Category: My Blog

Globalization has negatively impacted Kenya over the years. Trade between Kenya and developed countries is often not practiced on equal terms. In terms of goods and services, Kenya exports less than it imports. Developed countries are often able to influence trade outcomes, and protect their economic interest. However, this is not the case with developing countries such as Kenya. Some of the unfair trade practices by developed countries include high tariffs on imports from developing countries relative to other developed countries. This negatively impacts developing countries by raising the prices of their goods and services. Consequently, this globalization-induced pricing issue causes income to fall sharply and further contributes to increasing poverty levels in Kenya.

Population pressure has also been a major contributor to poverty in Kenya. When a country experiences a higher population growth than it can sustain, it is unable to provide basic services for its citizens. To ensure population control, there is a need to increase education about family planning among households in Kenya. In addition, resources need to be optimally utilized to meet the demands of its population and leave a surplus for export.

Inadequate employment opportunities–especially among the youth who constitute the larger share of the population–are a major contributor to poverty in Kenya. To reduce unemployment, the country will require strong fiscal and monetary policy investment and management. The country will also need infrastructural developments to boost service and transportation delivery, as well as more affordable housing. A strong selection of political leadership will be crucial in boosting infrastructural growth, and tourism leading to more employment opportunities. Political stability is a key factor in a nation’s economic growth and level of employment thereof, that’s why it’s important to have the correct selection of leaders.

Strong political leaders can also play a crucial role in influencing the international trade disadvantage discussed above, by pushing for more favorable terms of trade with developed nations. Also, the provision of better agricultural infrastructure would allow local farmers to compete with imported products and improve employment prospects. A thriving Kenyan sector would mean abundant employment opportunities for locals. In addition, there is a need for multi-sectoral and targeted interventions to improve the living standards of the marginalized regions of the population, particularly the NEDI counties. Social safety nets can also play a vital role in building human capital and protecting the most vulnerable communities in Kenya, leading to higher productivity.

Kenya’s robust growth over the last decade has resulted in a remarkable poverty reduction. This puts the country in a unique position to eliminate poverty in the coming decades. In addition to sustaining growth, Kenya needs to put in place policies that translate growth to poverty reduction. Kenya needs to focus on marginalized communities such as the NEDI counties and the youth to win in the fight in poverty reduction.…

It is often argued that poverty in urban areas is under-estimated. For example, a study of the multi-dimensional urban poverty by KIHBS has shown that the multi-dimensional incidence of poverty is lower in Nairobi (approximately 27%) and its environs than in other cities such as Kisumu (approximately 46%), and Mombasa (approximately 44%). However, there are significant poverty disparities within these cities. For instance, in Nairobi, the incidence of multi-dimensional poverty in Laini saba and Korogocho areas is 60%, while the number is only 5% in Kilimani and Kileleshwa. Gender gaps also exist across poverty levels in urban centers. Households with female heads are more likely to be poor than households with male heads. Comprehending these spatial inequalities in multi-dimensional poverty is essential in improving the focus of anti-poverty programs.

At the county level, poverty reduction has also been disparate. For instance, counties in the North and North-Eastern parts of Kenya suffer from stagnation, and higher poverty rates, and need multi-sectoral support to improve living standards. If nothing is done, inadequate access to basic services in these regions can lead to long-term consequences, especially in developing human capital. These regions have lower than average national educational enrollment rates, particularly in secondary education. Health care utilization and access in these areas are also relatively low as compared to other regions in the country. Vaccination rates of some North-Eastern Development Initiative (NEDI) counties reach approximately 40 percent, compared to over 90 percent in Central province. Inadequate access to healthcare alongside extremely high fertility rates are some of the reasons why these counties have the highest maternal mortality rates in Kenya. A child in NEDI counties stands a higher chance of being born poor and remaining in poverty, without getting the opportunity to build their productive potential.

If Kenya proceeds with its present growth path, poverty levels will remain above the 20 percent mark by 2030. The main obstacle is not so much to increase the growth rate, but instead to ensure that the gains from economic growth are equally distributed across all segments of the population. The Kenya Gender and Poverty Evaluation offers an in-depth analysis of the nature and evolution of poverty and identifies many policy areas that can facilitate quicker poverty reduction in the near future.

Causes of Poverty in Kenya

Various factors contribute to poverty in Kenya such as corruption, unemployment, failing education system, rural-urban migration, tribalism, and child labor, among others. There are inadequate opportunities in Kenya, and this has left many citizens in desperation, leading to drug use and crime. Kenya has a significant amount of under-utilized resources. One of the greatest resources the country is endowed with is human capital and a favorable agricultural climate. If optimally utilized, these resources can pave the way for poverty eradication in the wider Kenya region. To alleviate poverty in rural areas in Kenya, it’s essential to boost agricultural productivity through high-quality extensions services that allow farmers access to better inputs and best farming practices.

One of the major challenges to the agricultural sector is poor water systems. Kenya is home to several natural lakes, which if properly utilized would provide sufficient water for agricultural projects. Agricultural produce would be abundant, and there would be enough surplus for export. The amount previously spent on importing food could now be used to fund industrial projects. However, if the provision of agricultural water is not addressed, poverty will continue to disproportionately affect rural communities in Kenya.…

Over the last decade, Kenya has been widely covered in global economic news. M-PESA, the world’s first mobile banking technology, was invented in Kenya, and the country continues to be a vibrant technology hub in Africa. The growth between 2000 and 2009 was quite volatile, averaging 3.6 percent every year, and developing a downward trajectory following the 2007 presidential elections, PEV (post-election violence), protracted drought, as well as the global financial crisis of 2008. Things took a turn in the years following 2010, with growth averaging above 5%, which is higher than the average in Sub-Saharan Africa. The period following 2010 has also witnessed rising per capita incomes for the country, and Kenya attained lower-middle-income status in 2014. The strong growth during this period has been attributed to the country’s service sector, primarily in banking and mobile telecommunications. However, despite these gains, various challenges continue to affect Kenya’s economic promise chief among them–poverty.

Kenya’s economic growth over the last decade has translated into gains in the fight against poverty, with over 4 million Kenyans escaping poverty during the same period according to the World Bank. However, a closer inspection reveals that not every section of the population benefited from this remarkable growth. The poorest people in Kenya inhabit rural areas where poverty rates are higher, and per capita expenditures lower than urban areas. However, the proportion of neer-poor is consistent across urban and rural areas. When defined as non-poor individuals living on less than two times the poverty line, there are approximately 43% to 44% near-poor individuals in urban and rural areas in Kenya. The percentage reduces to about 26% to 28% when defined under a more strict threshold of 1.5 times the poverty line. In other words, the vast majority of Kenyans, close to 80 percent, are either near the poverty line, or income poor. Most don’t have access to reliable food or even a place to sleep. A focus on indebted servitude diagnosis, alongside the near-poor, is essential in assessing how to alleviate poverty, and ensuring that households that are more vulnerable to poverty are not impoverished overtime.

Statistics by the Kenya Integrated Household Budget (KIHBS) also show variations in the poverty gaps and their magnitude. Poverty continues to be more prevalent in rural areas. The smallest proportion of income poor is found in peri-urban regions. While the poverty index is a measure of the number of people below the poverty line, the poverty gap measures the difference from the poverty line and shows the number of transfers required to move households above that line. The poverty gap in the East-African country shows that the income-poor families in rural regions have a higher difference from the poverty line in comparison to their counterparts in urban regions. Poverty distribution is also more severe in rural regions, which comprises the majority of the country’s poorest populations.…