Analysis of the Factors Causing the Persistence of Street Vending in the City of Kigali, Rwanda

Abstract

This paper mainly analyzes the factors causing persistence of street vendors despite decision taken by Kigali city council. Given the emerging social classes, globalizations and loss of values (local currency) against the trading dollar, most of the petty traders are facing challenges to meet the legal trading requirements, including tax obligations, small traders opt to street vending which might be easy to evade tax and also avoid paying renting cost. It has been argued that vending attracts people who have limited opportunities for obtaining formal employment and street vending is increasingly becoming an option. However, the City of Kigali with Vision 2050 to be a green city, master plan defines the location of traders which doesn’t much with petty trading, yet a certain social class of "have not" still demands to fit within the context. According to findings street vendors’ majority with 54.6% said “the unemployment is main cause ". Suggested to resolve unemployment issue by creating more jobs. 10.3% of respondents said "Main cause for non-compliance is extreme poverty". Findings indicates impact like air pollution and lack of hygiene as confirmed by 17.5% of respondents; and fiscal losses due to undeclared economic activities on rate of 21.6%. Consensual measures taken to end street vending is includes regularization of trade policy, inclusive doing business policy in a given free min-markets by government for street vendors and startups financial support, however consensual measures had an impact which is less compared to the output. Recommendations shall be considered as sustainable solutions.