Indicator 10.1.1 Growth rates of household expenditure or income per capita among the bottom 40 per cent of the population and the total population

Goal 10: Reduce inequality within and among countries

Target 10.1: By 2030, progressively achieve and sustain income growth of the bottom 40 per cent of the population at a rate higher than the national average

Indicator 10.1.1: Growth rates of household expenditure or income per capita among the bottom 40 per cent of the population and the total population

2024

1.1.1: Proportion of the population living below the international poverty line by sex, age, employment status and geographic location (urban/rural)

1.2.1: Proportion of population living below the national poverty line, by sex and age

10.2.1: Proportion of people living below 50 per cent of median income, by sex, age and persons with disabilities

Kenya National Bureau of Statistics

Senior Manager, Research and Development

Research and Development Division

Production, compilation and dissemination of poverty and socio-economic statistics

+254-202-911-000

30266-00100, Nairobi- Kenya

dscm@knbs.or.ke

Definition:

The growth rate in the welfare aggregate of bottom 40% is computed as the annualized average growth rate in per capita real consumption or income of the bottom 40% of the income distribution in a country from household surveys over a roughly 5-year period.

The national average growth rate in the welfare aggregate is computed as the annualized average growth rate in per capita real consumption or income of the total population in a country from household surveys over a roughly 5-year period.

Concepts:

Promoting shared prosperity is defined as fostering income growth of the bottom 40 percent of the welfare distribution in every country and is measured by calculating the annualized growth of mean per capita real income or consumption of the bottom 40 percent. The choice of the bottom 40 percent as the target population is one of practical compromise. The bottom 40 percent change over time within a country depending on the welfare distribution. Because boosting shared prosperity is a country-specific goal, there is no numerical target defined globally.

Percent (%)

Not applicable

Kenya Integrated Household Budget Survey(KIHBS)(2015/16) and Kenya Continuous Household Surveys (KCHS)(2019-2022)

Household Surveys

Every five years for KIHBS and Annually for KCHS

Within an year after publication

Kenya National Bureau of Statistics

Kenya National Bureau of Statistics

According to the Statistics Act of 2006, Kenya National Bureau of Statistics is mandated to collect, compile, analyze, publish and disseminate official statistics for public use

Improvements in shared prosperity require both a growing economy and a consideration of equity. Shared prosperity explicitly recognizes that while growth is necessary for improving economic welfare in a society, progress is measured by how those gains are shared with its poorest members. Moreover, in an inclusive society it is not sufficient to raise everyone above an absolute minimum standard of living; it must ensure that economic growth increases prosperity among the poor over time.

The decision to measure shared prosperity based consumption was not taken to ignore the many other dimensions of welfare. It is motivated by the need for an indicator that is easy to understand, communicate, and measure – though measurement challenges exist. Indeed, shared prosperity comprises many dimensions of well-being of the less well-off, and when analysing shared prosperity in the context of a country, it is important to consider a wide range of indicators of welfare.

There is limited technical knowhow on the computation of the shared prosperity. The interpretation of the growth rates is also not very clear even in available literature.

Growth rates are calculated as annualized average growth rates over a roughly five-year period. The base year for calculation of the growth rates 2020, 2021 and 2022 is the 2015/16 Kenya Integrated Household Budget Survey (KIHBS). This translates roughly to an interval period of 5, 6 and 7 years.

The final year of the growth period (T1) is the most recent year of a survey (2022,2021 and 2020), and the initial year (T0) is the 2015/16. Thus the gap between initial and final survey years ranges from five to seven years.

A roughly five-year period is used because shorter periods may be vulnerable to short-term volatility not strongly related to long term progress. Windows longer than five years, on the other hand, would limit the number of data points available due to lack of comparable data within countries over longer periods of time.

For the three reported years, consumer price indices are used to express the consumption of the two surveys in the same year’s prices (2015/16 prices). Then, the annualized growth of mean per capita real income or consumption is computed by first estimating the mean per capita real income or consumption of the bottom 40% of the welfare distribution in years T0 and T1 and then computing the annual average growth rate between those years using a compound growth formula:

Growth of mean per capita real income or consumption of the total population is computed in the same way using data for the total population.

Statistics produced undergoes a rigorous process of peer review from our partners who include World Bank and UNICEF and other stakeholders

May refer to the report “On the Construction of a

Consumption Aggregate for Inequality and Poverty Analysis”. The report is available here:

https://documents.worldbank.org/en/publication/documents-reports/documentdetail/099225003092220001/p1694340e80f9a00a09b20042de5a9cd47e

http://www.worldbank.org/content/dam/Worldbank/document/WB-goals2013.pdf.

The Kenya National Bureau of Statistics is ISO certified based on 9001:2015 Standard requirements. The processes of compilation, production, publication and dissemination of data, including quality control, are carried out following the methodological framework and standards established by the KNBS, in compliance with the Internationally acceptable standards

The KNBS adheres to Kenya Statistical Quality Assurance Framework (KesQAF) that underlines principles to be assured in managing the statistical production processes and output.

Data consistency and quality checks are conducted through Technical Working Groups (TWGs) before publication and dissemination. A quality assurance report on poverty estimates is also produced.

The processes of compilation, production, publication and dissemination of data, including quality control are subjected to a set criteria and standards to ensure conformity. Before estimates are produced, they are assessed by the World Bank team for quality.

The reported poverty estimates are disaggregated by rural/urban and county level. Data is available both in aggregate and item level and can be accessed through https://statistics.knbs.or.ke/nada/index.php/home

The main sources of differences could be different welfare aggregates and years of surveys used in the calculation.

https://www.knbs.or.ke/publications/

https://documents.worldbank.org/en/publication/documents-reports/documentdetail/099225003092220001/p1694340e80f9a00a09b20042de5a9cd47e

https://statistics.knbs.or.ke/nada/index.php/home

The Global Database of Shared Prosperity, World Bank, http://www.worldbank.org/en/topic/poverty/brief/global-database-of-shared-prosperity. World Development Indicators, World Bank.