The informal sector of urban Kenya plays a significant role in the economy, yet its psychological dynamics remain understudied. A mixed-methods approach combining qualitative interviews and quantitative surveys was employed. Data were collected from 300 participants across three urban centers in Kenya. Participants in the informal sector reported higher levels of work-related stress (45%) compared to formal sector workers (28%), with a notable theme regarding inadequate social support networks. The study highlights significant disparities in psychological well-being between sectors, particularly among informal sector employees. Policy makers should prioritise strengthening social safety nets and mental health services for the urban poor in Kenya’s informal sector.