The World Bank has applauded Kenya’s Efforts to cushion its most vulnerable population from extreme poverty.
The lender says the efforts have been successful, with more than 60 per cent of direct cash transfer benefits reaching the poorest 40 per cent of the population, according to their latest economic update for the country.
‘’We are glad to see that Kenya continues to invest in social protection programs. They are extremely important to support poor Kenyans and protect vulnerable households, For example, cash transfer programs give poor households the opportunity to invest in their future to escape poverty.” World Bank Senior Economist Utz Pape said.
Adding that Personal income tax in Kenya is progressive with the poorest 40 per cent accounting for only 14.3 per cent of market income but less than 1 per cent of direct taxes.
‘’In contrast, 80 per cent of the tax incidence is borne by the richest 10 per cent of Kenya’s population,” he added.
The lender had earlier in April 2018 indicated that Kenya’s Private Sector would drive inclusive growth and Accelerate Poverty Reduction, noting that current monetary and non-monetary poverty indicators in Kenya are better compared to most Sub-Saharan African (SSA) countries, but continue to lag other lower-middle-income countries.
‘’Overall, given Kenya’s income levels and poverty rate, human development indicators are relatively high, illustrating that Kenya performs better on non-monetary dimensions of poverty,’’ the lender said.
‘’Kenya has registered growth domestic product (GDP) growth rates above 5% for most of the past decade. However, the KEU notes that the transmission of that growth into increased consumption at household level remains low, or GDP growth would have translated into even higher poverty reduction.’’ Read the earlier report.