Transient and chronic rural household poverty: evidence from Kenya

This article serves as a toolkit for policy makers addressing transient and chronic poverty in Kenya. It urges that poverty targeting criteria must take into account household sizes, gender of household head, dependency ratios, farm sizes, education attainment and geographic characteristics. The authors suggest that in Kenya, the success of education in reducing poverty depends on primary graduates excelling beyond primary schools. Due to the connection between high chronic poverty and large families, family planning programmes need to be promoted. Policies aimed at eradicating illiteracy and closing the gender gaps in education would also be appropriate. Legal reforms and enforcement of laws relating to women&rsquo;s property ownership and inheritance, laws relating to age of marriage, and sex discrimination in the labour market are also called for. Other findings include: agricultural productivity: the government&nbsp;needs to&nbsp;support non-market distorting programmes to promote fertilizer and hybrid seed use, and policies to expand their distribution networks<br /> access to credit: policy responses should include promotion of community banks, private rural banks, savings and credit cooperatives, agricultural development banks and credit non-governmental organisations. Rural communities must also learn to save. Programmes that guarantee farm inputs credit would be appropriate<br /> agricultural extension: The government will need to strengthen the agricultural extension system&nbsp;<br />&nbsp;to encourage crop diversification, particularly into high value crops. Diversification of income sources in the short-run could include other income generating activities such as bee keeping, livestock, and small businesses. In the long-run diversification into formal employment is appropriate. Programmes that promote and sensitise communities about accumulation of physical assets are in order<br /> food and nutrition: A lasting policy is needed which should consider diversification of income sources, generation of appropriate lowland technologies (crops and seeds) and feasibility of crop growing under irrigation<br />