How do we know if a Kenyan is poor? The poverty line is the threshold someone needs to meet to be considered poor.
The Kenya Household and Continuous Survey (KHCS) measures three different forms of poverty: overall (absolute) poverty, food poverty, and hardcore poverty.[1]
- The poverty line in Kenya is Ksh 4,358 in rural areas and Ksh 8,006 in urban areas.
- The food poverty line is Ksh 2,668 in rural areas and Ksh 3,521 in urban areas.
How we measure well-being in Kenya
First, before we get to the poverty lines, it is important to know what KCHS looks at to determine who is poor and to develop the poverty lines.
Compared to other countries that may use income data to measure poverty, in Kenya, we use consumption expenditure data, which does not fluctuate much and accurately captures the situation in rural areas, where households depend on agriculture to meet their needs.
Consumption expenditure has two components:
- Food consumption
- None food consumption
The food component
The food consumption component looks at the major sources of food in most Kenyan households. According to the KCHS, there are three major sources, where you are likely to get your food.
- Purchase - stocks and purchased food accounted for 87.6% of the total food consumed in Kenya.
- Own production – when you consume food that you have grown. Accounted for 12.3% of total food consumed.
- Gifts - accounted for 4.1% of total food consumed.
The non-food component
The non-food component includes all other consumption expenditure that is not food.
It includes expenditures on things like fare, airtime, water, rent, electricity, gas and other cooking fuel, healthcare, clothes, furniture and household utensils, recreation, insurance, cars, and other miscellaneous expenses.
Poverty Lines
The Kenya Household Continuous Survey examines three different measures of well-being regarding poverty, with two different poverty lines.
The Food Poverty Line
To understand the food poverty rate, we look at the minimum number of calories that someone needs to live a healthy life. In Kenya, we consistently use 2,250 Kcal as the minimum calorie content for well-being.
We then look at the foods someone eats and their calorie content to come up with a Ksh-based equivalent of what someone needs to spend on food to meet that minimum calorie requirement.
- Therefore, the food poverty line was Ksh 2,668 in rural areas and Ksh 3 521 in urban areas.
The Overall Poverty Line
Note that the food poverty line only looks at the food consumption component. In contrast, the overall poverty rate brings together both the food component and the non-food components listed above.
The overall poverty rate tells us whether people meet their basic food requirements and other essential daily living expenses, such as shelter, clothes, and healthcare.
- Therefore, the overall poverty line in 2022 was Ksh 4,358 in rural areas and Ksh 8,006 in urban areas.
Note that the KHCS adjusts for both seasonal and geographical variations in prices. People in Turkana, Homa Bay, Kitui, or Meru will have their poverty rates computed based on the local prices of commodities in those regions.
Is there a poverty line for hardcore poverty?
The hardcore poverty rate is the percentage of individuals or households whose total monthly consumption expenditure (including the food and non-food component) is lower than the food poverty line.
A person X is considered to be in hardcore poverty if their monthly spending is lower than Ksh 2,688 in rural areas or Ksh 3,521 in urban areas.
See Also
- The Overall Poverty Rates in Kenya by County
- Poverty Rates in Kenya by Constituency
- Hardcore Poverty Rates in Kenya by County
- Number of people who cannot afford food in Kenya
- Wealth Inequality in Kenya by County
References
[1] KNBS 2024. Poverty Report: Based on the 2022 Kenya Continuous Household Survey. Nairobi, Kenya.
