Poverty Alleviation and strategy for Revitalizing Agriculture (SRA) Tegemeo Institute May 5th, 2005 Paul Gamba
Poverty Estimates in Kenya Year Poverty incidence 1972 30 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
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
Establishing Poverty Categories Frequency Percent Non poor 470 33.7 Transitory poor 433 30.1 Chronic poor 535 37.2 Total 1437 100.0 RURAL POVERTY DYNAMICS 4
Distribution of Poverty within Agro-Ecological Zones Zone Non poor Transitory poor Chronic poor Group Total Coastal Lowlands 15.2 50.6 34.2 100 Eastern Lowlands 36.5 35.3 28.2 100 Western Lowlands 9.1 22.3 68.6 100 Western Transitional 22.4 41.8 35.8 100 High Potential Maize Zone 39.2 24.4 36.4 100 Western Highlands 10.8 30.9 58.3 100 Central Highlands 64.3 23.6 12.0 100 Marginal Rain Shadow 22.9 43.8 33.3 100 RURAL POVERTY DYNAMICS 5
Factors Distinguishing the Poor from the Non-Poor
1. Landholding Size Cultivated area per household Mean area cultivated 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 Non poor Transitory poor Chronic poor 1997 2000 Poverty Category RURAL POVERTY DYNAMICS 7
2. Education Non poor Transitory poor Chronic poor Total None 20.7 27.6 51.7 100 Primary unfinished 18.1 24.6 57.3 100 Finished primary 26.4 30 43.5 100 Some secondary 27.5 32.9 39.6 100 Form 4 44.5 32.9 22.6 100 Form 6 / Post secondary 57.8 29.4 12.8 100 1st degree and above 64.7 29.4 5.9 100 RURAL POVERTY DYNAMICS 8
3. Female Headed Households Total income (Ksh per household) 1997 2000 Male 130,526 164,892 Female 94,963 108,103 RURAL POVERTY DYNAMICS 9
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): 1 2 3 1 2 3 1 2 3 1 2 3 Sample size (n) 130 153 97 101 135 144 100 129 149 124 122 133 Land access (average for 97 & 00) 0.41 0.55 0.58 1.06 1.17 1.17 1.49 1.90 1.87 3.73 3.77 3.78 Land access per capita 0.06 0.08 0.08 0.17 0.17 0.17 0.29 0.29 0.29 0.81 0.68 0.72 Female headed households (%) 12.3 13.1 7.2 30.7 13.33 5.56 17.00 17.8 7.38 25.8 17.2 3.76 Per capita income 162 142 234 159 239 281 286 258 363 363 467 469 Crop income share (%) 27.6 31.1 28.1 35.6 39.04 32.2 31.44 42.7 36.6 43.2 45.6 35.1 Livestock prod income share (%) 30.8 17.1 14.7 18.8 18.80 16.6 22.63 15.8 14.5 25.7 22.4 21.8 Off-farm income share (%) 41.6 51.6 57.2 45.6 42.16 51.2 45.93 41.5 48.9 31.1 32.0 43.1 Of which: remittances 4.52 4.27 2.08 5.50 3.45 4.83 5.58 4.50 3.95 4.44 5.51 4.26 Business income 15.8 16.7 18.4 16.1 18.56 13.6 16.53 15.8 12.0 14.5 13.7 10.3 Non-ag wage labour 19.5 28.3 34.8 22.8 18.46 32.2 22.81 20.5 32.6 11.6 11.6 28.2 Ag-wage labour 2.23 2.25 1.93 1.19 1.68 0.56 1.00 0.75 0.34 0.65 1.25 0.33 Crop income per hectare (US$) 555 598 821 345 560 551 305 387 468 212 322 261 RURAL POVERTY DYNAMICS 10
4. Receipt of Agricultural Credit 1997 2000 Percent Percent Non poor Received credit 41.5 56.1 Transitory poor Received credit 28.4 51.1 Chronic poor Received credit 16.1 40.1 RURAL POVERTY DYNAMICS 11
Receipt of credit by zone and poverty category in 1997 Non poor Transitory poor Chronic poor Total % of households receiving agricultural credit Coastal Lowlands 0.5 3.3 2.3 1.7 Eastern Lowlands 6.7 8.9 11.6 8.4 Western Lowlands 1.5 1.6 4.7 2.2 Western Transitional 8.7 19.5 10.5 12.4 High Potential Maize Zone 15.4 16.3 15.1 15.6 Western Highlands 4.6 16.3 36.0 14.9 Central Highlands 62.1 33.3 19.8 44.3 Marginal Rain Shadow 0.5 0.8 0.5 Total 100.0 100.0 100.0 100.0 RURAL POVERTY DYNAMICS 12
5. Crop Productivity by Poverty Category Total value of crop output per acre Poverty Category 1997 2000 Non-Poor 105,422 142,941 Exits 29,255 104,225 Entries 69,687 37,637 Chronic Poor 20,314 29,525 RURAL POVERTY DYNAMICS 13
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
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
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
Overall Objective Raise household incomes, Create Employment and ensure food and Nutrition Security RURAL POVERTY DYNAMICS 17
Aims of SRA Raise Productivity Increase private sector participation Review Legislation Encourage Diversification Improve Governance Promote regional Co-operation RURAL POVERTY DYNAMICS 18
Creation of Enabling Environment Policy Reforms Divestment Restructuring of ministerial functions Market liberalization Increased stakeholder participation RURAL POVERTY DYNAMICS 19
Legal and Regulatory Reforms Amalgamation of existing legislation Self-regulation Collaboration with other sectors RURAL POVERTY DYNAMICS 20
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
Value Addition and Marketing Development of Arid and Semi-Arid Lands Food and Nutrition Security Infrastructure Macroeconomic stability Financial services RURAL POVERTY DYNAMICS 22
Security Health Gender and empowerment Natural resources and Environmental management Early Warning Systems RURAL POVERTY DYNAMICS 23
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
Thank you RURAL POVERTY DYNAMICS 25