 0.1 I 0. 3 1 1. 2 I 1. 0I (CONTINUED) 79 j"Number of workers 1 Sector: I 1--- ------ ---------------- -- --- ----, I I Food I Wood I Textile I Metal I ALL 1---- ------------+---------+---------+- -------+------ --+--- - ---I ISpecial-IN I 541 581 521 541 2181 lized 1--------+---------+---------+- ---- --+----- ---+---------/ ISales. Inr I 1 I 1 1 1 1WOMEN 1 I 0 . ]. I 0.11 0. 0 / 1.2I 0.5 I 1--------+---- ---+-- ------+---- ----+- ---- --+--- -----+-------- I ISales IN I 541 581 521 541 2181 IAssista-I--------+---------+--- -----+---------+--- ---- +---------1 Ints. Inr 1 / I I I / IWOMEN I I 0.11 0.51 0.0/ 0.1/ 0.11 1--------+-- - ---+-- ---- -+---------+---------+---------+---------1 IService IN I 541 581 521 541 2181 IWorkers·I--- ----+---------+- -------+---------+---------+---------1 IWOMEN Inr 1 6.81 0.6/ 1.2/ 0.41 2.41 1--------+--------+------ --+- - -----+---------+----- ---+-- - ----I /Foremen IN I 541 581 521 541 2181 land I - -----+---------+---------+------- -+------ --+--- ---- I ISupervi- Inr I Isors. I I 1WOMEN I I 1. 4 I a. 0 I a.7 I 0. 0I 0. 5I 1--------+--------+---------+---------+---------+------- -+---------1 /Electri-IN I 541 581 521 541 2181 Icians, 1--------+---------+---------+---------+---------+---------1 IPlumber-lnr 1 1 1 I I I Is, I I I I 1 I I IWelders. I 1 I 1 I I I IWOMEN I I 0.01 0.01 0.01 0.01 0.01 !--------+--------+---------+---------+---------+---------+------ - I IMachine IN I 541 581 521 541 2181 IMainten-I--------+---------+---------+---------+---------+------ __ I 1ance and Inr I 1 I 1 / 1 Irepair. I I 1 I I 1 I IWOMEN I I 0.01 0.01 o.o! 0.01 0.01 ------------------ -------------~---------------------------- - (CONTINUED) 80 --- -~ --- ------- --- ---- - I Number of workers I Sector: I 1- --- -------- ------- - - -- - ---- - I I Food I Wood 1 Textile I Metal I ~L 1__ - -------- ---+---------+---- ----+--- -----+---------+------- -/ !Machine IN 54 i 581 521 541 21S1 lop- I--------+---------T--- -----+- -------+ ----+------ --I I asembl, 1nr I I I I Idrivers I I 1 I I Iequip. 1 I I I I IWOMEN I I 0.11 0.01 77.51 0.01 15.41 1--- ----+--------+---- ----+---- ----+ --------+---------+-------- I ILaborers!N I 54 I 58/ 521 54/ 218 I lhelpers-I- --- --+---- - --+--- -----+----- ---+- --+------ - i I casuals-I nr I I I lunsk- 1 I 1 I ! workers. I 1 I I I Iw I 252.5/ 37.8/ 9.91 2.01 79.81 1_-------+--- ----+- -- ----+------- -+-- ------+---------+- - --- -I I IndustrylN 54 I 581 521 54 I 218 I ISpecificl--------+---------+----- ---+-- +--- - ---+---------1 11 Inr I I I I I I I (Sk i 11 e - I I I I I I I Idl. I I I I ! I I !WOMEN I I 3.1I 0. 0I 1. 0 I 0. 0! 1. 1 ! 1--------+--------+---------+---------+-- ------+--- -----+ --------1 I Industry!N I 541 581 521 541 2181 ISpecificl--------+---------+------ --+----- ---+-- ------+---------1 12. WOMENlnr 1 0.01 0.01 1.01 0.01 0.21 1--------+---- - -+---- ----+---------+---------+---------+---- - --I I Industry!N I 541 581 521 54 I 2181 ISpecificl--------+---------+---------+---------+---------+---------1 13. WOMENlnr I 0.01 0.01 0.01 0.01 0.01 1--------+--------+- -------+---------+---------+------ - +--- - ---I I IndustrylN I 541 581 521 54 I 2181 ISpecificl--------+---------+---------+---------+---------+----- - -I !4. WOMENlnr I 0.01 0.01 0.01 0.01 0.01 1- - ----+--------+---------+---------+---------+-- ------+- ------1 ITOTAL IN 1 541 5s1 521 541 2181 IWOMEN 1--------+---------+---------+---------+---------+--- -----1 I. Inr I 269.01 41.11 94.11 18.11 107.41 81 Table 5:2b --------------~ - --------------- I I Employrr",nt intervals I 1---- ---- ----- - -- -- - ----- ---- ------- - --I I I 1 - 5 1 6 - 20 1 21 - 75 1 76 - 500 I 501 + I 1---- -------+---------+----- ---.---------+------ --+---- ----I !EmployedlN I 561 5::, 561 431 81 IManager 1--------+---------+----- -- +- --- ---+- - -- --+---------1 Is. MEN Inr I 0.11 0.11 0.51 6.21 14.51 1- ------+--------+---------+---------+- -------+---------+------- -I IProprie-IN I 561 551 561 431 81 Itors. 1- ---- -+---------+-------- +- - -- --+-- --- --+----- ---I IMEN Inr I 0.51 :.01 1.31 1.31 1.51 I ---- --+--------+ ---- ---+--- -- --+- -------+-- ------+---------1 IEnginee-IN 1 561 551 561 431 81 Irs. MEN 1------ -+---------+---------+---- -- -+---- -- -+---------1 I Inr I 0.01 0.01 0.11 6.11 15.71 1--------+------- +---------+---------+-- ------+---------+-------- I IPhysical IN 1 561 551 561 431 81 Iscienti-I--------+---------+---------+---------+---------+------ - I Iscs. MENlnr I 0.01 0.01 0.01 0.31 0.81 1--------+--------+---------+- -------+---------+---------+--- -- --I IAcctnts,IN I 561 551 561 431 81 lecon., 1-- -----+---------+---------+---------+--- -----+------ --I Iprogrs, !nr I Imath. I I IMEN I I 0.0 0.01 0.11 1.51 6.51 I--------+--------+--------~+---------+---------+---------+---------1 ITECHM37·IN I 5£1 551 561 431 81 ITechnic-!--------+---------+---------+---------+---------+---------1 Iians . Inr I I I I I I IMEN I I 0.01 0.01 1.01 14.11 8.31 I -------+--------+---------+---------+---------+---------+--- -----1 ISkilled IN I 561 551 561 431. 81 IOffice. 1--------+---------+---------+---------+---------+--- - -- I IMEN Inr 1 0.11 0.01 0.31 3.41 50.71 1- ------+---- ---+---------+---------+---------+---------+--------- I IUnskill-IN I 561 551 561 431 81 led I -------+---------+---------+---------+---------+---------I IOffice. Inr I I 1 I I 1 IMEN I I 0. 0 I 0. 0 I 0. 3 I 1. 6 I 0.71 (CONTINUED) 82 ----------~--- ----------------- -------- .' ! Employment intervals 1 ________ - --I 1- ----------- -- -- -- ------ -- - I 5 6 - 20 1 - I 21 - 75 !76 500 i 501... 1 1 i- -- --------- ------+- ----- -+---------+- - -- -+ --- -- -I ISpecial-IN 561 551 561 431 81 lized !-- --+-------- +---------+ --------+-- ---- -+ ------ -I I Sales. I nr I I I I I I MEN I 0.01 0.21 0.41 1.71 5.41 1--------+- -- ---+ --------+---------+---------+---- -- -+ - 1 ISales IN 561 551 561 431 81 !Assista-I---- ---+- -- -+---------+---------+-- -- ---+--- -- --I Ints. MENlnr 0.01 0.11 0.21 2.11 0.6i 1--------+--------+- -- -+---------+---------+----- ---+- -- -- -I IService IN I 561 551 561 431 81 IWorkers. 1----- --+---------+--- -- -+-- ----- +- -------+--------- I 1MEN I nr 1 0.0I 0.1 1 0.4 1 8.4 I 2 1. :;. I 1--------+-- -----+---------+- -- ----+---------+---------+---- ----I I Foremen IN I 561 551 561 431 8 I land I ----- -+-- -----+----- ---+- -+--- -- --+------- -I I Supervi I nr 1 I 1 1 Isors. I I 1 I 1 I MEN 1 0.0 1 1. 8 I 0.1I 34 . 3 8.9I 1 I -------+--------+---------+-- ---+---------+--- --+----- ---I IElectri-IN I 561 551 561 431 81 Icians, 1--- -+---------+---------+---------+------ --+-- I 1 Plumber I nr 1 I I I 1 I 1s, 1 1 1 I 1 1 I I Welders. I I I 1 I 1 1 I MEN I 1 0.3 I 0.7I 2 .7 I 9.1 1 28 . 2 1 1--------+--------+---------+---------+---------+------ --+-- ------1 IMachine IN I 561 551 561 431 81 IMainten-!----- --+---------+---------+---------+-- ------+-- I I ance and 1nr 1 1 I I ! I I repair. 1 1 I I 1 1 I I MEN I I 0. 0I 0 ·3 I 2 I 0. 8 ·0 I 61.21 (CONTINUED) 83 ----------------- -- --~----- ------------- ---------------- i I Employment interv~ls 1 1 1-- ------------------- --------------- - --------1 1 1 1 - 5 I 6 - 20 I 21 - 75 176 500 I 501... I 1 ________ ~-------+-- - ----+--- -----~----- --~+---------T------- -) I IMachine IN 561 551 56\ 43\ 8i lop- 1----- --+---------+---------+---------~---------~--- -----1 lasemble-Inr I I i i I Irs, I I I I ! Idrivers \ I I I I Iequip. I I I 1 \ IMEN I 0.31 0.81 3.31 35.21 216.4\ 1--------+--------+---------+---------+---------+ --------+---------1 ILaborers IN 1 561 551 56\ 431 81 Ihelpers-I--------+---------+---------+---------+---------+- - -----1 Icasuals-Inr \ 1 I i I I \ unsk- 1 I \ I I I 1 Iworkers. I I I I \ I I 1M \ I 0.5\ 2.51 12.21 62.21 180.81 1------- +--------+---------+---------+---------+---------+- ------- I I Industry IN I 561 551 561 431 81 ISpecificl--------+---------+---------+---------+---------+---------1 11 Inr 1 I I I I i I (Skille-I I I 1 I I ! Id). MEN \ \ 0.9\ 2.01 3.71 9.S\ 136.0\ \--- ----+--------+---------+---------+---------+---------+---------\ !IndustrylN I 561 55\ 56\ 43\ 81 ISpecificl--------+---------+---------+----- - -+---------+---------1 I 2. MEN Inr I 0. 01 0. 3 1 1. 0 1 8 .3 I 3. 71 \--------+--------+---------+---------+---------+-------- +----- ---I I Industry IN 1 561 551 561 431 al ISpecificl--------+---------+---------+---------+---------+---------1 13. MEN Inr I 0.01 0.21 0.11 o.al 0.01 1--------+--------+---------+---------+---------+---------+---------1 I IndustrylN I 561 551 561 43: al ISpecificl- ------+---------+---------+---------+---------+---------I 14. MEN Inr I 0.01 0.01 0.01 1.51 0.01 I ------ + ---- --+---------+---------+------ --+---------+---------1 ITOTAL IN I 561 551 561 431 81 IMEN 1---- ---+-- ---- -+---------+---------+---------+---- ----I I Inr 1 2.71 a.81 29.71 195.61 807.81 (CONTINUED) 84 ------- -------------~-------------- I Employment intervals I - ------- ------------------ - ---- ----.- ---- I I I I 1 - 5 I 6 - 20 I 22. - 75 176 - 500 I 501.,. I -- --------- ---+---------+---- ----+- -------+---------+--- --- - I IEmployed IN I 561 551 561 431 81 IManager-I--------+---- ----+--- -----+--- -----+---------+----- ---I Is. WOMENlnr I 0.0\ 0.01 0.0\ 0.51 2.3! 1 - -----+-- -----+--- -----+-------- +-- ------+------- -+- ------- I IProprie-IN I 561 551 56/ 431 81 Itor~. 1--------+---------+----- ---+---- ----+---------+------ - I IWOMEN Inr 1 0 .3 I 0.2 ! 0. 01 0.0I 0.0I 1--- - --+--------+-- ------+---- ----+- -------+------ - +--- --- I /Enginee- IN / 561 551 561 431 81 irs. 1------ -+-- --- - +- -------+---------+--- -----+ ---- - -I 1WOMEN 1nr 1 0. 01 0. 01 0.0I 0.0 I 0.3I 1 --- ---+ -------+------ --+---------+----- - -+-- ------+---------1 1Physical IN 1 561 551 561 431 81 IScienti-I------- +--- -----+--- - ---+---------+- ---- --+- - - - I Ists . Inr I 1 I IWOMEN I 0.0I 0.0I 0. 0 I 0.0i 0.4 I I -------+-- --+---------+----- - -+-- ---- -+---------+------ - I IAcctnts , IN 561 551 561 431 81 lecon., 1-- -----+---------+ ------ -+---- ----+---------+- ------ I 1progrs , Inr I Imaths. I 1 1WOMEN I I 0. 0 I 0. 0 I 0. 1 I 0.2 I 0.2 I 1--------+- ------+---------+---------+--- -----+------- -+---------1 ITECHW37·IN I 561 551 561 431 81 ITechnic-I--------+---------+---------+----- ---+---------+---------1 I ians. I nr I I I I 1 I 1WOMEN I 1 0.01 0.01 0.01 1.51 0.01 I - -----+--------+---- ----+---------+---------+------- -+-- - ----I ISkilled IN I 561 551 561 431 81 IOffice. 1--------+---------+------- -+---- ----+-- ------+------ --I IWOMEN Inr I 0.11 0.01 1.11 4.21 10.41 1- ------+------ -+---------+------- -+---------+---------+- - ---- I IUnskill IN I 561 551 561 431 81 led - ------+---------+------ --+---------+------ - +---------1 IOffice. nr I 1 I I I I IWOMEN I 0.01 0.11 0.11 o.BI 2.31 (CONTINUED) 85 -----------------------~---- 1 " 1 Employment intervals I" \---------- ------- -------------------------- -- 1 I I 1 - 5 I 6 - 20 I 21 - 75 176 - 500 I 501 + 1-----------------+---------+---------+---------+------ --+---------1 ISpecial IN I 561 551 561 431 81 lized 1--------+---------+--- -----+--- -----+---------+--- - -- I 1Sales. 1nr I 1 1 1 I 1 1WOMEN I 1 0.0 I 0.0I 0 . 0I 0. 2 I 1. 1 I 1--------+--------+-- ------+---------+---------+---------+- -------1 ISales IN I 561 551 561 431 81 IAssista-1 -------+---------+---------+---------+---------+---------I I nt s . I nr I I 1 1 I 1 1WOMEN 1 1 0.01 0.11 0.01 0.41 0.11 1--------+--------+---------+---------+--- -----+-------- +--- ---- I ,. IService IN I 561 551 561 431 81 IWorkers. 1------- +---------+---------+---------+---------+----- ---I 1WOMEN Inr I 0.01 0.01 0.3/ 1.41 5.81 I -------+--------+---------+---------+---------+---------+---- ----I IForemen IN 1 561 551 561 431 81 land 1--------+---------+----- ---+---------+---------+-------- 1 /Supervi-!nr 1 I I 1 1 1 Isors. 1 / I I I / 1 1WOMEN I I 0.0 I 0. 0 I 0. 1 / 0 . 0/ 1. 4 I 1--------+--------+--- -----+---------+---------+---------+---------1 /Electri-IN 1 561 551 561 431 81 Icians, /--------+---------+---------+---------+------- -+---------1 I Plumber-I nr I 1 1s, I 1 I IWelders .1 I 1 IWOMEN I I 0. 0I 0. 01 0. 0 I 0. 0 I 0. 01 1--------+--------+---------+------- -+---------+---------+---------1 IMachine IN I 561 551 561 431 81 IMainten-!--------+---------+---------+---------+ --------+----- -- 1 lance andlnr I I I 1 I I I repair. 1 I , I , 1 , 1WOMEN , I 0.01 0.01 0.01 0.01 0.01 (CONTINUED) 86 ---------- ---~ - --- - -------- --- -~-- 551 561 +--- - ---+- 1 I I 1 I 1 0.01 0.01 (CONTINUED) 87 -------~----- --------- ----- I 1 ALL I 1--- ------- -----+---------1 IEmployed IN I 2181 IManager-I--------+---------/ Is. MEN inr I 6.51 1--------+--------+---------1 /Proprie-IN I 2181 I tors. / - - - - - - - - +- - - - - - - - - I 1MEN Inr I 1.2/ 1--- ----+--------+-------- I IEnginee-IN I 2181 Irs. MEN 1--------+-- ------1 I Inr I 6.sl 1--------+--------+---------1 I Physical IN I 2181 IScienti-I---- -- +---------1 Iscs. MENlnr I 0.31 1- ------+ -------+---------1 IAcctnts, IN I 2181 econ., 1- -- - -+------- -I progrs, Inr I I math. I I I IMEN I I 2.61 1- ------+--------+---------1 ITECHM37 ·IN I 2181 ITechnic-l- ------+---------1 I i ans . 1 nr I I IMEN I I 5.81 1--------+--------+---------1 ISkilled IN I 2181 IOffice. 1--------+---------1 IMEN Inr I 19.01 1--------+--------+---------1 IUnskill-IN / 2181 led 1--------+---------1 IOffice. Inr 1 I I MEN I I 0.61 1--------+--------+---------1 ISpecial-IN I 2181 lized 1--------+---------1 ISales. Inr I I IMEN \ I 2.3\ (CONTINUED) 88 -----~------------ -- - ---- I I ALL I I -- -------------+---------1 ISales IN I 2181 IAssista-I---- ---+ ---- i Incs. MENinr i 0.71 1--------+- ------+-- ---I IService IN I 2181 IWorkers. I -------+-- --I IMEN Inr I 9.31 1--------+----- --+------ --I IForemen IN I 2181 land 1-- +--- ---- I /supervi-Inr I Isora. I I IMEN I I 14.31 1--------+--------+---------1 IElectri IN I 2181 ICians, 1--------+---------1 IPlumber-I nr I I Is, I I I IWelders·1 I I IMEN I I 12 .4 I 1------ -+--------+---------1 IMachine IN I 2181 IMainten-I--------+---------1 lance andlnr I I Irepair. I I I IMEN' I I 23.71 1--------+--------+-- ------1 IMachine IN I 2181 lop- 1--------+------- -I Iasemble- Inr I 1 Irs, 1 I I Idrivers 1 I 1 I equip. 1 I I IMEN I I 85.41 (CONTINUED) 89 --------------------~-------- 1 1 ALL I 1-----------------+---- ----I ILaborers IN I 2181 Ihelpers-l--------+---- ----I Icasuals-lnr I lunsk- I I Iworkers. I I 1M I 1 79.01 1--------+------- +---------1 1Industry IN 1 2181 ISpecificl--------+--- -----1 11 Inr I I I (Skille- I 1 1 1d). MEN 1 1 51. 9 I 1--------+--------+---------1 1InduscrylN I 2181 ISpecificl------ -+---- ----I 12. MEN Inr I 3.11 1--------+--------+---------1 1IndustrylN 1 2181 ISpecificl--------+---------1 13. MEN Inr 1 0.21 1--------+--------+---------1 I IndustrylN I 2181 ISpecificl--------+---------! 14. MEN Inr 1 0.31 1--------+--------+---------1 ITOTAL IN I 2181 1MEN 1--------+---------1 1 1nr 1 334.3 1 1--------+--------+---------1 IEmployed IN I 2181 IManager-I--------+---------1 Is. WOMENlnr I 0.91 1--------+--------+---------1 IProprie-IN 1 2181 Itors. 1--------+---------1 1WOMEN Inr 1 0.11 (CONTINUED) 90 - ---~--- --------- --- -- -- I 1 ~L 1-- ---- ---------+------ --I IEnginee-IN 1 2181 Irs. 1--- ----+- - -----1 IWOMEN Inr I 0.11 1---- ---+---- -- +-------- 1 IPhysical IN 1 2181 Iscienti-I--------+--- - - -I Ists. Inr 1 I 1WOMEN 1 I 0 .2 1 1------ -+--------+----- ---I IAcctnts, IN I 2181 lecon., 1--------+---------1 Iprogrs. !nr I 1 Imaths. I I I 1WOMEN I 0.1! 1-- -----+----- --+--- ----I !TECHW37. IN I 2181 ITechnic-I--------+---------1 ! ians. Inr I I 1WOMEN ! I 0.31 1---- ---+--------+---------1 ISkilled IN I 2181 IOffice. 1------- +--- ---- I IWOMEN Inr 1 4 .7I 1-- -----+---- - -+---------1 IUns~ill-IN I 2181 led I ---- --+-- ------1 IOffice. Inr I I IWOMEN 1 I 1.01 1--------+------ -+---- ----I ISpecial-IN I 2181 !ized 1--------+---------1 ISales. Inr I 1 IWOMEN I I 0. 5 I 1 -------+--------+------ --I ISales IN I 2181 IAssista-!--------+---------1 Ints. Inr I ! 1WOMEN ! 1 0.11 (CONTINUED) 91 ---~--~--------------------- 1 i ALL I 1---------------- +---------1 IService IN I 2181 IWorkers. I - - - - - - - + - - - - - - - - - I 'WOMEN Inr I 2.41 1--------+--------+------- -I IForemen IN I 21BI land 1--------+-------- I ISupervi - I nr I I Isors. I I I IWOMEN I I 0.51 ,--------+--------+---------1 lElectri-IN / 2181 ,. I ci ans . I - -- --- -- +- - - - - - - - - I IPlumber-I nr I I I s. I I I IWelders. I I I IWOMEN I I 0.01 1--------+--------+---------1 IMachine IN I 21BI IMainten-I--------+---------1 lance andlnr I / , repair. , I I IWOMEN \ I 0.01 1--------+--------+---------1 IMachine IN I 21BI lop- ,1--------+---------1 Iasembl. Inr I I Idrivers I I I I equip. I I I IWOMEN I I 15.41 1--------+--------+---------1 1Laborers IN I 2181 \helpers-I--------+---------\ Icasuals-Inr \ 1 lunsk- I I I I workers. 1 I I IW 1 1 79.8 I (CONTINUED) 92 -- - - ------------------ I 1 ALL 1 1------- ------ --+- -- -- -I 1Industry IN 1 2181 ISpecificl-- -----+---- ----I 11 Inr I \ (Skille-I \ Id). I· I \ WOMEN 1 I 1. 1 I 1--------+--------+---------1 1Industry IN 1 218\ ISpecificl--------+---------1 12. WOMEN\nr I 0.21 1-- -----+--------+---------1 I IndustrylN 1 2181 ISpecific/--------+-- -- ---I 13. WOMEN/nr I 0.01 /--- ----+-- -- - +- ---- --I 1 IndustrylN 2181 1 ISpecificl--------+------ --I 14. WOMENlnr I 0.01 1-- -- --+--------+------ --I ITOTAL IN 1 2181 1WOMEN 1--------+---------1 1 Inr 1 107.41 93 6. EMPLOYEE TRAINING In the third round of interviews we had a module about the training activities of firms. We asked whether they had any training specialist or training staff. Only the very large firms had such personnel (Tables 6:1a-b), and only among the metal and textile firms; the wood and food firms reported none. The metal sector led with 39.2%, compared to 20.4% for textile firms. Metal firms also led by far in the proportion (54.5%) sending workers for training courses (Table 6:4a), followed by textile firms (16.9%). As noted above, metal firms were also the most export-oriented, which probably explains their stronger interest in increasing their competitiveness by training their employees. To the extent that smaller firms undertake training, it is mostly done by equipment suppliers or business partners (Tables 6:2a-b), but this type of training is primarily undertaken by the largest firms; in size classes up to 75 it is quite uncommon. In the sample 23 firms had started a training programme (Tables 6:3a), including one in the smallest category. We asked whether firms had sent workers to take courses or get training from technical institutes, universities, or industry associations. Many of those with more than 75 employees had done so, while training in the smaller firms was very limited (Tables 6:4a-b). In smaller firms it is the foreman who primarily do the training (Table 6:5a-b), though this form of training is even more common in larger firms as well. Joint programmes of training with other firms are unusual for both small and large firms (Tables 6:6a-b). Finally, we asked the firms which had not invested in formal train~ng why they had not done so (Table 6:7a-n). The answers were on a scale of 1 to 5, from "not at all important" to "very important". Cost is an important :onsideration for the smaller firms (Table 6:7b). There was some concern in all size categories for labour turnover (Tables 6:7c-d) and that other firms would hire newly trained. employees (Tables 6:7i-j), but those were not dominant reasons for not investing in training. Neither did the firms think that they lacked knowledge about training opportunities (Tables 6:7e-f). A more common argument was that the firm uses a mature technology, where further training is not required (Tables 6:7g-h). Quite a few also admitted that they were sceptical about the benefits of training (Tables 6:7m-n). This may of course be due to lack of information, but it could also reflect a view tha~ training is of low quality. On the basis of our data we cannot distinguish between the two 94 possibilities. There seem to be several explanations for low levels of .' training activity, the major ones being lack of perceived usefulness of '. training, and lack of funds. 95 Table 6:1a ------------------------------------------------- Sector: Food IWOOd IT~~:-IMetal ALL -----------------+-----+-----+-----+-----+----- Has training special- ists or staff: --------+-------- Yes /' 20.4 39.2 17.8 --------+--------+-----+-----+-----+-----+----- No I' 1100.0/100.01 79.61 60.81 82.2 --------+--------+-----+-----+-----+-----+----- ALL I' 1 · 0 1100.01100.01100.01100.0 100 Table 6:1b Employment intervals 12~5- 17:0~ 1501 + ALL 1 - 51 ;0- -----------------+-----+-----+-----+-----+-----+----- Has training special- ists or staff: --------+-------- Yes I' 48.9 17.8 --------+--------+-----+-----+-----+-----+-----+----- No I' 1100.01100.01100.01100.01 51.11 82.2 --------+--------+-----+-----+-----+-----+-----+----- ALL I' 1100.01100.01100.01100.01100.01100.0 96 Table 6:2a .. ------------------------------------------------- Sector: Food IWOOd IT~~:-IMetal ALL -----------------+-----+-----+-----+-----+----- supplrs, buyers provide training empl. --------+-------- 36.6 17.7 9.4 60.7 36.7 Yes I' --------+--------+-----+-----+-----+-----+----- No I' I 63.41 82.31 90.61 39.31 63.3 --------+--------+-----+-----+-----+-----+----- ALL I' 1100.01100.01100.01100.01100.0 Table 6:2b Employment intervals 1 - 51 ;0- 1 ;5- 17~0~ 1501 + ALL 2 -----------------+-----+-----+-----+-----+-----+----- Supplrs, buyers provide training empl. --------+-------- 0.1 6.1 5.6 27.5 82.7 36.7 Yes I' --------+--------+-----+-----+-----+-----+-----+----- No I' I 99.91 93.91 94.41 72.51 17.31 63.3 --------+--------+-----+-----+-----+-----+-----+----- ALL I' 1100.01100.01 100. 0 1100.01100.01100.0 97 Table 6:3a --------------------------------------------------------------------- Sector: Food Wood Textile Metal ALL -----------------+---------+---------+---------+---------+--------- Paid N 1 101 21 31 71 22 external --------+---------+---------+---------+---------+--------- trainers Ksh last year 509253.7 49564.4 59382.3 32960.1 180984.8 --------+--------+---------+---------+---------+---------+--------- Start of N 91 41 31 71 23 1 training --------+---------+---------+---------+---------+--------- program: year 1 1990.51 1993.81 1988.71 1989.31 1990.4 Table 6:3b Employment intervals 1 - 5 6 - 20 21 - 75 176 - 500 501 + -----------------+---------+---------+---------+---------+--------- Paid N I 11 41 61 71 4 external --------+---------+---------+---------+---------+--------- trainers Ksh last year 0.0 2739.8 86869.0 335002.6 166492.7 --------+--------+---------+---------+---------+---------+--------- Start of N 1 11 41 81 4 training --------+---------+---------+---------+---------+--------- program: year I 1994.01 1994.01 1987.11 1986.01 1991. 5 (CONTINUED) ALL -----------------+--------- Paid N 22 external --------+--------- trainers Ksh last year 180984.8 --------+--------+--------- Start of N 23 training --------+--------- program: year 1 1990.4 98 Table 6:4a ------------------------------------------------- Sector: Food IWOOd IT~~:-IMetal ALL -----------------+-----+-----+-----+-----+----- Send workers to courses- /univ/i- nd. ass. --------+-------- 13.0 14.6 16.9 54.5 28.8 Yes I' --------+--------+-----+-----+-----+-----+----- No I' 1 87.01 85.41 83.11 45.51 71.2 --------+--------+-----+-----+-----+-----+----- ALL I' 1100.01100.01100.01100.01100.0 Table 6.4b Employment intervals 1 - 51 ~o- 1;5- 17~0~ 2 1501 + ALL -----------------+-----+-----+-----+-----+-----+----- Send workers to courses- /univ/i- nd. ass. --------+-------- 1.1 8.6 4.1 62.6 41.2 28.8 Yes I' --------+--------+-----+-----+-----+-----+-----+----- No I' I 9S.91 91.41 95.91 37.41 5s.81 71.2 --------+--------+-----+-----+-----+-----+-----+----- ALL I' 1100.01 100 · 0 1100.01100.01100.01100.0 99 Table 6:5a ------------------------------------------------- Sector: Food IWOOd IT~~:-IMetal ALL -----------------+-----+-----+-----+-----+----- Foreman respons- able for providi- ng instr. --------+-------- 72.4 65.2 71.9 95.2 79.1 Yes --------+--------+-----+-----+-----+-----+----- No I' I 27.61 34.al 28.11 4.81 20.9 --------+--------+-----+-----+-----+-----+----- ALL I' 1100.01100.01100.01100.01100.0 Table 6:Sb Employment intervals 1 - sl~o- 12~5- 17:0~ 1501 + ALL -----------------+-----+-----+-----+-----+-----+----- Foreman respons- able for providi- ng instr. --------+-------- 38.8 63.9 82.0 89.8 100.0 79.1 Yes I' --------+--------+-----+-----+-----+-----+-----+----- No I' 1 61.21 36.1\ 18.01 10.21 .1 20.9 --------+--------+-----+-----+-----+-----+-----+----- ALL I' 1100.01100.01100.01100.01100.01100.0 100 Table 6:6a ------------------------------------------------- Sector: Food IWOOd IT~~:-IMetal ALL -----------------+-----+-----+-----+-----+----- Joint programs other firms provide trai. --------+-------- 0.8 2.9 1.6 2.9 2.1 Yes 1% --------+--------+-----+-----+-----+-----+----- No 1% I 99.21 97.11 98.41 97.11 97.9 --------+--------+-----+-----+-----+-----+----- ALL 1% 1100.01100.01100.01100.01100.0 Table 6:6b Employment intervals 1 - 5/ ~o- /2;5- /7~0~ /501 + ALL -----------------+-----+-----+-----+-----+-----+----- Joint programs other firms provide trai. --------+-------- 1.6 Yes 1% 9.2 2.1 --------+--------+-----+-----+-----+-----+-----+----- No /% I 98.41100.01100.01 90.81100.01 97.9 --------+--------+-----+-----+-----+-----+-----+----- ALL I' 1100.01100.01100.01100.01100.0/100.0 101 Table 6:7a ------------------------------------------------- Why not training? Sector: Food IWOOd IT~~:-IMetal ALL -----------------+-----+-----+-----+-----+----- (a) Not aff. because limited resourc- es --------+-------- 46.1 50.4 57.0 29.2 45.4 1 I' --------+--------+-----+-----+-----+-----+----- 2 I' I 10.71 0.01 0.31 7.11 4.6 --------+--------+-----+-----+-----+-----+----- 3 I' I 10.81 0.11 0.21 12.51 6.0 --------+--------+-----+-----+-----+-----+----- 4 I' I 0.21 0.11 21.01 14.21 7.5 --------+--------+-----+-----+-----+-----+----- 5 I' I 32.21 49.41 21.41 37.01 36.6 --------+--------+-----+-----+-----+-----+----- ALL I' 1100.01100.01100.01100.01100.0 Table 6:7b Why not training? Employment intervals 1 - 51 ;0-12~S- 17~0~ 1501 + ALL -----------------+-----+-----+-----+-----+-----+----- (a) Not aff. because limited resourc- es --------+-------- 42.2 60.8 84.S 76.2 78.3 66.0 1 I' --------+--------+-----+-----+-----+-----+-----+----- 2 I' 1 4.21 ·1 2.7113.4121. 7 1 7.7 --------+--------+-----+-----+-----+-----+-----+----- 3 I' I 10.91 0.41 3.41 6.41 .1 4.S --------+--------+-----+-----+-----+-----+-----+----- 4"" I' 15.219.114.71·1·14.0 --------+--------+-----+-----+-----+-----+-----+----- 5 I' I 37.51 29.SI 4.31 4.01 .1 17.5 --------+--------+-----+-----+-----+-----+-----+----- ALL I' 1100.01100.01100.01100.01100.01100.0 102 Table 6:7c ------------------------------------------------- Sector: Why not training? Food IWOOd IT~~~-IMetal ALL -----------------+-----+-----+-----+-----+----- (b) Costly because high labor turnover --------+-------- 74.8 67.5 43.4 37.8 56.7 1 I' --------+--------+-----+-----+-----+-----+----- 2 I' 1 17.41 7.91 1s.sl 12.51 14.1 --------+--------+-----+-----+-----+-----+----- 3 \' I 2.01 19.61 11.11 31.11 15.9 --------+--------+-----+-----+-----+-----+----- 4 I' 1 4.21 2.21 15.51 11.71 S.O --------+--------+-----+-----+-----+-----+----- 5 I' I 1.61 2.81 11.31 7.01 5.3 --------+--------+-----+-----+-----+-----+----- ALL I' 1100.01100.01100.01100.01100.0 Table 6:7d Why not training? Employment intervals 1 - 51~o- 12~5- 17~0~ 1501 + ALL -----------------+-----+-----+-----+-----+-----+----- (b) costly because high labor turnover --------+-------- 60.1 68.8 82.2 57.0 8.4 56.7 1 /' --------+--------+-----+-----+-----+-----+-----+----- 2 I' 1 28.41 13.1\ 2.01 8.81 10.7\ 14.1 --------+--------+-----+-----+-----+-----+-----+----- 3 I' I 8.11 1.81 1.71 8.81 69.91 15.9 --------+--------+-----+-----+-----+-----+-----+----- 4 I' 1 . 1 8.sl 11.01 13.41 11.01 8.0 --------+--------+-----+-----+-----+-----+-----+----- 5 I' 1 3.41 7 · 5 1 3. 1\ 12.0 I . 1 S. 3 --------+--------+-----+-----+-----+-----+-----+----- ALL I' \100.01100.01100.01100.01100.01100.0 103 .' Table 6:7e ------------------------------------------------- Sector: Why not training? Food IWOOd IT~~:-IMetal ALL -----------------+-----+-----+-----+-----+----- (c) Lack knowled- ge about training tech. --------+-------- 75.2 90.S 72.4 90.3 a2.4 1 I' --------+--------+-----+-----+-----+-----+----- 2 I' I LSi 2.41 5.61 4.41 3.4 --------+--------+-----+-----+-----+-----+----- 3 I' I 11.al 4.51 3.31 o.al 5.4 --------+--------+-----+-----+-----+-----+----- 4 " I 8.51 .1 17.91 4.61 7.3 --------+--------+-----+-----+-----+-----+----- 5 I' I 2.61 2.3\ 0.9\ .1 1.S --------+--------+-----+-----+-----+-----+----- ALL I' 1100.01100.01100.01100.01100.0 Table 6:1f Why not training? Employment intervals 1 - 51~o- /2;5- 17:0~ 1501 + ALL -----------------+-----+-----+-----+-----+-----+----- (c) Lack knowled- ge about training tech. --------+-------- 65.4 91.5 89.1 as.3 89.0 82.4 1 ,. --------+--------+-----+-----+-----+-----+-----+----- 2 I' 4.01 o.SI 4.31 1.31 _I 3.4 --------+--------+-----+-----+-----+-----+-----+----- 3 I' I 15.01 0.91 2.01 4.01 .1 5.4 --------+--------+-----+-----+-----+-----+-----+----- 4 I' I 13 - 5 I 6.61 3.11 .1 11. 0 1 1.3 --------+--------+-----+-----+-----+-----+-----+----- 5" . I' 1 2.01 0.21 1.SI 3.41 .\ 1.5 --------+--------+-----+-----+-----+-----+-----+----- ALL \100.01100.01100.01100.01100.01100.0 104 : .' Table 6:7g ------------------------------------------------- Sector: Why not training? Food lwood IT~~:-IMetal ALL -----------------+-----+-----+-----+-----+----- (d) Because firm uses mature technol- ogy --------+-------- 71.5 35.5 39.3 28.4 44.8 1 I' --------+--------+-----+-----+-----+-----+----- 2 1' 1 8. 11 2 . 61 3 . 91 34.41 13.2 --------+--------+-----+-----+-----+-----+----- 3 I' I 12.01 7.01 19.91 3.41 10.1 --------+--------+-----+-----+-----+-----+----- 4 I' 1 3.41 48.31 22.sl 20.71 22.S --------+--------+-----+-----+-----+-----+----- 5 I' 1 5.01 6.61 14.31 13.11 9.4 --------+--------+-----+-----+-----+-----+----- ALL I' 1100.01100.01100.01100.01100.0 Table 6:7h Why not training? Employment intervals 1 - sl ~o- 12~5- 17:0~ 1501 + ALL -----------------+-----+-----+-----+-----+-----+----- (d) Because firm uses mature technol- ogy --------+-------- 56.8 40.5 77.7 40.9 1 I' 44.8 --------+--------+-----+-----+-----+-----+-----+----- 2 I' I 10.6\ 0.31 5.41 5.21 51.31 13.2 --------+--------+-----+-----+-----+-----+-----+----- 3 I' 1 7.91 9.61 3.31 9.81 21.71 10.1 --------+--------+-----+-----+-----+-----+-----+----- 4 I' I 11.21 46.71 9.81 20.sl 27.0\ 22.S --------+--------+-----+-----+-----+-----+-----+----- 5 I' 1 13.61 2.91 3.81 23.51 · I 9.4 --------+--------+-----+-----+-----+-----+-----+----- ALL I' 1100.01100.01100.01100.01100.01100.0 105 Table 6:7i ------------------------------------------------- Why not training? Sector: Food IWOOd IT~~:-IMetal ALL -----------------+-----+-----+-----+-----+----- (e) Skil workers readily hired oth firms --------+-------- 71.8 29.8 51.8 55.7 53.6 1 I' --------+--------+-----+-----+-----+-----+----- 2 I\ I 13 · 0 I 2 · 41 4. 31 o. 51 5 · 3 --------+--------+-----+-----+-----+-----+----- 3 I' / 1.7/ 25.21 8.01 23.21 14.4 --------+--------+-----+-----+-----+-----+----- 4 1\ 1 6.71 41.51 24.01 19.31 21.7 --------+--------+-----+-----+-----+-----+----- 5 I' I 6.81 1.11 11.S1 1.31 4.9 --------+--------+-----+-----+-----+-----+----- ALL I' 1100.0/100.01100.01 100 .01100.0 Table 6:7j Why not training? Employment intervals ~o- 17~0~ 2 1 - 51 1 ;5- 1501 + ALL -----------------+-----+-----+-----+-----+-----+----- (e) Skil workers readily hired oth firms --------+-------- 42.8 34.2 73.1 56.5 70.7 53.6 1 --------+--------+-----+-----+-----+-----+-----+----- 2 1, I 8. 71 0.41 :2 .91 12. 61 · 1 5.3 --------+--------+-----+-----+-----+-----+-----+----- 3 I' I 15.41 14.S\ 5.61 17.11 18.5\ 14.4 --------+--------+-----+-----+-----+-----+-----+----- 4" I' I 21.01 48.2\ 11.51 13.71 10.7\ 21.7 --------+--------+-----+-----+-----+-----+-----+----- 5 \' I 12.21 2.41 6.81 .1 .1 4.9 --------+--------+-----+-----+-----+-----+-----+----- ALL I' 1100.01100.01100.01100.01100.01100.0 106 Table 6: 7k ------------------------------------------------- Why not training? Sector: Food IWOOd IT~~:-IMetal ALL -----------------+-----+-----+-----+-----+----- (f) Skills provided by schools adequate --------+-------- 80.5 71.5 73.9 8S.0 79.2 1 I' --------+--------+-----+-----+-----+-----+----- 2 I' I 4.21 14.91 16.9/ 6.11 9.7 --------+--------+-----+-----+-----+-----+----- 3 /% / 1.1/ 11.5/ 3.01 3.4/ 4.6 --------+--------+-----+-----+-----+-----+----- 4 /' / 7.31 2.0/ 4.4/ 2.51 4.2 --------+--------+-----+-----+-----+-----+----- 5 I' 1 7·0 1./1.91./2.4 --------+--------+-----+-----+-----+-----+----- ALL I' 1100.0/100.01100.01100.01100.0 Table 6:71 Why not training? Employment intervals ~o- 1 ;5- 17~0~ 2 1 - 51 ALL 1501 + -----------------+-----+-----+-----+-----+-----+----- (f) Skills provided by schools adequate --------+-------- 69.6 90.5 87.5 79.9 70.7 79.2 1 I' --------+--------+-----+-----+-----+-----+-----+----- 2 I' I 5.81 0.81 5.0\ 12.01 29.31 9.7 --------+--------+-----+-----+-----+-----+-----+----- 3 /% 1 7.51 7.7/ 4.31 1.41 .1 4.6 --------+--------+-----+-----+-----+-----+-----+----- 4 I' / 9.sl 0.61 o.sl 6.71 .1 4.2 --------+--------+-----+-----+-----+-----+-----+----- 5 I' 1 7.31 0.5/2.3/ .1 ./ 2.4 --------+--------+-----+-----+-----+-----+-----+----- ALL /' 1100.0/100.01100.01100.0/100.0/100.0 107 Table 6:7m ------------------------------------------------- Sector: Why not training? Food IWOOd IT~~:-IMetal ALL -----------------+-----+-----+-----+-----+----- (g) Skeptic- al about benefits of training --------+-------- 49.2 83.3 68.8 87.0 71.5 1 I' --------+--------+-----+-----+-----+-----+----- 2 I' 1 1.11 Lsi 21.91 0.71 5.2 --------+--------+-----+-----+-----+-----+----- 3 I' I s.41 4.71 0.61 .1 3.7 --------+--------+-----+-----+-----+-----+----- 4 I' I 7.01 O.SI 4.11 7.11 5.0 --------+--------+-----+-----+-----+-----+----- 5 I' 1 34.41 9.41 4.61 5.21 14.7 --------+--------+-----+-----+-----+-----+----- ALL I' 1100.01100.01100.0\100.01100.0 Table 6:7n ------------------------~------------------------------ Why not training? Employment intervals ~o- 17:0~ 2 1 - 51 1 ;5- 1501 + ALL -----------------+-----+-----+-----+-----+-----+----- (g) Skeptic- al about benefits of training --------+-------- 70.6 7S.3 34.3 83.9 89.3 71.S 1 --------+--------+-----+-----+-----+-----+-----+----- 2 I' I 5.21 0.41 2.91 7.41 10.71 5.2 --------+--------+-----+-----+-----+-----+-----+----- 3 I' 1 12 · 61 0 · 91 1. 2 I .I .1 3 ·7 --------+--------+-----+-----+-----+-----+-----+----- 4" I' 19.71 6.sl O.SI 4.71 ·15.0 --------+--------+-----+-----+-----+-----+-----+----- 5 I' I 1.9113.7160.91 4.01 ·114.7 --------+--------+-----+-----+-----+-----+-----+----- ALL 1100.01 100.01 100.01 100.01100.01100.0 108 7. INVESTMENTS AND FINANCIAL MARKETS '7.1 Acquisition of capital stock We asked a set of questions about investments: 11 firms in the sample had bought land during 1994, 11 had bought buildings, and 104 had invested in equipment. The latter figure is considerably higher than last year, most likely because liberalization of imports was having some impact on the economy. Tables 7: 1a-b show that investments were practically stagnant nominally between 1992 and 1993, while there was a very big real increase between 1993 and 1994. Equipment investments were rather evenly spread across sectors and size classes. Investment activity was highest in the food sector, followed by wood, while, as expected, few firms in textiles invested in equipment. The figures for sources of investment finance reported in Tables 7:2a-b are somewhat hard to interpret, since they represent the percentage contributions of a certain source only for those cases where that source was used, and thus the columns sum to more than lOOt. Still, it is clear that the dominant source of finance was retained earnings: For the 78 firms using this source, it constituted 79\ of financing. Bank loans were used by 20 firms and bank overdrafts by 10\; for those this source was very important. Personal savings and borrowing from friends and relatives were important for some small and medium firms. Second-hand equipment is bought mainly by smaller firms, particularly in the food and wood sectors (Tables 7:3a-b). More than 70\ of equipment purchased was imported: particularly for the larger firms, but also for many smaller ones, domestic supply matters very little (Tables 7:4a-b). There is very little domestic supply of investment goods in Kenya. Of f irma which invested in new equipment, about 40\ invested to increase capacity, especially the metal sector (51\). In the wood sector replacement investments dominated, while in textiles it was actually investments to expand production that dominated (39\). The smallest firms mostly replaced old equipment, as one would expect. Of all those that invested, only 20\ reported that costs had been reduced, while 55\ reported that the quality of the product had improved. 109 Of all firms, about half reported than they were investing to introduce new products; this was particularly true in the food sector, which seems to be the most dynamic of those we covered, while investments to introduce new products were undertaken in textiles. Sales of equipment were due to excess capacity in the vast majority of cases, but only 4\ of firms sold land, buildings, or equipment. OVer a quarter of those sales were because of liquidity problems, all in the metal sector. In the ailing textile industry sales were either due to replacement (5S\) or because there was no demand for the product (41\). This also shows that the I textile sector has been hit by a severe slump. 7.2 Acce ·· to Credit Credit purchases from suppliers are very common. We asked the firms why they were buying on credit (Tables 7:5a-b). As one would expect, the most common answer was, as one would expect, that the client needed credit, but it was also noted that the interest rate was low or in some cases zero. Particularly the smaller firms required supplier's credit. We also asked about outstanding credit balances, and found they ware very extensive, particularly in the metal sector (Tables 7:6a-b), but the firms also had large outstanding balances due to them from clients. We asked the firms why they sellon credit. About a third answered that credit makes regular customers, and 24\ said that they can sell more if the give credit (Tables 7:7a-b). There seems to have been some improvement in access to finance since last year, at least to bank loans (Tables 7:8a-d and 7:9a-d), but all the net improvement is concentrated in the metal sector, and in large firms. Three- quarters of the respondents report that costs of credit have qone up, and they are now generally considered to be high or very high, whiCh is surprising, since interest rates were generally lower than last year. Access to trade credit seems generally to be rather easy, except for the smaller firms (Tables 7:10a-d). There does not seem to have been much overall change in access since last year, but again it was the metal sector ad the larger firms that reported net improvements, while all the rest reported poorer access. Aqain costs seem to have gone up somewhat. Access to credit 110 from informal groups seems to have improved somewhat: here both metal and wood sectors report net improvements, and only the smallest firms report poorer ·access (Tables 7:1la-d). Costs are low for this type of credit. Access to credit from friends and relatives is less easy, but still not too difficult. 7.3 Borrowing Prom Pormal Institutions The wood sector (41%) utilized overdraft facilities less than the others (72- 78%) (Table 7:12a). Almost no smaller firms had such facilities, while almost all larger ones did; 23\ of firms increased the maximum amount of their facility. We also asked about the collateral that firms had to put up when borrowing from banks. For the smallest firms, mostly informal ones, it was almost only land that was used (Tables 7:I3a-b). Metal firms were especially dependent on equipment as collateral (with 92\), while almost 76% and 58% of the wood and textile firms, respectively, used land. About a quarter of the loans were denominated in foreign currency, al to firms with more than 7S employees. Of the 31% of the firms which applied for a loan from a formal institution, the application was approved in 86% of the cases. Thus, once firms apply, they are likely to get a loan. However, there is certainly a process of self- selection: Smaller firms do not even try to get a loan, perhaps because it was applications from smaller firms that were rejected. The total value of collateral for bank loans was considerably larger than the current balance of the loans (Tables 7:ISa-d), but the collateral-loan ratio presumably originally was smaller, because in many cases some of the loan has probably since been paid off. We do not know exactly by how much the figures overestimate the ratio, but when we consider loans from non-banks, such as credit unions, the ratio is much closer to one. Loans from foreign banks, on the other hand, are similar to those from local banks in this respect. We also asked firms which had not applied for a loan, why they had not done so. The most common answer (43\) was that they did not need one, while 11\ said they had inadequate collateral, 9\ thought the process was too difficult, and 3\ did not think they would get a loan. A further 4\ found the interest III rate too high, while 9\ thought they were already too heav~ly indebted. Among the smallest firms, 24% thought they had inadequate collateral, 22% found the process too difficult, and 6% did not think they would get a loan. Thus in the . smallest category many may be discouraged about their ability to get a loan. A substantial proportion of the micro-enterprises do not actually have dealings with banking institutions: 74% of firms with up to 5 employees and 4S\ with between 6 and 20 employees did not have current accounts with any bank (~able 7:lSb); 24% of the firms with up to 5 employees, and 31% between 6 and 20 employees, did not have savings accounts (Table 7:1Sd). Of wood firms, 44% did not have current accounts, and of the textile firms, 32\. Foreign currency accounts were mainly found in the firms of more than 75 employees (Table 7:18f); altogether, 47\ had foreign-currency accounts. Metal firms led with 70\ (Table 7:18e) as expected, since they also lead in terms of participation in the export markets. Foreign bank accounts were extremely, with only 0.4% of the firms reporting such accounts (Tables 7:1Sg-h), all in firms between 6-75 employees. 7.4 Inforaal Credit Informal borrowing is very important for firms with up to 20 employees (Tables 7:l6a-b): Just under a third of these firms borrow from informal sources. Wood firms (23') and food firms (13\) used informal credit more than textile or metal firms {7'.The main reasons given for choosing to borrow in the informal market (Tables 7:l7a-b) were easier formalities (58%), and flexible payback (22\), and no collateral required (12'). Easy formalities was particularly important for the smallest firms, but flexible payback also mattered a lot, even more for the medium firms. Relative costs seem to be of less importance. The amounts involved in these types of loans are of course small, typically about 5,000 shillings, but one large firm said it could borrow up to 6 million shillings informally; A few firms said they were members of some informal credit group and had borrowed from it; for a majority of the small firms, however, borrowing from informal sources is largely a "family affair". 112 7.5 Financial Assets Acquired Finally we asked whether the firms had acquired financial assets in the last year. 10% had acquired shares in other enterprises, 2% treasury bills, and 1% bonds. Thus there seems to be very little financial investment among Kenyan manufacturing firms. 113 Table 7:1& -*------------------------------------------------------------------- Investments 1992 Sector: --------------------------------------- ALL Wood Food / Textile / Metal -----------------+---------+---------+---------+---------+--------- Land N 501 551 491 50 I 204 --------+---------+---------+---------+---------+--------- Ksh 7258.41 164339.11 15335.91 6106.31 39917.2 --------+--------+---------+---------+---------+---------+--------- Build. N 1 501 551 so/ SO/ 205 --------+---------+---------+---------+---------+--------- Keh / 65068.21 364469.61 208023.412357140.51 739450.5 --------+--------+---------+---------+---------+---------+--------- Equip. N 1 511 561 521 521 2ll --------+---------+---------+---------+---------+--------- Ksh 12767799.415064282.813635983.6IS273482.214214274.9 Investments 1993 Sector: Food Wood I Textile I Metal ALL -----------------+---------+---------+---------+---------+--------- Land IN I 491 541 491 501 2021 I;:~-----i--;;;;;~;i---;~~;~~i------~~~i----~~;~;i--;;;~;~; --------+--------+---------+---------+---------+---------+--------- Build. N 1 501 551 SOl SOl 205 --------+---------+---------+---------+---------+--------- Keh 12129278.91 374072.612801839.11 718145.411583307.6 --------+--------+---------+---------+---------+---------+--------- Equip. N 1 511 s51 521 521 210 --------+---------+---------+---------+---------+--------- Keh 16948325.61 68562.014953167.7Is502246.514913908.1 Investments 1994 Sector: Food Wood I Textile I Metal ALL -----------------+---------+---------+---------+---------+--------- Land N 511 s51 501 20S --------+---------+---------+---------+---------+--------- Keh I 18382.1/ 99164.51 17579.91 2332.41 30028.1 --------+--------+---------+---------+---------+---------+--------- Build N / 511 551 sol 491 205 --------+---------+---------+---------+---------+--------- Ksh 12321486.0/ 459391.81 0.0/1331137.211155768.6 --------+--------+---------+---------+---------+---------+--------- Equip. N 1 521 571 521 521 213 --------+---------+---------+---------+---------+--------- 9004970.91 8622803.81 11341630 Ksh 1 18522543 18080931.51 114 Table 7:1b --------------------------------------------------------------------- Employment intervals Investments 1992 ------------------------------------------------- Sal -+- 1 - 5 6 - 20 21 - 75 176 - 500 -----------------+---------+---------+---------+----------+---------- Land N 541 491 531 411 7 --------+---------+---------+---------+---------+--------- Ksh I 255.51 0.01 21884.61 165547.51 0.0 --------+--------+---------+---------+---------+---------+--------- Build. N 1 541 491 541 411 7 --------+---------+---------+---------+---------+--------- Ksh 0.01 17237.31 368187.112497584.01 490843.9 --------+--------+---------+---------+---------+---------+--------- Equip. N I 541 521 551 421 8 --------+---------+---------+---------+----------+---------- Ksh I 138406.11 8059.71 130329.113063198.61 9773 184.2 Investments 1992 ALL -----------------+--------- 1992/93 N 204 --------+--------- Ksh 39917.2 --------+--------+--------- 1992/93 N I 205 --------+--------- Ksh I 739450.5 --------+--------+--------- 1992/93 N 211 --------+--------- Ksh 14214274.9 115 -----------------------------------------------------~--------------- I'nvestments 1993 Employment intervals 1 - 5 6 - 20 21 - 75 176 - 500 501 + -----------------+---------+---------+---------+---------+--------- land N 54/ 481 531 40 I 7 --------+---------+---------+---------+---------+--------- Ksh 0.01 825.01 0.01 147961.81 0.0 --------+--------+---------+---------+---------+---------+--------- Build. N I 541 49/ 54\ 411 7 --------+---------+---------+---------+---------+--------- Keh I 1703.7/ 6994.41 116861.21 830968.115155819.7 --------+--------+---------+---------+---------+---------+--------- Equip. N 1 531 521 551 421 8 --------+---------+---------+---------+---------+--------- Ksh I 20836.21 18549.81 294684.815206116.4/ 10535813 --------------------------------------------------------------------- (CONTINUED) Investments 1993 \ ALL -----------------+--------- 1993/94 N 1 202 --------+--------- Ksh 32846.6 --------+--------+--------- 1993/94 . N 205 --------+--------- Keh 11583307.6 --------+--------+--------- 1993/94 N 210 --------+--------- Keh 14913908.1 ----------------------------- 116 --------------------------------------------------------------------- Employment intervals .' Investments 1994 1 - S I 6 - 20 I 21 - 7S 176 - 500 1 501 + -----------------+---------+---------+---------+---------+--------- Land N \ 54\ sol 53\ 411 7 --------+---------+---------+---------+---------+--------- Keh I 0.01 83333.31 54041.8\ 42579.51 0.0 --------+--------+---------+---------+---------+---------+--------- Build. N \ 531 501 54\ 411 7 --------+---------+---------+---------+---------+--------- Ksh \ 4308.1\ 37769.81 236904.811993479.712518561.6 --------+--------+---------+---------+---------+---------+--------- Eequip. N I 54\ 531 551 43\ 8 --------+---------+---------+---------+---------+--------- Ksh \ 8922.01 49299.41 469821.9\6448603.21 27511282 (CONTINUED) Investments 1994 I ALL -----------------+--------- 1994/95 N I 205 --------+--------- Ksh 1 30028.1 --------+--------+--------- 1994195 N I 205 --------+--------- Ksh 11155768.6 --------+--------+--------- 1994/95 N 213 --------+--------- Ksh I 11341630 117 .' Table 7.2a -~------------------------------------------------------------------- Aeq. form, equip. Seetor: --------------------------------------- Metal Food Wood Textile ALL -----------------+---------+---------+---------+---------+--------- (a> N 1 17/ 201 161 251 78 Company --------+---------+---------+---------+---------+--------- retained , earnings 98.6 I 96.8 I 69.6 I 68.0 I 79.0 --------+--------+---------+---------+---------+---------+--------- (b) N 81 13 Per80nal savings' --------+---------+---------+---------+---------+--------- 100.01 84.31 27.01 12.81 72.2 --------+--------+---------+---------+---------+----~----+--------- (e) N / 01 21 11 21 5 Borrowed from --------+---------+---------+---------+---------+--------- , friends or relativ- es 3.8 0.0 46.5 21.4 --------+--------+---------+---------+---------+---------+--------- (d) Bank N 81 20 Loan --------+---------+---------+---------+---------+--------- , I 76.01 86.1/ 96.21 65.81 71.6 --------+--------+---------+---------+---------+---------+--------- (e) Bank N I 41 11 21 31 10 Overdra- --------+---------+---------+---------+---------+--------- ft , I 98.91 0.01 21.31 94.91 85.9 --------+--------+---------+---------+---------+---------+--------- (f) N I 11 2\ 11 2\ 6 , Supplier --------+---------+---------+---------+---------+--------- Credit I 100.0/ 35.7/ 0.01 34.31 10.5 --------+--------+---------+---------+---------+---------+--------- (g) N \ 01 11 11 11 3 Borrowed --------+---------+---------+---------+---------+--------- from , money lender 0.0 0.0 0.0 0.0 (CONTINUED) 118 -------------------------------------------------~------------------- Aeq. form, land Sector: Food Wood I Textile I Metal ALL -----------------+---------+---------+---------+---------+--------- (h) N 11 11 11 11 4 Holding --------+---------+---------+---------+---------+--------- company % or parent company 100.0 0.0 0.0 0.0 11.0 --------+--------+---------+---------+---------+---------+--------- (i) Sale N I 01 11 11 11 3 of equity --------+---------+---------+---------+---------+--------- I ·1 0.01 0.01 0.01 0.0 --------+--------+---------+---------+---------+---------+--------- (j) New N I 01 11 11 11 3 Partner --------+---------+---------+---------+---------+--------- I ·1 0.01 0.01 0.01 0.0 --------+--------+---------+---------+---------+---------+--------- ( k) N I 1\ 2\ 21 21 7 Other --------+---------+---------+---------+---------+--------- I 100.01 47.91 12.11 16.0/ 26.1 --------------------------------------------------------------------- 119 Table 7:2b --------------------------------------------------------------------- Acq. form, equip. Employment intervals ------------------------------------------------- 501 + 1 - 5 6 - 20 21 - 75 /76 - 500 -----------------+---------+---------+---------+---------+--------- (a) N 201 221 161 171 3 Company --------+---------+---------+---------+---------+--------- retained \ earnings 9S.7 I 91.9 I 9S.0 I 8S.1 I 49.9 --------+--------+---------+---------+---------+---------+--------- (b) N I 81 21 21 01 1 Personal --------+---------+---------+---------+---------+--------- savings I 96.41 7s.11 22.41 .1 0.0 [. --------+--------+---------+---------+---------+---------+--------- (e) N I 11 21 11 01 1 Borrowed --------+---------+---------+---------+---------+--------- from \ friends or relativ- es 0.0 48.8 0.0 0.0 --------+--------+---------+---------+---------+---------+--------- (d) Bank N 0/ 5 Loan --------+---------+---------+---------+---------+--------- , I 0.01 -I 67.6/ 83.01 70.5 --------+--------+---------+---------+---------+---------+--------- (e) Bank N 1/ 1/ 3/ 3/ 2 OVerdra- --------+---------+---------+---------+---------+--------- ft , I 0.0/ 100.01 70.11 8S.31 86.9 --------+--------+---------+---------+---------+---------+--------- (f) N 0/ 1 Supplier --------+---------+---------+---------+---------+--------- Credit I 0.0/ 100.01 52.11 .I 0.0 --------+--------+---------+---------+---------+---------+--------- (g) N I 11 01 11 01 1 Borrowed --------+---------+---------+---------+---------+--------- from money lender 0.0 0.0 0.0 (CONTINUED) 120 -------~--------------------- Acq. form, equip. I ALL -----------------+--------- (a) N 78 company --------+--------- retained % earnings I 79.0 --------+--------+--------- 13 (b) N personal --------+--------- savings' I 72.2 --------+--------+--------- (c) N I 5 Borrowed --------+--------- r from " l. friends or relativ- es 21.4 --------+--------+--------- (d) Bank N I 20 Loan --------+--------- " I 71.6 --------+--------+--------- (e) Bank N I 10 Overdra- --------+--------- ft " I 85.9 --------+--------+--------- (f) N I 6 Supplier --------+--------- Credit" I 10.5 --------+--------+--------- (g) N 3 Borrowed --------+--------- from money lender 0.0 --------+--------+--------- (h) N I 4 Holding --------+--------- company or parent " company 11.0 (CONTINUED) , 122 --------------------------------------------------------------------- Acq. form, equip. Employment intervals 1 - 5 6 - 20 21 - 75 176 - 500 501 + -----------------+---------+---------+---------+---------+--------- (h) N 11 01 11 11 1 Holding --------+---------+---------+---------+---------+--------- company or parent company 0.0 0.0 100.0 0.0 --------+--------+---------+---------+---------+---------+--------- (i) Sale N I 11 01 11 01 1 of equity --------+---------+---------+---------+---------+--------- / 0.01 ./ 0.01 ./ 0.0 --------+--------+---------+---------+---------+---------+--------- (j) New N I 01 01 1 Partner --------+---------+---------+---------+---------+--------- I 0.01 .1 0.01 ·1 0.0 --------+--------+---------+---------+---------+---------+--------- ( k) N 21 21 21 01 1 1 other --------+---------+---------+---------+---------+--------- 1 23-.61 51.3/ 67.71 ./ 0.0 --------------------------------------------------------------------- (CONTINUED) 121 Acq. form, equip. I -----------------+--------- (i) Sale N I 3 of equity --------+--------- % I 0.0 --------+--------+--------- (j) New N 3 Partner --------+--------- 0.0 --------+--------+--------- (k) N 7 Other --------+--------- 26.1 123 Table 7:3& ------------------------------------------------- Sector: Food /WOOd IT~~:-IMetal ALL -----------------+-----+-----+-----+-----+----- New or used equipme- nt: --------+-------- 56.9 67.7 58.4 67.5 63.2 New I' --------+--------+-----+-----+-----+-----+----- Used I' 1 43.11 31.61 14.31 12.9/ 24.8 I. --------+--------+-----+-----+-----+-----+----- Mixed /' 1 . 1 0,'1 27.41 19.61 12.0 --------+--------+-----+-----+-----+-----+----- ALL I' 1100.01100.01100.01100.01100.0 Table 7:3b Employment intervals 17:0~ 2 1 - 51 ;0- 1 ;5- 1501 + ALL -----------------+-----+-----+-----+-----+-----+----- New or used equipme- nt: --------+-------- 64.3 28.4 89.6 87.3 55.2 63.2 New I' --------+--------+-----+-----+-----+-----+-----+----- Used I' I 30.91 71.61 7.51 3.71 24.11 24.8 --------+--------+-----+-----+-----+-----+-----+----- Mixed I' 4 . 8 1 . 1 2.91 9.01 20.71 12.0 --------+--------+-----+-----+-----+-----+-----+----- ALL I' 1100.01100.01100.01100.01100.01100.0 124 Table 7:4a ------------------------------------------------- Sector: Food IWOOd lT~~!-IMetal ALL -----------------+-----+-----+-----+-----+----- Imported or locally produced --------+-------- 54.7 59.9 49.2 94.5 72.5 Foreign I' --------+--------+-----+-----+-----+-----+----- Local I' I 44.3/ 38.61 28.11 4.21 23.8 --------+--------+-----+-----+-----+-----+----- Mixed 1% 1.01 1.51 22.7/ 1.31 3.7 --------+--------+-----+-----+-----+-----+----- ALL /' /100.0/100.01100.01100.01100.0 Table 7:4b Employment intervals ~o- 17:0~ 2 1 - 51 1 ;5- 1501 + ALL -----------------+-----+-----+-----+-----+-----+----- Imported or locally produced --------+-------- 50.3 69.5 19.4 85.9 90.2 72.S Foreign /' --------+--------+-----+-----+-----+-----+-----+----- Local /' I 45.9/ 30.5/ 78.S/ 6.sl 6.2/ 23.8 --------+--------+-----+-----+-----+-----+-----+----- Mixed I% I 3 · 8/ · I 1. 8\ 7 · 61 3 · 61 3 · 7 --------+--------+-----+-----+-----+-----+-----+----- ALL I' \100.0\100.0/100.01 100 · 0 /100.0\100.0 125 Table 7:Sa ------------------------------------------------- sector: ----------------------- Food iWOOd IT~~:-IMetal ALL -----------------+-----+-----+-----+-----+----- Why buy on credit from supplie- rs , --------+-------- I do not \ " pay interest and no discount if 3.3 24.1 15.1 9.4 11.1 --------+--------+-----+-----+-----+-----+----- Cash \ discount not very high 1.5 3.0 0.3 0.9 --------+--------+-----+-----+-----+-----+----- Interest , paid not very high 0.6 0.8 0.4 50.8 19.4 --------+--------+-----+-----+-----+-----+----- Only , sellon credit 3.S 0.4 0.6 0.2 1.3 , --------+--------+-----+-----+-----+-----+----- I require creait 39.2 64.6 28.0 12.0 30.8 --------+--------+-----+-----+-----+-----+----- other I' 1 53.01 8.61 53.01 27.31 36.5 --------+--------+-----+-----+-----+-----+----- ALL I' 1100.01100.01100.01100.01100.0 ------------------------------------------------- 126 Table 7:5b ------------------------------------------------------- Employment intervals ----------------------------- ~o- 17;0~ 2 1 - 5\ 1 ;5- 1501 + ALL -----------------+-----+-----+-_.. _-+-----+-----+----- Why buy on credit from supplie- rs --------+-------- I do not % pay interest and no discount if 23.4 2.2 7.2 26.5 5.6 11.1 --------+--------+-----+-----+-----+-----+-----+----- Cash , discount not very high 0.4 3.3 4.1 0.9 --------+--------+-----+-----+-----+-----+-----+----- Interest , paid not very high 0.9 2.0 39.0 19.4 --------+--------+-----+-----+-----+-----+-----+----- Only , sellon credit 1.1 2.5 3.5 1.3 , --------+--------+-----+-----+-----+-----+-----+----- I require credit 48.5 91.0 78.1 25.3 6.6 30.8 --------+--------+-----+-----+-----+-----+-----+----- other I' 1 27 · 6 1 1.51 6.1144.81 48 · 8 1 3 6.5 --------+--------+-----+-----+-----+-----+-----+----- ALL I' 1100.01100.01100.01100.01100.01100.0 127 Table 7:6a --------------------------------------------------------------------- S.ctor: Food Wood 1 Textile 1 Metal ALL -----------------+---------+---------+---------+---------+--------- Outstan- N I 521 571 511 501 210 ding --------+---------+---------+---------+---------+--------- balance Ksh owed to supplie- rs 13946489 2716324.7 4557732.1 116127441 45420307 --------+--------+---------+---------+---------+---------+--------- Amount N 1 511 571 521 511 211 due to --------+---------+--,._-----+---------+---------+--------- you from Ksh all supplie- rs 1020159.1 104291.6 11335107 163964.3 2671065.2 --------+--------+---------+---------+---------+---------+--------- Outst. N I 53' 571 511 501 211 balance due to --------+-------------------+---------+---------+--------- Ksh you from clients 7171856.2 4249301.2 13274455 84630106 34777396 --------+--------+---------+---------+---------+---------+--------- Amount N I :ill 571 521 511 211 owed to --------+----------+---------+---------+---------+--------- all clients Ksh I 511728.21 397840.51 163111.9/ 183096.91 307041.1 128 Table 7:6b --------------------------------------------------------------------- Employment intervals 1 - 5 1 6 - 20 I 21 - 75 176 - 500 I 501 + -----------------+---------+---------+---------+---------+--------- Outstan- N 551 541 531 40/ 8 ding --------+---------+---------+---------+---------+--------- balance Ksh owed to supplie- rs 5125.4 65331.5 2609798.0 34012042 104836900 --------+--------+---------+---------+---------+---------+--------- Amount N 1 551 531 541 41/ 8 due to --------+---------+---------+---------+---------+--------- you from Ksh all supplie- rs 306.0 10658.5 150567.8 1936502.6 6210003.2 --------+--------+---------+---------+---------+---------+--------- Outst. N I 551 54l 531 411 8 balance due to --------+---------+---------+---------+---------+--------- Ksh you from clients 16370.1 128360.7 4431334.8 28914700 78149553 --------+--------+---------+---------+---------+---------+--------- Amount N I 551 521 551 411 8 owed to all --------+---------+---------+---------+---------+--------- clients Ksh I 4863.71 33824.7/297995.511487926.81 0.0 (CONTINUED) 129 ----------------------------- I ALL -----------------+--------- Outstan- N I 210 ding --------+--------- balance Ksh owed to supplie- rs 45420307 --------+--------+--------- Amount N I 2ll due to --------+--------- you from Ksh all supplie- rs 2671065.2 --------+--------+--------- Outst. N 211 balance due to --------+--------- Ksh you from clients 34777396 --------+--------+--------- Amount N I 2ll owed to --------+--------- all clients Ksh I 307041.1 130 Table 7 :7a ------------------------------------------------- sector: ----------------------- Food !WOOd IT~~:-IMetal ALL -----------------+-----+-----+-----+-----+----- Reason to sell on credit to clients --------+-------- Credit \ makes regular clients 13.9 42.9 13.8 55.9 33.5 --------+--------+-----+-----+-----+-----+----- charge a \ higher price 0.7 0.3 0.2 --------+--------+-----+-----+-----+-----+----- Charge , interest usually too high 0.4 0.1 --------+--------+-----+-----+-----+-----+----- The \ clients do not want to prepay or pay 10.6 19.7 15.9 6.2 11.5 --------+--------+-----+-----+-----+-----+----- Can sell , more of the product 33.9 32.1 33.4 7.6 23.9 --------+--------+-----+-----+-----+-----+----- other /' / 41.6/ 4.2\ 36.6/ 30.31 30.9 --------+--------+-----+-----+-----+-----+----- ALL I' 1100.01100.01100.01100.01100.0 ------------------------------------------------- 131 Table 7:7b ------------------------------------------------------- ----~~::~~~~:-:~:~~:~:~-----l 51 ~o- 1 ;5- 17~0~ 1501 +/ ALL 2 1 - -----------------+-----+-----+-----+-----+-----+----- Reason to sell on credit to clients --------+-------- credit , makes regular clients 67.2 38.3 16.0 19.9 38.0 33.5 --------+--------+-----+-----+-----+-----+-----+----- Charge a , higher price 0.7 0.7 0.2 --------+--------+-----+-----+-----+-----+-----+----- Charge , interest usually too high 0.6 0.1 --------+--------+-----+-----+-----+-----+-----+----- The \ clients do not want to prepay or pay 13.9 36.3 10.2 22.8 1l.S --------+--------+-----+-----+-----+-----+-----+----- Can sell , more of the product 14.8 12.3 65.4 25.6 14.4 23.9 --------+--------+-----+-----+-----+-----+-----+----- Other I' I 4.1111.81 7.6131. 7 1 47 · 6 130.9 --------+--------+-----+-----+-----+-----+-----+----- ALL I' 1100.01100.01100.01100.01100.01100.0 ------------------------------------------------------- 132 Table 7:8a ------------------------------------------------- Overdrafts Sector: Food IWOOd IT~~:-IMetal ALL I -----------------+-----+-----+-----+-----+----- Access is --------+-------- Very easy I' 7.S 19.6 17.0 5.9 10.9 --------+--------+-----+-----+-----+-----+----- Easy /% I 42.11 19.51 20.51 75.31 45.6 --------+--------+-----+-----+-----+-----+----- Moderate I, I 34.41 1.sl 11.11 5.71 14.4 --------+--------+-----+-----+-----+-----+----- ~!ffiCU-\% I 5.4\ 11.9\ 39.01 3.71 12.2 --------+--------+-----+-----+-----+-----+----- Very % difficu- It 5.3 24.0 6.2 6.2 9.1 --------+--------+-----+-----+-----+-----+----- ~~~OSSi-l% I 4.91 23.2\ 6.11 3.2/ 7.8 --------+--------+-----+-----+-----+-----+----- ALL I' 1100.01100.01100.01100.0/100.0 133 Table 7:8b ------------------------------------------------------- Employment intervals OVerdafts ~o- 2 7 1 - 51 1 ;5- 1 :0; 1501 + ALL -----------------+-----+-----+-----+-----+-----+----- Access is I --------+-------- Very easy I' 0.2 1.7 7.9 30.2 8.7 10.9 --------+--------+-----+-----+-----+-----+-----+----- Easy 1\ I 1s.31 23.6/ 18.11 37.01 77.21 45.6 --------+--------+-----+-----+-----+-----+-----+----- Moderate I' / 8.81 3.3164.0121.11 .1 14.4 --------+--------+-----+-----+-----+-----+-----+----- ~!ffiCU-I\ I 16051 10.41 3.11 11.71 14.11 12.2 --------+--------+-----+-----+-----+-----+-----+----- Very \ difficu- It 23.3 41.8 6.5 9.1 --------+--------+-----+-----+-----+-----+-----+----- !~:Ossi-I' 135.81 19.21 0.41 .1 ./ 7.8 --------+--------+-----+-----+-----+-----+-----+----- ALL I' 1100.01100.0/100.01100.01100.0/100.0 134 Table 7:Sc ------------------------------------------------- Bank loans Sector: Food IWOOd IT~~:-IMetal ALL -----------------+-----+-----+-----+-----+----- Access I is --------+-------- Very easy I' 7.4 19.2 17.0 5.5 10.6 --------+--------+-----+-----+-----+-----+----- Easy I' I 62.711s.911S.9\ 75.51 51.3 --------+--------+-----+-----+-----+-----+----- Moderatel' I 7.61 5.91 15.2\ 6.01 S.2 --------+--------+-----+-----+-----+-----+----- ~!ffiCU-I' I 6.51 10.21 26.61 2.21 9.4 --------+--------+-----+-----+-----+-----+----- Very " difficu- It 5.2 32.2 13.7 6.3 11.9 --------+--------+-----+-----+-----+-----+----- ~~:Ossi-I' I 10.6/ 13.41 8.61 4.61 S.7 --------+--------+-----+-----+-----+-----+----- ALL I' 1100.01100.01100.01100.01100.0 135 Table 7.8d ------------------------------------------------------- Bank loans Employment intervals -----------------+-----+-----+-----+-----+-----+----- Access I is --------+-------- Very easy I' 2.9 1.7 2.1 30.2 8.7 --------+--------+-----+-----+-----+-----+-----+----- 10.6 Easy I' / 4.41 23.9/ 79.41 35.6\ 77.21 51.3 --------+--------+-----+-----+-----+-----+-----+----- Moderate I, I 11.01 2.0/ 7.61 25.1/ .1 8.2 --------+--------+-----+-----+-----+-----+-----+----- ~!ffiCU-I' 1 10.01 10.71 3.41 9.11 10.91 9.4 --------+--------+-----+-----+-----+-----+-----+----- Very to difficu- It 23.8 53.3 7.5 3.2 11.9 --------+--------+-----+-----+-----+-----+-----+----- ImpoSSi-I' ble I I I I I I 47 . 9 8.4 . · · 8. 7 --------+--------+-----+-----+-----+-----+-----+----- ALL I' 1100.01100.01100.01100.01100.01100.0 136 Table 7:9a ------------------------------------------------- Overdraft Sector: Food IWOOd IT~~:-IMetal ALL -----------------+-----+-----+-----+-----+----- Access compared to last year is --------+-------- 5.6 7.5 19.1 SS.9 26.1 Better I' --------+--------+-----+-----+-----+-----+----- Worse I' I 36.91 22.91 39.41 7.21 24.4 --------+--------+-----+-----+-----+-----+----- The samel' r 57.61 69.61 41.SI 36.91 49.6 --------+--------+-----+-----+-----+-----+----- ALL I' 1100.01100.01100.01100.0 \100.0 Table 7:9b Overdrafts Employment intervals ~o- 17~0~ 2 1 - sl 1 ;5- 1501 + ALL -----------------+-----+-----+-----+-----+-----+----- Access compared to last year is --------+-------- 7.S 3.S 8.2 33.7 40.5 26.1 Better I' --------+--------+-----+-----+-----+-----+-----+----- Worse I' I 3s.41 17.31 6s.01 15.21 14.11 24.4 --------+--------+-----+-----+-----+-----+-----+----- The samel' \ 57.1\ 79.11 26.81 51.11 4s.31 49.6 --------+--------+-----+-----+-----+-----+-----+----- ALL I' 1100.01100.01100.01100.01100.01100.0 137 Table 7:9c ------------------------------------------------- Bank loans Sector: Food IWOOd IT~~:-IMetal ALL -----------------+-----+-----+-----+-----+----- Access compared to last year is --------+-------- 5.7 6.7 17.0 55.9 25.5 Better I' --------+--------+-----+-----+-----+-----+----- Worse I' I 12.11 22.01 37.21 6.61 16.4 --------+--------+-----+-----+-----+-----+----- The samel' 1 82.21 71.31 45.71 37.51 58.1 --------+--------+-----+-----+-----+-----+----- ALL 1% 1100.01100.01100.01100.01100.0 Table 7:9d Bank sources Employment intervals ~ 51 ~o- \2;5- 17;0~ 1501 + ALL 1 -----------------+-----+-----+-----+-----+-----+----- Access compared to last year is --------+-------- 10.8 4.1 9.7 32.7 38.0 25.5 Better I' --------+--------+-----+-----+-----+-----+-----+----- Worse I' 1 34.11 15.81 9.41 12.71 14.11 16.4 --------+--------+-----+-----+-----+-----+-----+----- The samel' 1 55.21 80.21 80.91 54.61 47.81 58.1 --------+--------+-----+-----+-----+-----+-----+----- ALL I' 1100.01100.01100.01100.01100.01100.0 138 Table 7:10a ------------------------------------------------- Sector: Trade credit Food IWOOd IT~~:-IMetal ALL -----------------+-----+-----+-----+-----+----- Access is ! --------+-------- Very easy I' 7.3 19.3 14.6 5.0 --------+--------+-----+-----+-----+-----+----- 9.8 Easy \' 1 71.51 23.31 58.2/ 50.91 53.4 --------+--------+-----+-----+-----+-----+----- Moderatel' I 4.21 19.9\ s.OI 11.9/ 10.4 --------+--------+-----+-----+-----+-----+----- ~!ffiCU-I' I o.s! 9.91 9.al 20.21 11.0 --------+--------+-----+-----+-----+-----+----- Very , difficu- It 5.2 23.8 2.2 9.4 9.3 --------+--------+-----+-----+-----+-----+----- !~:Ossi-l' I 11.21 3.a! 7.21 2.51 6.0 --------+--------+-----+-----+-----+-----+----- ALL I' /100.01100.0/100.01100.01100.0 139 Table 7:10b .. ------------------------------------------------------- Trade credit Employment intervals -----------------+-----+-----+-----+-----+-----+----- Access is I --------+-------- Very easy I' 0.2 7.8 7.7 20.7 8.7 --------+--------+-----+-----+-----+-----+-----+----- 9.8 Easy I' I 27.61 12.51 73.21 43.51 72.91 53.4 --------+--------+-----+-----+-----+-----+-----+----- Moderate I' I 8.51 19.21 7.4128.71 .1 10.4 --------+--------+-----+-----+-----+-----+-----+----- DiffiCU-I' It I I I I I I 8.1 12.7 6.4 · 18.5 11.0 --------+--------+-----+-----+-----+-----+-----+----- Very , difficu- It 18.8 40.6 3.S 6.3 9.3 --------+--------+-----+-----+-----+-----+-----+----- ImpOSSi-I' ble I I 36.8 7.3 I 1.8 0.8I I I · 6.0 --------+--------+-----+-----+-----+-----+-----+----- ALL I' 1100.01100.01100.01100.01100.0/100.0 140 Table 7:10c ------------------------------------------------- Sector: Trade credit Food IWOOd IT:~:-IMetal ALL -----------------+-----+-----+-----+-----+----- Access compared to last year is --------+-------- 5.9 25.5 4.6 49.1 24.9 Better /' --------+--------+-----+-----+-----+-----+----- Worse I' / 10.6/ 34.5/ 16.4/ 23.41 20.4 --------+--------+-----+-----+-----+-----+----- The samel' I 83.51 40.01 79.01 27.6/ 54.7 --------+--------+-----+-----+-----+-----+----- ALL I' /100.01100.01100.01100.01100.0 Table 7:10d Trade credit Employment intervals ~o- 17~0~ 2 1 - 51 1 ;5- 1501 + ALL -----------------+-----+-----+-----+-----+-----+----- Access compared to last year is --------+-------- 8.9 27.9 6.7 18.2 3S.0 24.9 Better 1\ --------+--------+-----+-----+-----+-----+-----+----- Worse \\ I 40.91 31.91 8.41 12.5/ lS.sl 20.4 --------+--------+-----+-----+-----+-----+-----+----- The samel' / 50.2/ 40.2/ 85.0/ 69.3/ 43.5/ 54.7 --------+--------+-----+-----+-----+-----+-----+----- ALL I' 1100.01100.01100.01100.0/100.0/100.0 141 Table 7:11a ------------------------------------------------- Informal groups Sector: Food /WOOd /T~~:-IMetal ALL -----------------+-----+-----+-----+-----+----- Access is I --------+-------- Very easy I' 19.0 2.7 16.5 11.2 --------+--------+-----+-----+-----+-----+----- Easy /' I 48.5/ 44.31 29.S/ 21.S/ 35.0 --------+--------+-----+-----+-----+-----+----- Moderatel' I 19.31 14.3/ 16.51 35.91 23.1 --------+--------+-----+-----+-----+-----+----- ~!ffiCU-I' I 10.91 2.sl 15.31 20.31 13.5 --------+--------+-----+-----+-----+-----+----- Very , difficu- It 3S.6 24.1 2.7 13.2 --------+--------+-----+-----+-----+-----+----- !~~OSSi-I' I2.31 .111.51 2.7/ 4.1 --------+--------+-----+-----+-----+-----+----- ALL I' /100.01100.01100.01100.01100.0 ------------------------------------------------- 142 Table 7:11b ------------------------------------------------------- Informal groups Employment intervals ~o- 17:0~ 2 1 - 51 1 ;5- + ALL 1501 -----------------+-----+-----+-----+-----+-----+----- Access is I --------+-------- Very easy I' 7.3 15.5 15.2 20.9 11.2 --------+--------+-----+-----+-----+-----+-----+----- Easy 1\ I 41.11 23.51 16.21 15.71100.01 35.0 --------+--------+-----+-----+-----+-----+-----+----- Moderate/' I 25.31 24.2/ .1 27.01 .1 23.1 --------+--------+-----+-----+-----+-----+-----+----- ~!ffiCU-I\ I 14.61 12.11 10.sl 1s.21 .1 13.5 --------+--------+-----+-----+-----+-----+-----+----- Very , difficu- It 6.3 24.7 19.5 1S.2 13.2 --------+--------+-----+-----+-----+-----+-----+----- !~~OSSi-I' I 5.51 .1 3s.31 .1 .1 4.1 --------+--------+-----+-----+-----+-----+-----+----- ALL I' 1100.01100.01100.01100.01100.01100.0 .. 143 Table 7:11c ------------------------------------------------- Informal groups Sector: Food IWOOd IT~~!-IMetal ALL -----------------+-----+-----+-----+-----+----- Access compared to last year is --------+-------- Better I' 0.7 19.1 21.S 58.5 27.1 --------+--------+-----+-----+-----+-----+----- Worse I' 1 12.11 0.91 32.41 1.31 11.4 --------+--------+-----+-----+-----+-----+----- The samel' I 87.21 SO.OI 45.SI 40.31 61.5 --------+--------+-----+-----+-----+-----+----- ALL I' 1100.0/100.0/100.01100.01100.0 Table 7:11d Informal groups Employment intervals ~o- 1 ;5- 17~0~ 1501 + ALL 2 1 - 51 -----------------+-----+-----+-----+-----+-----+----- Access compared to last year is --------+-------- 11.0 40.0 20.2 43.0 100.0 27.1 Better I' --------+--------+-----+-----+-----+-----+-----+----- Worse I' I 15.31 1.11 16.6123.01 .1 11.4 --------+--------+-----+-----+-----+-----+-----+----- The samel' I 73.71 58.91 63.11 34.11 .1 61.5 --------+--------+-----+-----+-----+-----+-----+----- ALL I' 1100.01100.01100.01100.01100.01100.0 1~ Table 7:12a ------------------------------------------------- Sector: Food IWOOd IT~~:-IMetal ALL -----------------+-----+-----+-----+-----+----- overdra- ft facilit- ies --------+-------- 76.0 41.3 72.1 78.1 70.2 Yes I' --------+--------+-----+-----+-----+-----+----- No I' I 24.01 58.71 27.91 21.9/ 29.8 --------+--------+-----+-----+-----+-----+----- ALL I' 1100.01100.01100.01100.01100.0 7:12b Employment intervals ~o- /2~5- 17:0~ /501 + ALL 1 - 5/ -----------------+-----+-----+-----+-----+-----+----- Overdra- ft facilit- ies --------+-------- 10.0 15.5 94.9 97.8 100.0 70.2 Yes I' --------+--------+-----+-----+-----+-----+-----+----- No I' 1 90.01 84.51 5.11 2.21 .1 29.8 --------+--------+-----+-----+-----+-----+-----+----- ALL I' 1100.01100.01100.01 100 · 0 1100.0/100.0 145 Table 7:13a ------------------------------------------------- Col laterals Sector: Food IWOOd IT:~:-IMetal ALL -----------------+-----+-----+-----+-----+----- Collate- ral --------+-------- 2S.S 7S.S 57.6 7.4 21.6 Land --------+--------+-----+-----+-----+-----+----- :~ipme-l' I 7.21 19.61 ./92.11 64.9 --------+--------+-----+-----+-----+-----+----- ~::~::y I' 12S.2/ .lls.11 .1 5.6 --------+--------+-----+-----+-----+-----+----- Other I' I 3s.SI 4.61 24.31 0.5/ 8.0 --------+--------+-----+-----+-----+-----+----- ALL I' 1100.01100.0/100.0/100.01100.0 Table 7:13b Collaterals Employment intervals ~o- 12~s- 17:0~ 1501 + ALL 1 - 51 -----------------+-----+-----+-----+-----+-----+----- N3. Collate- ral --------+-------- 97.3 43.5 61.0 58.1 Land I' 21.6 --------+--------+-----+-----+-----+-----+-----+----- Equ.ipme-l % nt 1 2.,1 35.sl 22.sl 19.51 90.31 64.9 --------+--------+-----+-----+-----+-----+-----+----- ~::~::y 1 % 1.1.1.1 9.91 4.21 5 ·6 --------+--------+-----+-----+-----+-----+-----+----- Other I' .120.7116.3112.51 5.51 S.O --------+--------+-----+-----+-----+-----+-----+----- ALL I' 1100.01100.01100.01100.01100.01100.0 146 Table 7:15a --------------------------------------------------------------------- Banks Sector: Food Wooa 1 Textile r Metal ALL -----------------+---------+---------+---------+---------+--------- Total N I 521 541 511 481 205 loans --------+---------+---------+---------+---------+--------- outstan- Nr ding I 0.21 0.31 0.41 1.61 0.8 --------+--------+---------+---------+---------+---------+--------- Total N 1 141 121 101 10 I 46 outstan- ding --------+---------+---------+---------+---------+--------- Ksh balance of loans due 22504092 7588868.0 58522056 92833119 74900133 --------+--------+---------+---------+---------+---------+--------- Total N I 111 111 91 91 40 value of --------+---------+---------+---------+---------+--------- collate- Ksh ral required 55575786 32896391 354863638 165688465 178290064 --------+--------+---------+---------+---------+---------+--------- Average N I 131 11/ 101 111 45 interest rate:' --------+---------+---------+---------+---------+--------- I 23.61 23.11 21.61 24.81 24.1 147 Table 7:15b --------------------------------------------------------------------- Banks Employment intervals 1 - 5 1 6 - 20 1 21 - 75 176 - 500 1 501 + -----------------+---------+---------+---------+---------+--------- Total N 521 511 541 411 7 loans --------+---------+---------+---------+---------+--------- outstan- Nr ding I 0.01 0.21 0.21 1.01 1.5 --------+--------+---------+---------+---------+---------+--------- Total N / 2/ 61 131 211 4 outstan- ding --------+---------+---------+---------+---------+--------- Ksh balance of loans due 192198.6 958238.5 5675726.8 14600548 109627985 --------+--------+---------+---------+---------+---------+--------- Total N 1 2/ 41 121 181 4 value of --------+---------+---------+---------+---------+--------- collate- Ksh ral required 655125.5 6439120.5 11377577 90792748 229611306 --------+--------+---------+---------+---------+---------+--------- Average N 1 21 61 121 211 4 interest rate: --------+---------+---------+---------+---------+--------- \ I 20.11 21.61 22.51 23.01 24.8 --------------------------------------------------------------------- (CONTINUED) · 148 ·. Banks ALL -----------------+--------- Total N 205 loans --------+--------- outstan- Nr ding I 0.8 --------+--------+--------- Total N 46 outstan- ding --------+--------- Ksh balance of loans due 74900133 --------+--------+--------- Total N I 40 value of --------+--------- collate- Ksh rOll required 178290064 --------+--------+--------- Average N I 4S interest rate:' --------+--------- I 24.1 149 Table 7:15c --------------------------------------------------------------------- Sector: Non-Banks Food Wood , Textile I Metal ALL -----------------+---------+---------+---------+---------+--------- Total N 1 481 491 491 451 191 loans --------+---------+---------+---------+---------+--------- outstan- Nr ding I 0.31 0.11 0.01 0.01 0.1 --------+--------+---------+---------+---------+---------+--------- Total N 1 41 31 31 41 14 outstan- ding --------+---------+---------+---------+---------+--------- Ksh balance of loans due 12938861 49869.6 6327540.0 932393.3 10334659 --------+--------+---------+---------+---------+---------+--------- Total N 1 31 21 31 31 11 value of --------+---------+---------+---------+---------+--------- collate- Ksh ral required 13162665 47163.7 15431606 17486.1 11186023 --------+--------+---------+---------+---------+---------+--------- Average N 1 41 31 31 31 13 interest --------+---------+---------+---------+---------+--------- rate: \ 1 1s.61 12.61 26.91 23.01 16.3 -----------------------------~--------------------------------------- 150 Table 7:15d --------------------------------------------------------------------- Non-Banks Employment intervals 1 - S I 6 - 20 1 21 - 75 176 - 500 I 501 + -----------------+---------+---------+---------+---------+--------- Total N S11 49/ 461 381 7 --------+---------+---------+---------+---------+--------- loans outstan- Nr ding I 0.1 I 0.1 I 0 ·1 I 0 ·1 I 0 ·2 --------+--------+---------+---------+---------+---------+--------- Total N 1 21 51 41 2I 1 outstan- ding --------+---------+---------+---------+---------+--------- Ksh balance of loans due 601496.8 41480.6 4022411.3 4457882.2 15000000 --------+--------+---------+---------+---------+---------+--------- Total N I 11 41 31 21 1 value of --------+---------+---------+---------+---------+--------- collate- Ksh ral required 2000000.0 58272.8 1299784.5 9879663.4 15000000 --------+--------+---------+---------+---------+---------+--------- Average N I 2/ sl 41 11 1 interest rate:' --------+---------+---------+---------+---------+--------- 1 29.91 13.11 18.51 31.01 13.0 (CONTINUED) 151 ----------------------------- Non-Banks I ALL -----------------+--------- Total N I 19l loans --------+--------- outstan- Nr ding 0.1 --------+--------+--------- Total N 14 outstan- ding --------+--------- Ksh balance of loans due l0334659 --------+--------+--------- Total N , 11 value of --------+--------- collate- Ksh ral required lll86023 --------+--------+--------- Average N I 13 interest rate: --------+--------- \ I 16.3 152 Table 7:16a ------------------------------------------------- Sector: Food IWOOd IT~~:-IMetal ALL -----------------+-----+-----+-----+-----+----- Borr. friends- /rltvs/- moneyle- nders/f- irms --------+-------- 13.1 23.3 7.1 6.7 11.4 Yes I' --------+--------+-----+-----+-----+-----+----- No I' I 86.91 76.71 92.91 93.31 88.6 --------+--------+-----+-----+-----+-----+----- ALL I' 1100.01100.01100.01 100 · 0 1100.0 Table 7:16b Employment intervals 1 - sl12~5- 17~0~ /501 + ALL ;0- -----------------+-----+-----+-----+-----+-----+----- Borr. friends- /rltvs/- moneyle- nders/f- irma --------+-------- 32.1 31.3 1.5 3.8 Yes 1\ 11.4 --------+--------+-----+-----+-----+-----+-----+----- No 1\ I 67.91 68.71 98.51 96.21100.01 88.6 --------+--------+-----+-----+-----+-----+-----+----- ALL 1\ 1100.01100.01100.01100.01100.01100.0 153 Table 7:17a ------------------------------------------------- Sector: ----------------------- Food IWOOd IT~~:-IMetal ALL -----------------+-----+-----+-----+-----+----- E3. Why borrow from informal source --------+-------- More % favorab- le interest rate 0.6 1.4 38.6 5.5 --------+--------+-----+-----+-----+-----+----- Easier % formali- ties 81.8 49.8 40.9 47.5 58.5 --------+--------+-----+-----+-----+-----+----- No % collate- ral required. 34.2 11.9 --------+--------+-----+-----+-----+-----+----- ~!;~!~;el' I 17.61 14.7/ .\ 52.51 21.6 --------+--------+-----+-----+-----+-----+----- Other \' \. \ · I 20.5\ · I 2.5 --------+--------+-----+-----+-----+-----+----- ALL \' 1100.01100.0\100.01100.01100.0 154 Table 7:17b ------------------------------------------------- Employment intervals ----------------------- 1 - 51 ~o- 1 ;5- 17~0~ 2 ALL -----------------+-----+-----+-----+-----+----- E3. Why borrow from informal source --------+-------- More , favorab- le interest rate 0.1 1.8 76.2 5.5 --------+--------+-----+-----+-----+-----+----- Easier , formali- ties 74.5 40.8 46.7 23.8 58.5 --------+--------+-----+-----+-----+-----+----- No , collate- ral required 32.3 11.9 --------+--------+-----+-----+-----+-----+----- :!;:!:!el' I .1 20.81 25011 53.3\ --------+--------+-----+-----+-----+-----+----- 21.6 Other 1' I 4 · 61 ·I ·1 . I 2 ·5 --------+--------+-----+-----+-----+-----+----- ALL I' 1100.01100.01100.01100.01100.0 '. 155 Table 7:18a ------------------------------------------------- Accounts Sector: Food IWOOd IT~~!-IMetal ALL -----------------+-----+-----+-----+-----+----- (a) A current bank account --------+-------- 84.3 56.3 67.8 86.5 77.5 Yes I' --------+--------+-----+-----+-----+-----+----- No I' I 15.71 43.71 32.21 13.51 22.5 --------+--------+-----+-----+-----+-----+----- ALL I' 1100.01100.01100.01100.01100.0 Table 7:1Sb Accounts Employment intervals ;0- 1 ;5- 17:0~ 1501 + ALL 2 1 - 51 -----------------+-----+-----+-----+-----+-----+----- (a) A current bank account --------+-------- 26.4 52.0 100.0 100.0 96.6 77.5 Yes I' --------+--------+-----+-----+-----+-----+-----+----- No I' 1 13.61 48.01 .1 .1 3.41 22.5 --------+--------+-----+-----+-----+-----+-----+----- ALL I' 1100.01100.01100.01100.01100.01100.0 156 Table 7:18c ------------------------------------------------- Accounts sector: Food IWOOd IT~~:-IMetal ALL -----------------+-----+-----+-----+-----+----- (b) A savings bank account --------+-------- 45.1 54.3 27.9 20.5 34.2 Yes I' --------+--------+-----+-----+-----+-----+----- No 1% 1 54.91 45.71 72.11 79.51 65.8 --------+--------+-----+-----+-----+-----+----- ALL 1% 1100.01100.01100.01100.01100.0 Table 7:18d Accounts Employment intervals 1 - 51 ~o- 12~5- 17~0~ 1501 + ALL -----------------+-----+-----+-----+-----+-----+----- (b) A savings bank account --------+-------- 76.2 68.7 60.0 11.6 Yes 1% 34.2 --------+--------+-----+-----+-----+-----+-----+----- No I' 1 23.81 31.31 40.01 88.41100.01 65.8 --------+--------+-----+-----+-----+-----+-----+----- ALL 1% 1100.01100.01100.01 100.01 100. 0 1100.0 157 Table 7:1Be ------------------------------------------------- Sector: Accounts Food IWOOd IT~~:-IMetal ALL -----------------+-----+-----+-----+-----+----- (0) A foreign currency account --------+-------- 36.9 B.9 50.6 70.4 47.4 Yes --------+--------+-----+-----+-----+-----+----- No I' 1 63.11 91.11 49.41 29.61 52.6 --------+--------+-----+-----+-----+-----+----- ALL I' 11 00. 0 1100.01100.01 1 00.01100.0 Table 7:1Bf Accounts Employment intervals ~o- 17;O~ 2 1 - 51 1 ;5- 1501 + ALL -----------------+-----+-----+-----+-----+-----+----- (c) A foreign currency account --------+-------- 0.1 0.2 13.6 56.4 100.0 47.4 Yes I' --------+--------+-----+-----+-----+-----+-----+----- No I' 1 99.91 99.81 86.41 43.61 .1 52.6 --------+--------+-----+-----+-----+-----+-----+----- ALL I' /100.01100.01100.01100.01100.01100.0 158 Table 7:18g ------------------------------------------------- Accounts Sector: Food IWOOd IT~~~-IMetal ALL -----------------+-----+-----+-----+-----+----- (d) A foreign bank account --------+-------- 0.6 0.2 0.9 Yes I' 0.4 --------+--------+-----+-----+-----+-----+----- No I' I 99.41 99.sl 99.11100.01 99.6 --------+--------+-----+-----+-----+-----+----- ALL 1\ 1100.01100.01100.01100.01100.0 Table 7:1Sh Accounts Employment intervals 1 - 51 ;0- 12;s- 17;0~lso1 + ALL -----------------+-----+-----+-----+-----+-----+----- (d) A foreign bank account --------+-------- Yes I' 0.2 3.1 0.4 --------+--------+-----+-----+-----+-----+-----+----- No I' 1100.01 99.SI 96.91100.01100.01 99.6 --------+--------+-----+-----+-----+-----+-----+----- ALL I' /100.01100.01100.01100.01100.01100.0 159 Table 7:19a ------------------------------------------------- Acq. assets Sector: Food IWOOd IT~~:-IHetal ALL -----------------+-----+-----+-----+-----+----- (a) shares in other enterpr- ises --------+-------- 4.1 6.8 24.5 9.0 10.4 Yes I' --------+--------+-----+-----+-----+-----+----- No \' \ 95.9\ 93.2\ 75.5/ 91.01 89.6 --------+--------+-----+-----+-----+-----+----- ALL \' \100.0\100.0\100.01100.0\100.0 Table 7:19b Acq. assets Employment intervals 1 - ~o- 12~5- 17~0~ 1501 + ALL 51 -----------------+-----+-----+-----+-----+-----+----- (a) shares in other enterpr- ises --------+-------- 0.4 5.7 10.5 31.9 6.0 10.4 Yes I' --------+--------+-----+-----+-----+-----+-----+----- No \' 1 99.61 94.31 89.5\ 68.11 94.01 89.6 --------+--------+-----+-----+-----+-----+-----+----- ALL \' 1100.0\100.0\100.01100.01100.01100.0 160 8. INFRASTRUCTURE In earlier reports in this series we have noted the poor state of Kenyan infrastructure. We also noted in the Introduction that there has been a certain increase in infrastructure investment in the last years, but according to our interviews, most firms do not see any improvements: Firms think that the situation has deteriorated further in all areas, that is, electricity, water, freight transport, transport for workers, telephones, handling facilities at air and sea ports, waste disposal, and security (Tables 8:1a- p). Perceptions about deterioration of infrastructure vary across firm sizes and sectors, depending on the intensity of use of different infrastructure services. The poor state of infrastructure continue to be a serious impediment to business activity and manufacturing. We also asked whether firms had acquired their own facilities to compensate for the poor provision of infrastructure services (Tables 8:2a-r). There was a big increase in the number of firms that had acquired or constructed facilities during the last year: 26% had invested in their own generators, 20% in their own wells or cisterns, 4% in their own communications systems, 5% in roads, 2% in transportation for workers, 21% in waste disposal facilities, 17% in their own labour for ports, 10% in freight transport, and 57% had increased security. More firms than before self-provided for security, generators, waste disposal, and labour for ports; the figures for 1995 are much higher than those in the previous round of interviews, indicating that firms are fed up and do not expect the government to solve these problems. Providing their own infra-structure facilities must have added to the firms' operational costs of the firms, reducing their competitiveness. In the country's efforts to increase efficiency and competitiveness, one of the major issues is thus the provision of infrastructure. There is no indication that recent efforts to restructure parastatal corporations have begun to have any positive impact in terms of improved infra structural services. The wide- spread self-provision of these services is a reflection of the potential that exists for privatisation: continued provision by the government through parastatals is not likely to lead to the required improvement. 161 Table 8:1a ------------------------------------------------- Sector: Food IWOOd IT~~:-IMetal ALL -----------------+-----+-----+-----+-----+----- (a) electri- city --------+-------- Improve-I' ment 24.8 10.9 1.9 4.8 10.9 --------+--------+-----+-----+-----+-----+----- ~~ange I' I 26.21 37.81 37.51 --------+--------+-----+-----+-----+-----+----- 7.41 23.6 ~::~~!O-I' I 49.01 51.31 60.61 87.81 65.5 --------+--------+-----+-----+-----+-----+----- ALL I' 1100.01100.01100.01100.01100.0 Table 8:1b Employment intervals ~o- 17~0~ 2 1 - 51 1 ;5- 1501 + ALL -----------------+-----+-----+-----+-----+-----+----- (a) electri- city --------+-------- Improve-I' ment 3.5 20.1 60.4 1.4 10.9 --------+--------+-----+-----+-----+-----+-----+----- No change --------+--------+-----+-----+-----+-----+-----+----- ~::~~!O-I' I 38.61 57.01 32001 84041 83.61 65.5 --------+--------+-----+-----+-----+-----+-----+----- . ALL' I' 1 · 0 1100.01100.01100.01100.0110000 100 162 Table 8:1c ------------------------------------------------- Sector: Food Iwood IT~~:-IMetal ALL -----------------+-----+-----+-----+-----+----- (b, water --------+-------- Improve-I' ment 2.7 6.6 3.8 3.6 3.9 --------+--------+-----+-----+-----+-----+----- :~ange I' 1 31.51 63.11 54051 40041 45.4 --------+--------+-----+-----+-----+-----+----- ~:!~~~O-I' 1 6Sos1 30021 41071 56011 50.6 --------+--------+-----+-----+-----+-----+----- ALL I' 1100.01100.01100.01100.01100.0 Table 8:ld Employment intervals -----------------+-----+-----+-----+-----+-----+----- (b) water I --------+-------- Improve-I' ment 2.6 14.0 3.1 4.5 3.9 --------+--------+-----+-----+-----+-----+-----+----- :~ange I' 1 62.11 70.31 21.5/ 34.91 40.21 45.4 --------+--------+-----+-----+-----+-----+-----+----- ~:~~~!O-I' 1 35.31 15.61 75.4/ 60.61 59.sl 50.6 --------+--------+-----+-----+-----+-----+-----+----- ALL I' 1100.01100.01100.01100.01100.01100.0 163 Table B: 1e ------------------------------------------------- Sector: Food IWOOd IT~~:-IMetal ALL -----------------+-----+-----+-----+-----+----- (c) freight transpo- rt --------+-------- Improve-I' ment 0.3 11.9 8.6 6.S 6.3 --------+--------+-----+-----+-----+-----+----- ~~ange I' 1 28.91 52.51 75.01 59.91 53.3 --------+--------+-----+-----+-----+-----+----- ~::~~!O-I' I 70.sl 35.61 16.41 33.31 40.4 --------+--------+-----+-----+-----+-----+----- ALL I' 1100.01100.01100.01 100 · 0 1100.0 Table S:lf Employment intervals 1 - 51 :0- 12~5- 17:0~ 1501 + ALL -----------------+-----+-----+-----+-----+-----+----- (c) freight transpo- rt --------+-------- Improve-I" ment 5.720.8 0.3 9.S 2.5 6.3 --------+--------+-----+-----+-----+-----+-----+----- :~ange \' 173.61 76.s\35.2141 001 52.21 5303 --------+--------+-----+-----+-----+-----+-----+----- ~::~~!O-I' 1 20.71 2.41 ~4.sl 49.51 45.31 40.4 --~-----+--------+-----+-----+-----+-----+-----+----- ALL I' 1100.01100.01100.01100.01100.01100.0 164 Table 8:19 ------------------------------------------------- Sector: Food Iwood IT~~:-IMetal ALL -----------------+-----+-----+-----+-----+----- Cd) transpo- rt for workers --------+-------- Improve-I' ment 26.1 23.8 6.6 10.6 16.8 --------+--------+-----+-----+-----+-----+----- :~angel' I 72.11 67.51 79.81 30.51 58.7 --------+--------+-----+-----+-----+-----+----- ~:~~~~o-I' 1 1.91 8.71 13.61 59.01 24.5 --------+--------+-----+-----+-----+-----+----- ALL I' 1100.01100.01100.01100.01 1 00.0 Table 8:1h Employment intervals 17~0~ 2 1 - 51 ;0- 1 ;5- 1501 + ALL -----------------+-----+-----+-----+-----+-----+----- (d) transpo- rt for workers --------+-------- Improve-I' ment 5.5 35.9 62.6 13.4 16.8 --------+--------+-----+-----+-----+-----+-----+----- :~ange I' 1 81.51 50.91 32.11 79.11 49.9/ 58.7 --------+--------+-----+-----+-----+-----+-----+----- ~:~~~~o-I' 1 12.91 13.31 5.31 7.51 50.11 24.5 --------+--------+-----+-----+-----+-----+-----+----- ALL /' 1100.01100.01100.0/100.01100.01100.0 165 Table 8: 1i ------------------------------------------------- Sector: IT~~:-IMetal ALL Food \WOOd -----------------+-----+-----+-----+-----+----- (f) telepho- nes --------+-------- Improve-I' ment 3 ·2 4·2 5 ·3 6·4 5·0 --------+--------+-----+-----+-----+-----+----- :~ange I' \ 26.61 55.11 58.51 48.7 54.0\ --------+--------+-----+-----+-----+-----+----- ~:!~~~O-I' I 70.21 41.81 39.61 35.11 46.3 --------+--------+-----+-----+-----+-----+----- ALL I' 1100.01100.01100.01100.01100.0 Table 8:1j 'Employment intervals 51 ~o- 1 ;5- 17~0~ /501 + ALL 2 1 - -----------------+-----+-----+-----+-----+-----+----- (f) telepho- nes --------+-------- Improve-I' ment 2.4 1.6 5.8 18.2 5.0 --------+--------+-----+-----+-----+-----+-----+----- No change I' --------+--------+-----+-----+-----+-----+-----+----- ~:!~~~O-I' 1 41.11 42.31 77.81 39.41 43.11 46.3 --------+--------+-----+-----+-----+-----+-----+----- ALL - I' 1100.01100.01100.01100.01100.01100.0 166 Table 8:1k ------------------------------------------------- Sector: Food /WOOd IT~~:-IHetal ALL -----------------+-----+-----+-----+-----+----- (g) handling facilit- ies, air & sea ports --------+-------- Improve-I' ment 4.6 3.0 28.4 0.3 7.7 --------+--------+-----+-----+-----+-----+----- :~ange I' I 26.11 53.91 29.01 17.01 25.6 --------+--------+-----+-----+-----+-----+----- ~:~~~~o-\' 1 69.3\ 43.01 42.61 82.71 66.7 --------+--------+-----+-----+-----+-----+----- ALL I' 1100.01100.01100.01100.0/100.0 Table 8:11 Employment intervals ~o- 17:0~ 2 1 - 51 1 ;5- 1501 + ALL -----------------+-----+-----+-----+-----+-----+----- (g) handling facilit- ies, air & sea ports --------+-------- Improve-I' ment 12.4 3.0 9.0 0.8 10.9 7.7 --------+--------+-----+-----+-----+-----+-----+----- :~ange I' I 2.51 87.61 91.51 56.4\ 32.21 --------+--------+-----+-----+-----+-----+-----+----- 25.6 ~:~~~~o-I' 1.1 5.5\ 34.71 67.0\ 86.6\ 66.7 --------+--------+-----+-----+-----+-----+-----+----- ALL I' 1100.01100.01100.0/100.01100.01100.0 167 Table 8:1m Sector: Food Iwood IT~~:-/Metal ALL -----------------+-----+-----+-----+-----+----- ( h) waste disposal --------+-------- Improve-I' ment 1.2 3.3 0.8 7.8 3.8 --------+--------+-----+-----+-----+-----+----- :~ange I' 1 48.01 40.71 67.51 22.51 41.5 --------+--------+-----+-----+-----+-----+----- ~:~~~!O-l' I 50.81 56.0/ 31.71 69.71 54.7 --------+--------+-----+-----+-----+-----+----- ALL \' 1100.0\100.01100.0\100.01100.0 Table 8:1n Employment intervals -----------------------~----- ~o- 17;0~ 2 1 - 51 1 ;5- /501 + ALL -----------------+-----+-----+-----+-----+-----+----- (h) waste disposal --------+-------- Improve-I' ment 3. 8 9.2 2 ·2 8.9 3.8 --------+--------+-----+-----+-----+-----+-----+----- :~ange I' 1 49.s1 34.01 14.71 51.21 43.61 41.5 --------+--------+-----+-----+-----+-----+-----+----- ~:~~~!O-I\ 1 46.sl 56.8\ 83.21 39.91 56.41 54.7 --------+--------+-----+-----+-----+-----+-----+----- ALL" I' \100.01100.0\100.01100.01100.01100.0 168 Table 8:10 ------------------------------------------------- Sector: Food IWOOd IT~~:-IMetal ALL -----------------+-----+-----+-----+-----+----- (i) security I --------+-------- Improve-I' ment 10.1 4.8 3.8 8.2 7.3 --------+--------+-----+-----+-----+-----+----- :~ange I' I 13.91 44.41 29.31 14.81 22.4 --------+--------+-----+-----+-----+-----+----- ~:~~~~o-I' I 76.01 50.91 66.91 77.01 70.3 --------+--------+-----+-----+-----+-----+----- ALL I' 1100.01100.01100.01100.01100.0 Table 8:1p Employment intervals 17;0~ 1501 + ALL 2 1 - 51 ;0- 1 ;5- -----------------+-----+-----+-----+-----+-----+----- (i) 1 security --------+-------- Improve-I' ment 25.2 13.1 2.7 1.6 7.3 --------+--------+-----+-----+-----+-----+-----+----- :~ange I' I 44.sl 57.sl 9.S/ 19.21 --------+--------+-----+-----+-----+-----+-----+----- 3.21 22.4 ~:~~~~o-I' I 30.0/ 29.21 S7.S/ 79.2/ 96.sl 70.3 --------+--------+-----+-----+-----+-----+-----+----- ALL I' 1100.01100.01100.01100.01100.01100.0 169 Table 8:2a ------------------------------------------------- Sector: Food lwood IT:~:-IMetal ALL -----------------+-----+-----+-----+-----+----- (a) generat- ors --------+-------- 32.2 Yes 4.5 46.4 26.2 --------+--------+-----+-----+-----+-----+----- No I' 1 67.81100.01 95.51 53.61 73.8 --------+--------+-----+-----+-----+-----+----- ALL I' 1100.01100.01100.01100.01100.0 Table 8:2b Employment intervals ~o- 12~5- 17:0~ 1501 + ALL 1 - 51 -----------------+-----+-----+-----+-----+-----+----- (a) generat- ors --------+-------- Yes \' O.S 7.8 19.8 59.5 26.2 --------+--------+-----+-----+-----+-----+-----+----- No I' 1100.0\ 99.51 92.21 80.21 40.51 13.8 --------+--------+-----+-----+-----+-----+-----+----- ALL I' 1100.01100.01100.01100.01100.01100.0 170 Table 8:2c ------------------------------------------------- Sector: Food /WOOd IT~~:-IMetal ALL -----------------+-----+-----+-----+-----+----- (b) wells/c- isterns --------+-------- 4.2 0.2 21.2 40.6 19.7 Yes I' --------+--------+-----+-----+-----+-----+----- No I' I 95.81 99.81 78.81 59.4\ 80.3 --------+--------+-----+-----+-----+-----+----- ALL I' 1100.01100.01100.01100.01 100 · 0 Table 8:2d Employment intervals sl ~o- 1;5- 17;0~ 1501 + ALL 2 1 - -----------------+-----+-----+-----+-----+-----+----- (b) wells/e- isterns --------+-------- Yes I' 0.8 3.8 22.6 41.2 19.7 --------+--------+-----+-----+-----+-----+-----+----- No I' 1100.01 99.21 96.21 77.41 58.81 80.3 --------+--------+-----+-----+-----+-----+-----+----- ALL I' 1100.01 100.01100.01100.01100.01100.0 · 171 Table 8:2e ------------------------------------------------- Sector: Food IWOOd IT~~:-IMetal ALL -----------------+-----+-----+-----+-----+----- (c) CB/Walk- ie- talkie/- Radio --------+-------- 2.8 1.3 15.5 1.0 4.4 Yes /' --------+--------+-----+-----+-----+-----+----- No I' / 97.21 98.71 84.51 99.0/ 95.6 --------+--------+-----+-----+-----+-----+----- ALL /' 1100.01100.01100.01100.01100.0 Table 8:2f Employment intervals 1 - sl ~o- 12 ;5- 17;0~ /501 + ALL -----------------+-----+-----+-----+-----+-----+----- (c) CB/Walk- ie- talkie/- Radio --------+-------- Yes I' 0.2 12.4 5.7 4.4 --------+--------+-----+-----+-----+-----+-----+----- No 1% 1100.01 99.81100.01 87.61 94.31 95.6 --------+--------+-----+-----+-----+-----+-----+----- ALL I' 1100.01100.01100.01100.01100.01100.0 172 Table 8:29 ------------------------------------------------- Sector: Food lwood IT~~:-IMetal ALL -----------------+-----+-----+-----+-----+----- (d) roads --------+-------- 8.1 0.5 10.3 0.1 4.5 Yes \' --------+--------+-----+-----+-----+-----+----- No I' \ 91.91 99.51 89.7/ 99.91 95.5 --------+--------+-----+-----+-----+-----+----- ALL I' 1 00.01100.01100.01100.01100.0 1 Table 8:2h Employment intervals -----------------+-----+-----+-----+-----+-----+----- (d) roads I --------+-------- Yes I' 0.8 2.3 16.7 2.5 4.5 --------+--------+-----+-----+-----+-----+-----+----- No I' 1100.01 99.21 97.71 83.31 97.51 95.5 --------+--------+-----+-----+-----+-----+-----+----- ALL I' 1100.01100.01100.01 1 00.01100.01100.0 173 Table 8:2i ------------------------------------------------- Sector: Food IWOOd IT~~:-IMetal ALL -----------------+-----+-----+-----+-----+----- (e) transpo- rtation for workers --------+-------- 5.3 1.6 Yes I' 0.4 1.9 --------+--------+-----+-----+-----+-----+----- No I' I 94.71 98.41100.01 99.61 98.1 --------+--------+-----+-----+-----+-----+----- ALL I' 1100.01100.01100.01100.01100.0 Table 8:2j Employment intervals ~o- 17:0~ 2 1 - 51 1 ;5- \501 + ALL -----------------+-----+-----+-----+-----+-----+----- (e) transpo- rtation for workers --------+-------- 6.4 0.8 0.8 2.4 Yes I' 1.9 --------+--------+-----+-----+-----+-----+-----+----- No I' I 93.61 99.21 99.21 97.61100.01 98.1 --------+--------+-----+-----+-----+-----+-----+----- ALL 1100.01100.01100.01100.01100.01100.0 174 Table 8:2k ------------------------------------------------- Sector: Food IWOOd IT~~!-IMetal ALL -----------------+-----+-----+-----+-----+----- (f) waste disposal --------+-------- 5.1 14.2 12.2 40.6 20.5 Yes I' --------+--------+-----+-----+-----+-----+----- No I' 1 94.91 85.al 87.SI 59.41 79.5 --------+--------+-----+-----+-----+-----+----- ALL I' 1100.01100.01 1 0 0 .0/100.01100.0 Table 8:21 Employment intervals ~o- /2;5- /7~0~ /501 + ALL 1 - s/ -----------------+-----+-----+-----+-----+-----+----- (f) waste disposal --------+-------- 3.6 1.2 S.6 9.2 46.S 20.5 Yes I' --------+--------+-----+-----+-----+-----+-----+----- No I' 1 96.41 98.SI 91.41 90.SI 53.21 79.5 --------+--------+-----+-----+-----+-----+-----+----- ALL I' 1100.01100.01100.01100.01100.01100.0 175 Table 8:2m ------------------------------------------------- Sector: Food IWOOd IT~~:-IMetal ALL -----------------+-----+-----+-----+-----+----- (9) load/un- load labor for the ports --------+-------- 0.1 13.3 Yes I' 42.9 17.3 --------+--------+-----+-----+-----+-----+----- No \' 1 99.91 86.71100.01 57.11 82.7 --------+--------+-----+-----+-----+-----+----- ALL I' 1100.01100.01100.01100.01100.0 Table 8:2n Employment intervals ~o- 1 ;5- 17~0~ 1501 + ALL 2 1 - 51 -----------------+-----+-----+-----+-----+-----+----- (9) load/un- load labor for the ports --------+-------- Yes 0.3 5.4 43.5 17.3 --------~--------+-----+-----+-----+-----+-----+----- No I' 1100.01 99.71100.01 94.6\ 56.51 82.7 --------~--------+-----+-----+-----+-----+-----+----- ALL I' 1100.0\100.01100.01100.01100.01100.0 176 Table 8:20 .' ------------------------------------------------- Sector: Food Iwood IT~~:-IMetal ALL -----------------+-----+-----+-----+-----+----- (h) freight transpo- rt --------+-------- 28.1 12.8 Yes I' 0.1 10.0 --------+--------+-----+-----+-----+-----+----- No /' I 71.91 87.21100.0/ 99.91 90.0 --------+--------+-----+-----+-----+-----+----- ALL /' 1100.01100.01100.0/100.01100.0 Table 8:2p Employment intervals ~o- 17:0~ 2 ·1 - 51 1 ;5- 1501 + ALL -----------------+-----+-----+-----+-----+-----+----- (h) freight transpo- rt --------+-------- Yes I' 0.9 26.9 10.0 --------+--------+-----+-----+-----+-----+-----+----- No I' 1100.0/ 99.1/100.01100.01 7J.l/ 90.0 --------+--------+-----+-----+-----+-----+-----+----- ALL I' /100.01100.01100.01100.01100.01100.0 177 Table 8:2q ------------------------------------------------- Sector: Food IWOOd IT~~:-IMetal ALL -----------------+-----+-----+-----+-----+----- (i) security I --------+-------- 54.0 40.7 44.2 72.9 56.5 Yes 1% --------+--------+-----+-----+-----+-----+----- No I' 1 46.01 59.31 55.SI 27.11 43.5 --------+--------+-----+-----+-----+-----+----- ALL I' 1100.01100.01100.01100.01100.0 Table 8:2r .. Employment intervals 17~0~ 1501 + ALL 2 1 - 51 ;0- 1 ;5- -----------------+-----+-----+-----+-----+-----+----- (i) security I --------+-------- 28.1 18.3 23.0 67.8 91.1 56.5 Yes I' --------+--------+-----+-----+-----+-----+-----+----- No I' 1 71.91 81.71 77.01 32.21 8.91 43.S --------+--------+-----+-----+-----+-----+-----+----- ALL I' 1100.01100.01100.01100.01100.01100.0 178 9· REGULATIONS