Nipate
Forum => Kenya Discussion => Topic started by: Kichwambaya on September 29, 2014, 09:50:36 PM
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PK wrote at TOOP
Three reports have come out in quick succession painting the state of Kenya's economy as extremely dire. The first, by Standard Bank Group, I reported several months ago and was promptly dismissed by RV Pundit. It found 92% of Kenyans were poor and only 4% qualified to be classified as truly middle class. The second, the latest release of the IPSOS SPEC Survey for September, which has now confirmed the findings of the Standard Bank - 93% of Kenyans earn less than KSh40,000 per month, 43% earn less than 10K. Rasna Warah discusses these two reports here.
Then there is the just-released study by Gallup, the Gallup-Healthways Global Well-Being Index, where Kenya has scored dismally, below Sub-Sahara Africa average on all elements. On financial well-being, a measly 8% of Kenyans interviewed reported they are thriving, with the rest either struggling or suffering; a majority (50%) reported they are suffering. This result surprised Gallup researchers, because Kenya is always thought of as a regional financial giant. Even more troubling, an overwhelming majority (90%) of Kenyans lack purpose in life - most people hate what they do at present. On the social front, the social fabric is in tatters - only 13% of Kenyans are thriving socially.
Staring into the abyss. How long before this country explodes?
Sobering!
Forget the hype about Kenya turning into a middle-income economy soon
By RASNA WARAH
I am glad that the Standard Bank Group’s researchers have debunked the myth that Kenya is an emerging economy because I am among those people who simply did not buy the hype that Kenya will have a robust middle class by 2030. The Group’s recent research shows that, contrary to optimistic projections by Vision 2030 enthusiasts, Kenya still has a long way to go before it is can be classified as middle-income.
According to the report, only 4 per cent of Kenyan households fall into the middle class category, which the Group places as those that have an income of between roughly Sh60,000 and Sh300,000 a month. The vast majority of the country’s households — 92 per cent — are still considered low income, that is, those earning less than Sh40,000 a month (figures converted from US dollars).
These figures have been validated by a recent Ipsos Ltd survey that showed 93 per cent of Kenyan adults earn less than Sh40,000 a month while 43 per cent earn less than Sh10,000.
Gallup-Healthways State of Global Well-being - Kenya
Kenya has a large multilingual population, an abundance of young workers, and a solid entrepreneurial tradition relative to other countries in the region . However, Kenyans’ results in financial well-being are similar to those for sub-Saharan Africa as a whole — just 8% of Kenyans are thriving in this element, while 50% are suffering .
Kenya’s economic slowdown notwithstanding, the country’s status as the economic hub of Eastern Africa makes residents’ low level of financial well-being somewhat surprising. A high degree of income inequality helps explain these results; residents who have benefited from the country’s growth and development enough to secure office jobs are much less likely than those in
non-office jobs to be suffering in this element — 39% vs. 65%, respectively.
Kenyans are somewhat less likely than sub-Saharan Africans overall to be thriving in purpose well-being (10% vs. 15%, respectively). In this element also, there are significant differences between Kenyans in office jobs, 15% of whom are thriving, and those with non-office jobs, at 8% thriving. About one in six Kenyans (16%) are thriving in community well-being. Employed Kenyans are about twice as likely to be thriving in this element as those who are not employed (20% vs. 11%), likely reflecting the relationship between community satisfaction and perceived job opportunities. Finally, just 16% of Kenyans are thriving in physical well-being, somewhat below the regional figure of 20%.
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Who decided 40K should be the measure of middle class in Kenya.
Looking at IPOS survey seem the breakdown is like..
43 per cent of Kenyans earn less than Sh10,000.
31 per cent earn sh10,000-Sh25,000.
33 percent earn sh25,000-sh40,000.
4 per cent earn more than Sh40,000.
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Who decided 40K should be the measure of middle class in Kenya.
Looking at IPOS survey seem the breakdown is like..
43 per cent of Kenyans earn less than Sh10,000.
31 per cent earn sh10,000-Sh25,000.
33 percent earn sh25,000-sh40,000.
4 per cent earn more than Sh40,000.
Looks impressive to me with some 68% earning between 10,000 to more than 40,000. This is not bad. Our standards of living are not that high. Between 10,000 shillings in a rural area is quite something. But again these percentages don't add up. 43%+31%+33%+4% is already 111%. Hey bwana.
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my bad--22% should be those who earn btw 25-40k
Looks impressive to me with some 68% earning between 10,000 to more than 40,000. This is not bad. Our standards of living are not that high. Between 10,000 shillings in a rural area is quite something. But again these percentages don't add up. 43%+31%+33%+4% is already 111%. Hey bwana.
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my bad--22% should be those who earn btw 25-40k
Looks impressive to me with some 68% earning between 10,000 to more than 40,000. This is not bad. Our standards of living are not that high. Between 10,000 shillings in a rural area is quite something. But again these percentages don't add up. 43%+31%+33%+4% is already 111%. Hey bwana.
Yes, thanks for the correction.