Poverty a big hurdle in achieving Vision 2030

Reducing poverty will be the greatest challenge for the government as it pursues Vision 2030, economists warn.

According to official figures, 46 per cent of Kenyans are classified as poor, meaning they live on less than a dollar (Sh77.30) a day.

Vision 2030 is the country’s development blueprint that covers the 2008-2030 period and is aimed at transforming Kenya into a newly industrialising “middle-income country providing a high quality life to all its citizens by the year 2030”.

Any long-term government plan must address income inequality, which is the result of accumulated years of living in poverty.

“The challenge now is how to address income inequality,” a leading investment banker said.

Better income

One of the causes of this inequality is lack of education.

“The reason someone is poor today perhaps is because he never had access to basic and advanced education that would have enabled him gain skills that would have helped him get a job with a better income,” the banker said.

Poverty reduction and reduced income disparities could be achieved by cutting inequality in access to public services and income opportunities across gender, social status and regions.

Vision 2030’s specific goal should be to reduce the national rate of poverty from the current 46 per cent to a range of between 30 and 35 per cent by 2012.

In pursuing the objectives laid out in this blueprint, the government will have to surmount various macroeconomic challenges.

Simple role

The first involves ensuring financial stability. “Make sure inflation is as low as possible so that households will not find it difficult to survive,” said a local stockbroker.

“The income a breadwinner brings home should be enough to afford meals, buy clothes and anything they require.”

Interest rates should also remain low because credit is a fundamental component of an economy.