Licensing Women into the Economy: A Gendered Review of Kenya National Trade Policy and Socio-economic Empowerment of Women Traders in Nairobi County

Globally, trade has proven to be a key promoter of Sustainable Development Goal number 5, which aims to achieve gender equality and womens empowerment. Women dominate the informal trade sector, through which they contribute to growth and development. While regional and national trade frameworks have adopted gender-responsive reforms, licensing practices remain poorly aligned with the lived realities of women. The interface between trade policies and the realities of women traders shows a critical gap in how licensing creates a systemic barrier to their formalization, decent work, and economic mobility. The World Trade Organisation (WTO) and the African Unions trade framework, African Continental Free Trade Area (AfCFTA), advocate for gender-responsive trade policies. Subsequently, Kenya National Trade Policy (KNTP), undertakes to mitigate gendered barriers to women traders. Despite progressive policy frameworks, licensing complexities continue to disadvantage women entrepreneurs and remain a critical hurdle to inclusive formal trade. This literature review examines the implications of trade licensing strategies under the KNTP on the socio-economic empowerment of women traders in Nairobi County. Anchored in feminist political economy, the review synthesizes empirical and policy literature on gendered informality in urban trade. Key themes include licensing as a structural and cultural barrier, informality as a rational livelihood strategy, the role of gender norms in shaping compliance, and the implications of weak inter-agency coordination. The review reveals a persistent gap between policy intent and implementation, underscoring the limitations of current formalization strategies. It argues for a shift toward simplified, localized, and gender-anchored licensing reforms that prioritize accessibility, care-sensitive infrastructure, and the inclusion of womens voices in trade governance. The study contributes to current policy debates on inclusive trade, institutional reform, and economic empowerment for women in the informal economy.