What does poverty look like in Kenya?

Kenyan Economy Expanding but Unequal 

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According to USAid, with a GDP of $95 billion, Kenya recently reached lower-middle income status, and has successfully established a diverse and dynamic economy. In the decade between 2005 and 2015, Kenya's extreme poverty rate fell from 46.8 percent to 36.1 percent (World Bank). However, USAid reports that two-thirds of Kenyans live in poverty, making less than $3.20 a day. As a result, the majority of Kenyans, particularly women and girls, can be considered chronically vulnerable. 

 

“Kenya’s economy has shown considerable resilience to the enormous shock of the pandemic, and this year is expected to post one of the stronger growth rebounds in the region thanks to diversified sources of growth and sound economic policies and management,” said Keith Hansen, World Bank Country Director for Kenya. “However, poverty has increased, and the buffers and coping mechanisms of households, firms, and the public finances have been depleted.”

 

Informal Settlements: Snapshot

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According to the World Bank, Kenya’s fast-paced economy has led to rapid urbanization,  with the majority of urban residents being absorbed into informal settlements. Informal settlements are areas with insecure residential status. They’re very overcrowded, roughly 60 percent of Nairobi’s 4.7M population occupy only 5 percent of the city’s footprint. Housing is made of poor quality building materials – like mud or metal sheets – and they often lack basic amenities like drinking water, electricity and sewage disposal.

 

Conflict, crime, substance abuse, unsupported schools, domestic abuse and child endangerment are systemic issues. 

 

“The glaring inequality [in Kenya's informal settlements] causes its own problems and tensions, one manifestation of which is urban violence and insecurity.” -The World Bank

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Rural Divide: Snapshot

 

Rural poverty in Kenya is deeply entrenched, with women and girls facing the most severe disadvantages. Progress in poverty reduction has been uneven, and persistent gender inequalities in education, asset ownership, and economic participation hinder further gains. Effective poverty alleviation must prioritize women’s empowerment, access to education, and equitable resource distribution to achieve inclusive and sustainable development.

 

According to the Kenya Poverty and Equity Assessment 2023, poverty in rural areas declined from 49.7% in 2005/06 to 37.0% in 2019, compared to a drop from 34.5% to 26.0% in urban areas over the same period.

 

Despite notable progress in poverty reduction over the past two decades, rural poverty rates remain substantially higher than those in urban regions, and the majority of Kenya’s poor still reside in rural areas.

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Key drivers of rural poverty include:

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• Limited access to quality education beyond primary school, especially in arid and semi-arid regions.

• Inequality in access to economic and social goods, services, and participation in political processes.

• Unfavorable climatic conditions, such as droughts, which disproportionately affect rural livelihoods dependent on agriculture.

• Insufficient job opportunities and underdeveloped infrastructure (water, sanitation, electricity).

• Large family sizes and high dependency ratios, which strain household resources.

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Gender Impact of Rural Poverty

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The gendered impact of rural poverty in Kenya is profound, with women bearing a disproportionate burden:

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• Prevalence and Disparities: Women constitute over 60% of the rural population, where poverty rates are highest. The prevalence of absolute poverty among rural women is estimated at 49.1%, higher than among their urban counterparts6. A study found that 44% of all women in Kenya are poor in at least one dimension, and 95% of multi-dimensionally poor women live in rural areas5.

• Access to Resources and Opportunities: Rural women face greater disadvantages in accessing political, economic, and social opportunities. They are less likely to own assets, have access to productive resources, or participate in decision-making processes67.

• Education and Employment: Educational attainment is a significant factor—women with secondary or higher education are much less likely to be poor. However, rural girls are less likely to transition to secondary school, limiting their future economic opportunities157. Women are also less likely to be employed and tend to earn less than men, with these disparities more pronounced in rural areas7.

• Unpaid Labor and Family Responsibilities: Rural women perform more unpaid labor, including caregiving and household work, which restricts their ability to engage in income-generating activities7. Larger family sizes and higher numbers of young children increase the probability of poverty, as women spend more time on childcare and less on paid work5.

• Vulnerability to Shocks: Rural women are particularly vulnerable to climate shocks and economic downturns, given their reliance on agriculture and limited access to adaptive resources6.

• Policy Responses: Addressing rural poverty among women requires targeted interventions, such as improving access to education, supporting female entrepreneurship, enhancing infrastructure (water, sanitation, electricity), and integrating gender considerations into policies on agriculture and climate adaptation

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Learn more about multidimensional poverty and the global poverty crisis. ​​