89 percent of Kathmandu street vendors surviving on loans, study finds

The Kathmandu Metropolitan City’s crackdown has severely affected the livelihood of street vendors, a study has revealed.

The study conducted by Center for Informal Economy and Hope for Change Nepal found that many street vendors are having to seek loans to sustain their daily life, as they can no longer ply their trade.

One hundred and thirty street vendors were interviewed for the study, and nearly 89 percent of them said that they were borrowing money to live.

The study, which was presented during an event in Kathmandu, also noted that only a small minority of street vendors have relocated their businesses elsewhere, while some still sell goods on streets hiding from the municipal police.

Nearly 68 percent of the study participants considered street trading their main occupation. 

In terms of the types of products sold on streets, the study found that 50 percent of vendors sold fruits, 25 percent sold clothing and accessories, 10 percent sold footwear, while others sold vegetables, food snacks and beauty products.

Approximately 44 percent of sidewalk business customers belong to the low and middle-income classes, with 17.7 percent falling into unspecified categories.

Furthermore, the study revealed that the KMC failed to return the goods confiscated from street vendors. It was also found that 95 percent of the vendors had not registered their businesses, while 56 percent were unaware of the business registration process. It was also found that nearly 55 percent of the street vendors were aware about the KMC’s monitoring efforts, whereas about 45 percent were uninformed.

To conduct the study, input was gathered from street vendors, consumers, local households, metropolitan police, ward chairpersons, and provincial assembly lawmakers from Bagmati province through various channels. The study encompassed the perspectives of participants from 83 municipalities across 39 different districts throughout the country.

The removal of street vendors has been positively received by pedestrians and local households. They  believe that the city’s actions have led to quieter and cleaner streets, improved walkability, reduced traffic, and less pollution.