‘Kenyans poorer than Ugandans’

 

By Monitor Reporter

In Summary

A new report by the World Bank and the International Monetary Fund shows that although Kenya’s economy is ahead, the number of people living on less than a dollar a day is bigger.

Kampala

Kenya has poorer people than Uganda, despite having a far larger economy, a new report by the World Bank and the International Monetary Fund shows.

According to the Global Monitoring Report 2013, Uganda’s poverty head count stands at 38.01 per cent against Kenya’s 43.37 per cent, using the poverty cut-off point of $1.25 per person.

The poverty level scoring is based on the number of people living below Sh105 ($1.25) a day. Previous studies have used $1 daily but that has since been replaced with the higher amount. According to the report, the level of poverty in Tanzania stands at 67.87 per cent, based on the latest available data.

In Rwanda, poverty stands at 63.17 per cent while in Burundi it is at 81.32 per cent, showing the extent to which war has continued to adversely impact livelihoods in the agriculture-rich country.

Burundi and neighbouring Tanzania therefore have the largest proportion of poor people among the members of the East African Community.

MPs Tinkasimire, Ssekikubo and Niwagaba in Kyankwanzi before they were suspended from the NRM party. PHOTO BY FAISWAL KASIRYE 

According to the report, sub-Saharan Africa has lagged behind in attaining the millennium development goals (MDGs), including halving poverty levels. “In 1990, with poverty rates of about 55 per cent, sub-Saharan Africa and East Asia were at the same starting position for MDG (and intention) to halve the number of people in extreme poverty,” the report reads.

“By 2010, East Asia made spectacular progress and reduced extreme poverty rate to 12 per cent compared to sub-Saharan Africa which still had a poverty rate of 48 per cent.”

The report suggested that growth of town dwellers helps to reduce poverty. In Africa urbanisation has increased from 30 per cent of the population in 1980 to 50 per cent in 2011. “Urbanisation helps pull people out of poverty and advances progress towards the MDGs, but, if not managed well, it can also lead to burgeoning growth of slums, p

A fan (L) admires musician Bebe Cool’s vehicle. Photo by Ismail Kezaala 

ollution, and crime,” says the report.

At global levels
From a global perspective, the report says urbanisation has been a major force behind poverty reduction and progress towards other MDGs. It noted that more than 80 per cent of global goods and services were produced in cities such that countries with relatively higher levels of urbanisation such as China, and many others in East Asia and Latin America, had played a major role in lowering extreme poverty worldwide.

“In contrast, the two least urbanised regions, South Asia and Sub-Sahara Africa), have significantly higher rates of poverty and continue to lag behind on most MDGs.”