Inequality, Poverty, Growth and Institutions: Under standing the linkages in Kenya

Abstract

"This Brief analyzes the linkage between inequality, poverty and economic growth in addition to assessing the extent to which growth in Kenya has been pro-poor. It also explores the link between institutions, poverty and inequality. The macroeconomic indicators show that economic growth in Kenya recorded an upward trend between 1994 and 1996 but dropped significantly in 1997. This was followed by a period of impressive recovery up to 2007. During the same period, poverty increased by 13% between 1994 and 1997, but declined by about 5% in 2005/6. Inequality however increased over the period, frustrating the impact of growth on poverty reduction."