Urban Poverty and Inequality in Kenya

Abstract

This paper explores urban poverty and inequality in Kenya. We use the 2009 Kenyan population census data and estimate multidimensional poverty and inequality measures in the capital city and other secondary cities and towns. The results of our analysis show that poverty levels vary considerably across the different hierarchies of cities and towns in the country. The incidence of multidimensional poverty is relatively lower in the capital city, Nairobi (27%), and its satellite towns such as Ruiru (22%) and Thika (27%), while the figure is relatively higher in other large secondary cities such as Mombasa (44%) and Kisumu (46%). However, we also find large disparities in poverty levels within these cities/towns. For instance, location level poverty estimates in Nairobi range from more than 60% in Korogocho and Laini saba locations to less than 5% in Kileleshwa and Kilimani. Consistent with this, location-based horizontal inequality estimates are the highest in Nairobi, followed by Thika town. We also find gender gaps in poverty levels in all urban centers. In particular, individuals living in female-headed households are on average poorer than those who live in male-headed households. Our results suggest that comparing living standards across different urban centers based on average poverty estimates masks significant within-urban-center inequalities. Understanding these spatial inequalities in multidimensional poverty is crucial to honing the targeting of anti-poverty policy.