Poverty Alleviation and strategy for Revitalizing Agriculture (SRA)

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1 Poverty Alleviation and strategy for Revitalizing Agriculture (SRA) Tegemeo Institute May 5th, 2005 Paul Gamba

2 Poverty Estimates in Kenya Year Poverty incidence percent nationwide 1981/92 Rural: 46.3 percent Urban: 29.3 percent 1997 Rural: 46.8 percent Urban: 28.9 percent 2000 Rural: 52.9 percent Urban: 49.2 percent RURAL POVERTY DYNAMICS 2

3 Definition of Poverty Quantitative vs. Qualitative Definition for this study: Total household income from all sources falling below inflation-adjusted poverty line as defined by 1997 Welfare Monitoring Survey = 927 Ksh per person in 1997 = 1085 Ksh per person in 200 RURAL POVERTY DYNAMICS 3

4 Establishing Poverty Categories Frequency Percent Non poor Transitory poor Chronic poor Total RURAL POVERTY DYNAMICS 4

5 Distribution of Poverty within Agro-Ecological Zones Zone Non poor Transitory poor Chronic poor Group Total Coastal Lowlands Eastern Lowlands Western Lowlands Western Transitional High Potential Maize Zone Western Highlands Central Highlands Marginal Rain Shadow RURAL POVERTY DYNAMICS 5

6 Factors Distinguishing the Poor from the Non-Poor

7 1. Landholding Size Cultivated area per household Mean area cultivated Non poor Transitory poor Chronic poor Poverty Category RURAL POVERTY DYNAMICS 7

8 2. Education Non poor Transitory poor Chronic poor Total None Primary unfinished Finished primary Some secondary Form Form 6 / Post secondary st degree and above RURAL POVERTY DYNAMICS 8

9 3. Female Headed Households Total income (Ksh per household) Male 130, ,892 Female 94, ,103 RURAL POVERTY DYNAMICS 9

10 Income Levels and Sources of Rural Households by Education and Landholding Size Category, 1997 and 2000 Quartiles of Households Ranked by Landholding Size Per Capita Smallest (mean 0.08 ha per capita) Second Quartile (mean 0.17 ha per capita) Third Quartile (mean 0.29 ha per capita) Highest (mean 0.73 ha per capita) Education Group* (1=lowest; 3=highest): Sample size (n) Land access (average for 97 & 00) Land access per capita Female headed households (%) Per capita income Crop income share (%) Livestock prod income share (%) Off-farm income share (%) Of which: remittances Business income Non-ag wage labour Ag-wage labour Crop income per hectare (US$) RURAL POVERTY DYNAMICS 10

11 4. Receipt of Agricultural Credit Percent Percent Non poor Received credit Transitory poor Received credit Chronic poor Received credit RURAL POVERTY DYNAMICS 11

12 Receipt of credit by zone and poverty category in 1997 Non poor Transitory poor Chronic poor Total % of households receiving agricultural credit Coastal Lowlands Eastern Lowlands Western Lowlands Western Transitional High Potential Maize Zone Western Highlands Central Highlands Marginal Rain Shadow Total RURAL POVERTY DYNAMICS 12

13 5. Crop Productivity by Poverty Category Total value of crop output per acre Poverty Category Non-Poor 105, ,941 Exits 29, ,225 Entries 69,687 37,637 Chronic Poor 20,314 29,525 RURAL POVERTY DYNAMICS 13

14 Summary Factors Associated with Rural Poverty: Limited Access to Land Low Education Female-Headed Households Lack of Off-Farm Income Low Crop Productivity Lack of Access to Ag. Credit RURAL POVERTY DYNAMICS 14

15 IMPLICATIONS FOR POLICY Policies to Improve Poor Rural Households Access to Land Education a long run option only Focus on Investing in Productivity Enhancing Agricultural Technology Develop rural financial services for smallholder farmers RURAL POVERTY DYNAMICS 15

16 Strategy For Revitalizing Agriculture Motivated by the declining performance of the Agricultural Sector Originates from ERS, PRSP and KRDS Involves the core Agricultural and Rural development Ministries RURAL POVERTY DYNAMICS 16

17 Overall Objective Raise household incomes, Create Employment and ensure food and Nutrition Security RURAL POVERTY DYNAMICS 17

18 Aims of SRA Raise Productivity Increase private sector participation Review Legislation Encourage Diversification Improve Governance Promote regional Co-operation RURAL POVERTY DYNAMICS 18

19 Creation of Enabling Environment Policy Reforms Divestment Restructuring of ministerial functions Market liberalization Increased stakeholder participation RURAL POVERTY DYNAMICS 19

20 Legal and Regulatory Reforms Amalgamation of existing legislation Self-regulation Collaboration with other sectors RURAL POVERTY DYNAMICS 20

21 Institutional Reforms Research and Extension Input Supply Animal Health and Plant Protection services Parastatal Reform Capacity building Co-operative Agricultural taxation RURAL POVERTY DYNAMICS 21

22 Value Addition and Marketing Development of Arid and Semi-Arid Lands Food and Nutrition Security Infrastructure Macroeconomic stability Financial services RURAL POVERTY DYNAMICS 22

23 Security Health Gender and empowerment Natural resources and Environmental management Early Warning Systems RURAL POVERTY DYNAMICS 23

24 Conclusion Poverty Alleviation is embedded in SRA Need to develop Programmes that address specific poverty categories The challenge is in Implementation RURAL POVERTY DYNAMICS 24

25 Thank you RURAL POVERTY DYNAMICS 25

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