World Bank: More than 40 per cent of Kenyans live in extreme poverty

The World Bank State of Economic Inclusion Report 2021 indicates that over forty per cent of Kenyans currently live in extreme poverty.

According to the findings, Kenya is ranked the third poorest lower-middle-income country globally. 

Pakistan and Egypt are also categorised as lower-middle income economies but Kenya's poverty level is approximately 10 times higher than the level in the two countries. 

Zambia is ranked as the poorest with 61 per cent of its citizens living in poverty. Nigeria and Côte d'Ivoire follow at 58 per cent and 30 per cent respectively. 

Although Zimbabwe has a low poverty rate of 23 per cent, it's poverty headcount is high at about 80 per cent of it's total population.

The findings also show that away from the African continent, India has the highest poverty rate at 22 per cent taking seventh place. Bangladesh follows at 20.5 per cent.

The progress in poverty reduction in Kenya was eroded by the economic and social disruptions instigated by the Covid-19 pandemic. 

According to the World Bank economic report in November 2020 regarding Kenya, extra two million Kenyans were pushed into poverty by the pandemic which increased poverty levels by four percentage points.

World Bank Senior Economist in the Poverty & Equity Global Practice Utz Pape said, “Kenya had made considerable progress with poverty reduction over the last years, but the pandemic destroyed the livelihoods of many Kenyans.”  

“A swift and well-targeted response is needed to protect livelihoods and avoid trapping more people in long-term poverty,” the senior economist added. 

A new group of ‘newly’ poor Kenyans with different demographic characteristics emerged due to the pandemic, the economic update noted. 

The report notes, “Kenya’s poor population was predominantly rural and less well educated pre-Covid-19, however, the shock of Covid-19 created a new group of ‘newly’ poor who tend to be urban with household heads who are younger and more educated." 

The State of Economic Inclusion Report 2021 noted that by 2030 an estimated 479 million people are projected to be living in extreme poverty globally and the share of global poor living in fragile and conflict-affected countries is expected to reach 50 percent by 2030.

However, the World Bank stated that actions in light of the Sustainable Development Goals to end poverty in all its forms everywhere by 2030 and to address inclusive and sustainable growth are underway.

Kenya remains the economic hub of East Africa despite the high poverty levels. The country is the first East African Community member state to achieve the middle-income status.