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Kenyan Economy in Crisis as 39% of Households Sink into Poverty

Nickson NjaubyNickson Njau
May 14, 2025
Reading Time: 4 mins read
Kenyan Economy In Crisis As 39% Of Households Sink Into Poverty

A view of Kibera slums in Nairobi.Photo/Courtesy

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The latest Kenya National Bureau of Statistics (KNBS) report shows that poverty levels have grown to 39.6%, which means more households are unable to make ends meet.

According to the KNBS economic survey, an estimated 20 million Kenyans are likely to sleep hungry because they cannot meet their basic food and non-food needs.

The statistics body estimates that there is a 39.8 per cent overall national poverty headcount rate for individuals in the country. The headcount rate refers to the percentage of the population living below the poverty line, indicating the proportion of individuals who are considered poor.

KNBS disclosed that the poverty rate was higher in rural areas than in urban areas, with counties in ASAL areas recording higher poverty rates. Nairobi and Mombasa had the lowest poverty rates, with 16.5% and 27.0%, respectively, attributed to improved access to economic opportunities.

With more than two-thirds of their people living below the poverty line, counties in the arid and semi-arid regions, such as Turkana (82.7%), Mandera (72.9%), and Samburu (71.9%), generally recorded higher poverty rates than other regions.


Also Read: List of Commodities Whose Prices Dropped, Increased in February


Nairobi Statistics

“Nairobi City has the highest working population, at 2,191,913, reflecting its role as the country’s economic hub. This is followed by Kiambu, with 1,285,151, and Nakuru, with 947,626, both of which are also major urban and economic centers,” reads the report.

According to KNBS, these counties demonstrate higher employment figures due to their urbanisation and economic prominence.

On the other hand, counties such as Lamu (44,926), Isiolo (48,293), and Samburu (43,428) have the lowest working populations, which KNBS attributes to their smaller populations and limited economic opportunities emanating from limited diversification of economic activities.

Informal Jobs

In an interview with the media, Abraham Rugo, the executive director of Bajeti Hub, said that jobs reflect how the economy of a country is structured and that informal jobs are not sustainable because they are erratic, and they don’t even contribute to the tax bracket.


Also Read: Kenyans Hit Hard as Prices of Gas, Electricity and Rent; Other Commodities Hike- Report


Additionally, he said, the income people with informal jobs receive is not gainful, adding that it is only enough for their basic needs, and this contributes to poverty growth.

“When the number of poverty has gone to 40%, it means that more households are not able to make ends meet,” he noted.

The findings come at a time when a majority of locals are grappling with heightened unemployment levels, making it hard to put food on their tables.

The 2024 Gross County Product report shows that as of 2022, the total working population stood at nearly 20 million individuals, out of an estimated 52 million Kenyans.

This comprised 10,483,645 males and 9,515,741 females, indicating that male participation in the workforce is slightly higher across the country.

Follow our WhatsApp Channel and X Account for real-time news updates.

Kenyan Economy In Crisis As 39% Of Households Sink Into Poverty
Images of residents of Mukuru slums after demolition. PHOTO/Babu Owino

Tags: KNBS 2025 Economic Survey
Nickson Njau

Nickson Njau

Nixon Njau is an accomplished Digital Journalist at The Kenya Times, renowned for his sharp investigative skills and unwavering commitment to uncovering the truth. With a talent for conducting insightful interviews with newsmakers, he builds trust with sources, revealing compelling stories that spark dialogue and drive societal and political change. He excels in conducting thorough interviews and in-depth research, ensuring that his stories are both informative and engaging. He can be reached at [email protected]

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