The Use of Block Chain in the Informal Distributed Manufacturing Industry in Kenya

Abstract

In the last decade, research and development around distributed ledger technology (DLT) has grown exponentially. The financial services industry has been revolutionized by the explosion of cryptocurrencies like Bitcoin and Ethereum. Researchers have taken the principles used in these cryptocurrencies and are using them to develop other DLTs in various fields. This study explores how blockchain can be used to provide traceability, visibility , and transp a rency in the Kenyan informal distri buted manufacturing indus try. SOKO, an aggregator of artisans spread all over Nairobi, was the case study used. Purposive and convenience - based were the sampling methods used. 48 SOKO supply chain employees and active artisans were the sample population. Interviews and observations were data collection methods used. Content analysis, a qualitative data analysis method, was used to capture emerging and predetermined themes. Google sheets and Dovetail were the tools used for this study. This paper finds that the use of the immutability and proof of origin features of blockchain greatly enhances traceability within a supply chain. It is imperative that the granular information collected should be intuitive and accessible to all parties to enhance visibility. Amplified traceability and visibility greatly improved transparency and accountability within the SOKO ecosystem. A pivotal recommendation for future research is the usage of unit-base d tagging techno logies e.g. barcodes, QR codes , or RFID. The combined use of such technologies and blockchain would achieve the highest level of traceability, especially when working with diverse producers who produce similar products.