Author Topic: Kenya failure to target poverty reduction  (Read 2260 times)

Offline KenyanPlato

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Kenya failure to target poverty reduction
« on: June 03, 2020, 03:43:07 PM »
It seems to me that gdp per capital growth in kenya has mostly benefited upper middle class and rich people. There is a serious erosion for lower middle class and continued expansion of poor.

Farmers earnings seem to be dropping due to negative effects of international markets and erosion of local consumer capacity.

The biggest policy failure of jubilee is believe that infrastructure development benefits will truckle down to consumers. Gok has allocated itself the mandate of controlling the market instead of guiding the markets


Offline mankind

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Re: Kenya failure to target poverty reduction
« Reply #1 on: June 03, 2020, 06:16:21 PM »
   Infrastructure development does work if done properly. A case in point is Thika road and southern bypass.I went to college in KCA in Ruaraka in late 98 to early 2000 then left for Trump country in 04. I can tell you today when I go back home and get to drive on thika road I cant even find my former college due to development. In December I got a chance to visit both Maai mahio and Suswa stations and it was clear it was being under-utilized because of connectivity to the main roads. The Suswa station is less than a mile from the main road heading to Narok but the connecting road was muddy and you couldnt tell it was going to a very nicely built station. The one in Maai Mahio was worse. Theres basically no road and when you arrive at the SGR station you can see the grass is starting to overgrow the parking lot. I do business in Northern Kenya all the way to South Sudan and I can tell you the  expenses due to breakdowns are not business friendly.

Offline KenyanPlato

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Re: Kenya failure to target poverty reduction
« Reply #2 on: June 03, 2020, 06:27:25 PM »
   Infrastructure development does work if done properly. A case in point is Thika road and southern bypass.I went to college in KCA in Ruaraka in late 98 to early 2000 then left for Trump country in 04. I can tell you today when I go back home and get to drive on thika road I cant even find my former college due to development. In December I got a chance to visit both Maai mahio and Suswa stations and it was clear it was being under-utilized because of connectivity to the main roads. The Suswa station is less than a mile from the main road heading to Narok but the connecting road was muddy and you couldnt tell it was going to a very nicely built station. The one in Maai Mahio was worse. Theres basically no road and when you arrive at the SGR station you can see the grass is starting to overgrow the parking lot. I do business in Northern Kenya all the way to South Sudan and I can tell you the  expenses due to breakdowns are not business friendly.

How is this infrasturucture reducing poverty for the 16 million poor. We know that most of the investments in Kenya are tied in economics ya mawe thus denying much needed capital to other sectors. You find a farmer investing their life savings in a building in Nairobi because there is no incentive from the government or the market to invest more in farming and increase productivity. I think what economists have been saying is that Kenya needs to invest more in increasing agricultural produdictivy to help lift most of families in rural areas out of poverty. A shiny building and road rarely translates to what reduction of poverty

Offline RV Pundit

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Re: Kenya failure to target poverty reduction
« Reply #3 on: June 03, 2020, 07:00:29 PM »
Yes, infrastructure does wonders. That is what Jubilee need to focus on. I think in the next few years Naivasha-Suswa-Ngong will become the new thika road - there is land for expansions - free sand there - and they just need to sort the land problems. Personally, the next plot I will buy will be in that area.
   Infrastructure development does work if done properly. A case in point is Thika road and southern bypass.I went to college in KCA in Ruaraka in late 98 to early 2000 then left for Trump country in 04. I can tell you today when I go back home and get to drive on thika road I cant even find my former college due to development. In December I got a chance to visit both Maai mahio and Suswa stations and it was clear it was being under-utilized because of connectivity to the main roads. The Suswa station is less than a mile from the main road heading to Narok but the connecting road was muddy and you couldnt tell it was going to a very nicely built station. The one in Maai Mahio was worse. Theres basically no road and when you arrive at the SGR station you can see the grass is starting to overgrow the parking lot. I do business in Northern Kenya all the way to South Sudan and I can tell you the  expenses due to breakdowns are not business friendly.

Offline RV Pundit

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Re: Kenya failure to target poverty reduction
« Reply #4 on: June 03, 2020, 07:03:12 PM »
I agree. Yes but only if gov, insurance, pensions and big fund managers can go back to housing - will the farmer do something else.

The problem is we have left our housing to be informal. It like Matatu sector. It's free for all mess.

Way forward is for gov, insurance, pension and such funds to go in - build huge real estate and bridge the deficit.

Once that it's done - the Kiambu farmer will not go to Nairobi to fill the housing deficit - but will find out other investment - like small light manufacturing - or agro-processing. It will not make sense to compete with pension funds who can build 100k housing units and rent it out cheaply.

But as of now - we have immediate housing need of 2m units - and we have so many slums.

There are two sectors that we have allowed informality to be the norm - housing and transport.

At least for agriculture - there is a lot of cooperative movements - that formalize and organize small holders.

At least for Retaila and Wholesaling - we are seeing Supermarkets and malls - formalizing it.

But for transport - gov has to go in BIG TIME - like SGR is doing - go in BIG time with trams, light rails, buses - and kick out Matatus. The economies of scale will allow gov to operate buses on time, cheaply and safely.

When informality is killed - formality will thrive - and development will follow. People will have more formal jobs - rather than an informal loss-making inefficient business.

How is this infrasturucture reducing poverty for the 16 million poor. We know that most of the investments in Kenya are tied in economics ya mawe thus denying much needed capital to other sectors. You find a farmer investing their life savings in a building in Nairobi because there is no incentive from the government or the market to invest more in farming and increase productivity. I think what economists have been saying is that Kenya needs to invest more in increasing agricultural produdictivy to help lift most of families in rural areas out of poverty. A shiny building and road rarely translates to what reduction of poverty

Offline Georgesoros

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Re: Kenya failure to target poverty reduction
« Reply #5 on: June 05, 2020, 11:14:00 PM »
It seems to me that gdp per capital growth in kenya has mostly benefited upper middle class and rich people. There is a serious erosion for lower middle class and continued expansion of poor.

Farmers earnings seem to be dropping due to negative effects of international markets and erosion of local consumer capacity.

The biggest policy failure of jubilee is believe that infrastructure development benefits will truckle down to consumers. Gok has allocated itself the mandate of controlling the market instead of guiding the markets



The regular guy is fucked up in Kenya.
Policey makers have greatly benefited instead of the regular guy.

Offline gout

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Re: Kenya failure to target poverty reduction
« Reply #6 on: June 06, 2020, 11:29:59 AM »
A look at the 2019 census and developments in areas say Ruiru/Kitengela/Rongai/ and their environs, you get a feeling we were doing well if we had maintained the momentum from 2004 - 2015. You can barely recognise these places which were dusty desolate areas in 2000s.  They have booming businesses, rentals, homes and all signs of live better than dusty villages or usual Mathare, Kibera slums;  only struggling with drainage during rainy season. 
Government, even in its best state, is but a necessary evil; in its worst state, an intolerable one ~ Thomas Paine

Offline KenyanPlato

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Re: Kenya failure to target poverty reduction
« Reply #7 on: June 06, 2020, 02:34:38 PM »
A look at the 2019 census and developments in areas say Ruiru/Kitengela/Rongai/ and their environs, you get a feeling we were doing well if we had maintained the momentum from 2004 - 2015. You can barely recognise these places which were dusty desolate areas in 2000s.  They have booming businesses, rentals, homes and all signs of live better than dusty villages or usual Mathare, Kibera slums;  only struggling with drainage during rainy season.

Most of this is just migration of Kikuyus from densely populated rural areas to this areas. Nothing magical about that

Offline gout

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Re: Kenya failure to target poverty reduction
« Reply #8 on: June 06, 2020, 02:46:05 PM »
People have been moving from villages to the springing towns all over and Nairobi metropolitan is a magnet. It is only that the numbers are political we would find proof that Kiambu is now a cosmopolitan and the Kikuyus are outnumbered if we were to get tribe distribution by counties.  Kikuyus have also spread out to all urban areas across Kenya.
Government, even in its best state, is but a necessary evil; in its worst state, an intolerable one ~ Thomas Paine

Offline KenyanPlato

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Re: Kenya failure to target poverty reduction
« Reply #9 on: June 06, 2020, 02:52:01 PM »
People have been moving from villages to the springing towns all over and Nairobi metropolitan is a magnet. It is only that the numbers are political we would find proof that Kiambu is now a cosmopolitan and the Kikuyus are outnumbered if we were to get tribe distribution by counties.  Kikuyus have also spread out to all urban areas across Kenya.

Remember Kiambu includes Githurai, Ruiru, and Thika.. real Kiambu is from Kiambu town.

Offline gout

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Re: Kenya failure to target poverty reduction
« Reply #10 on: June 06, 2020, 03:07:34 PM »
I agree. The US Census Bureau does perfect with the census numbers. Here we have to make subjective guesses on numbers and twist them as we deem fit.

People have been moving from villages to the springing towns all over and Nairobi metropolitan is a magnet. It is only that the numbers are political we would find proof that Kiambu is now a cosmopolitan and the Kikuyus are outnumbered if we were to get tribe distribution by counties.  Kikuyus have also spread out to all urban areas across Kenya.

Remember Kiambu includes Githurai, Ruiru, and Thika.. real Kiambu is from Kiambu town.
Government, even in its best state, is but a necessary evil; in its worst state, an intolerable one ~ Thomas Paine