The Central Bank of Kenya (CBK) has revealed critical insights into employment trends, poverty rates, and the impact of economic policies on inequality and living standards.....CLICK HERE TO READ THE FULL ARTICLE>>>
The Quarterly Economic Review Q1 2024, released last week, provided a comprehensive analysis of these crucial aspects of Kenya’s socioeconomic landscape.
Kenya’s labour market exhibited resilience in the first quarter of 2024, with a notable increase in employment rates.
The service sector emerged as a significant contributor to job creation, driven by robust growth in retail, hospitality, and telecommunications.
“The services sector maintained the strong growth momentum in the first quarter of 2024. It grew by 6.2 percent compared to 6.8 percent in a similar quarter of 2023 and contributed 3.5 percentage points to real GDP growth,” read the report in part.
Additionally, the agricultural sector saw a seasonal uptick in employment due to favourable weather conditions and improved access to agricultural inputs.
However, the report highlights ongoing challenges in reducing youth unemployment, which remains disproportionately high compared to other demographics.
The achievement and maintenance of a low and stable inflation rate, coupled with adequate liquidity in the market, facilitates higher levels of domestic savings and private investment.
The report said the above leads to improved economic growth, higher real incomes and increased employment opportunities.
The CBK emphasizes the need for targeted policies to enhance skills development and create more opportunities for young people entering the workforce.
Despite economic growth, poverty rates in Kenya continue to pose a significant challenge.
The report indicates a slight decline in the national poverty rate, attributing this progress to government interventions aimed at social protection and poverty alleviation.
Programs such as the Inua Jamii cash transfer initiative and increased investment in rural infrastructure have contributed to this positive trend.
However, the report underscores that poverty remains prevalent in rural areas and informal settlements, where access to essential services like healthcare, education, and clean water is limited.
The CBK calls for sustained efforts to address these disparities and ensure inclusive economic growth.
The CBK’s report assesses the impact of various economic policies implemented to reduce inequality and improve living standards.
Notably, the government’s focus on expanding social safety nets and increasing public spending on health and education has yielded tangible benefits.
Investments in universal healthcare coverage and the Competency-Based Curriculum (CBC) are highlighted as key drivers of social progress.
Moreover, fiscal policies aimed at supporting small and medium-sized enterprises (SMEs) have facilitated job creation and economic diversification.
Tax incentives, access to affordable credit, and capacity-building programs have empowered SMEs to thrive, contributing to a more equitable distribution of income and opportunities. Reducing inequality remains a central objective for Kenya’s policymakers.
The CBK report emphasises the importance of implementing comprehensive land reforms, enhancing social protection programs, and promoting gender equality in economic participation.
These measures are essential for achieving sustainable development and ensuring that the benefits of economic growth are broadly shared.
As Kenya navigates the complexities of post-pandemic recovery, the CBK underscores the need for a balanced approach that prioritizes both economic growth and social equity.
Policymakers are urged to continue investing in sectors that create jobs, reduce poverty, and enhance living standards for all Kenyans...CONTINUE READING>>
