KENYA INTEGRATED HOUSEHOLD BUDGET SURVEY(KIHBS)

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1 KENYA INTEGRATED HOUSEHOLD BUDGET SURVEY(KIHBS) JOINT KENYA POVERTY ASSESSMENT WORKSHOP MOMBASA (19TH -20TH MAY 05) By Dankit Nassiuma KIHBS

2 INTRODUCTION Need for evidence-based policy making so as to optimize on the scarce resources. Economic Recovery Strategy (ERS) Demand for statistical data to support evaluation of development programs for economic recovery Updated statistics on poverty, consumption patterns, and living standards useful for planning Design and conduct household surveys in an integrated framework. Regular updates of key indicators to be monitored (e.g. measures of poverty and well- being, aspects of national accounts)

3 POVERTY REDUCTION STRATEGY PAPER (PRSP) Short to medium term proposals for reducing poverty in Kenya. Basic aim is to provide a framework for reducing poverty to 32% by 2004 from the 1997 level of 52%.

4 How? Clearly establishing critical poverty indicators Evaluating how development policies impact on poverty and how they are linked to the poverty indicators.

5 PROBLEMS IDENTIFIED WITHIN THE PRSP Landlessness Lack of education Prevalence of sicknesses Low productivity Inequality in land and capital access Vulnerability to poverty especially for women

6 QUESTIONS OF INTEREST Are these the only major factors related to poverty? How important are they in poverty reduction? What other factors interplay in the poverty system? What is the quantified effect on poverty of these factors?

7 MAJOR ACHIEVEMENTS EXPECTED WITHIN THE PRSP Accelerated economic growth Good governance Adequate security Ability for the poor to raise their incomes Improving of welfare of Kenyans in terms of equity and quality Increase in development participation of the marginalized groups

8 Previous studies the first Integrated Rural Survey (IRS I) and IRS II in (various measures of poverty in Kenya were evaluated). Three welfare monitoring surveys in the 1990 s s to evaluate the social economic effects of SAPs WMS I and II in 1992 and 1994 provided an indication of the extend of absolute poverty in Kenya. WMS III in 1997 provided indicators for policy prioritization. Show incidences, depth and location of the poor in Kenya as well as the social dimensions of poverty that included water, health and education. Mwabu et al. (2000) and Oyugi (2000) to identify poverty indicators based on the 1994 WMS data.

9 KIHBS MEASURE AND MONITOR POVERTY AND LIVING STANDARDS WHAT ARE THE POVERTY INDICATORS AND BENCHMARKS? UPDATE THE URBAN CONSUMER PRICE INDEX (CPI) AND ESTABLISH THE RURAL ONE.

10 COMPILE NATIONAL ACCOUNTS STATISTICS UPDATE EMPLOYMENT STATISTICS COLLECT DATA ON VARIOUS SOCIO- ECONOMIC CIRCUMSTANCES OF THE KENYAN POPULATION INCLUDING EDUCATION, HEALTH, COOKING AND LIGHTING FUEL (ENERGY), HOUSING, WATER AND SANITATION, AMONG MANY OTHER THINGS.

11 INFORMATION AT THE DISTRICT LEVEL TO SUPPORT THE M&E ACTIVITIES OF THE ERS, MDG S AND OTHER GOVERNMENT POLICIES AND PROGRAMMES INFORMATION ON INITIATIVES SUCH AS INFRASTRUCTURE INVESTMENTS, PENSION AND HEALTH INSURANCE

12 RELATION TO PRSP Identify priority areas that provide macroeconomic stability and spur economic growth. Identify policy aspects that should go hand in hand with the priorities Evaluate income opportunities-employment, Agricultural potential, Enterprises as well as Education access and training Quality of life: Social services that are essential e.g Education, health, infrastructure, sanitation, energy and water. Equity:-Role of women and other marginalized in all aspects

13 Sampling Survey design developed to ensure that shortcomings of the previous Welfare Monitoring Surveys and Household Budget Surveys are addressed. Issues of weighting and estimation were addressed. A sample of 1,343 clusters, each containing 10 households and distributed both spatially and temporally to account for seasonality. Household re-listing listing: : 784 clusters [all urban, all ASAL, and 20% rural clusters mainly in settlement districts] were re-listed.

14 ISSUES Is the length of time (12 months) sustainable? (Not in the short run. Data generated from the survey would provide a basis for adjustments. But these would most likely be redundant after ten years). Is the coverage adequate? (Yes for the available resources but not for extension of the results to the constituency level where the CDF is currently being channeled).

15 MONITORING AND EVALUATION A process that requires consistency and stability KIHBS project designed to lay a base for future surveys by taking into account possible players in the poverty system. Critical indicators will be identified and quantified, thus providing a comprehensive evaluation of poverty determinants. Previous surveys (WMS and IRS) have been inconsistent and thus comparativeness is limited which leads to different interpretations of the poverty situation. The current project thus provides a framework for consistency and stability for poverty monitoring and impact assessment.

16 EXPECTED OUTPUTS POVERTY PROFILES AT REGIONAL AND NATIONAL LEVELS CRITICAL POVERTY INDICATORS POLICY IMPACT ON POVERTY AND LIVING STANDARDS QUANTIFIED IMPACTS OF POLICY INDICATORS LEVEL AND DIRECTION OF ERS INITIATIVES ON POVERTY INTERELATIONSHIP BETWEEN POVERTY AND SOCIAL ASPECTS METHODOLOGIES: DESIGN, ANALYSIS & M/E TOOLS

Well-Being and Poverty in Kenya. Luc Christiaensen (World Bank), Presentation at the Poverty Assessment Initiation workshop, Mombasa, 19 May 2005

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