- Interestingly, the value of food expenditure in rural areas was much more than their counterparts in urban areas.
- The high poverty index is linked to poor wages, with counties in rural and ASAL most affected.
Image: FILE
Families in Western and Nyanza regions are technically living hand to mouth, spending close to 70 per cent of income on food, despite being one of the country's food baskets.
The Kenya Economic Report 2023 dubbed 'Cost of Living and the Role of Markets' by the Kenya Institute for Public Policy Research and Analysis (Kippra) shows all counties in those regions spent an average of 67 percent on food last year.
"Surprisingly, counties in Western and Nyanza regions that are expected to have food spend about two-thirds of their income on food,'' the report reads.
Although the report did not give clear reasons why the regions were spending most resources on food, economic data by the Kenya National Bureau of Statistics (KNBS) links this to high family sizes.
On average, a family in the region has at least five members compared to the national average of three.
Even so, the highest food expenditure was in Turkana (76.2 per cent) and Wajir (71 per cent).
The high cost of food is attributed to the cost of transport, drought and increase in farm inputs.
"This calls for putting in place drought response mechanisms, climate change mitigation, provision of farm inputs, support for smallholder farming, equitable food distribution and national food reserves,'' the report reads.
Overall, food prices account for over half of total spending in the country, rising to over 60 per cent in arid and semi-arid lands (ASALs).
Interestingly, the value of food expenditure in rural areas was much more than their counterparts in urban areas.
Households in rural areas spend more than 60 per cent of their income on food, which is much higher than the 48.8 per cent spent on food by households in core urban areas.
The mean monthly expenditure on food per adult equivalent is 54.3 per cent and for non-food items is 45.7 per cent.
The key components of the living wage include food, shelter, clothing, education, and healthcare. Food prices increased by 35 per cent between 2019 and 2022.
According to the report, increases in the cost of housing as measured by expenditures on rent and amenities are the second most significant driver of the cost of living, having increased by 12 per cent since 2019.
The cost of clothing, health and education services increased by 8, 5, and 4 per cent, respectively, over the same period.
The food expenditure level is somehow connected to the poverty index, with counties that spent more on food during the study period posting the highest poverty indicators.
For instance, the report shows that the ASAL counties bore the greatest brunt of poverty, with over 75 per cent of the inhabitants being poor compared to Nairobi, Kiambu and Mombasa counties with poverty index between 15 and 22 per cent.
"This situation perpetuates the multidimensional poverty and inequalities between rural and urban areas. Raising minimum wages in the agriculture sector will not only raise incomes for workers but also make jobs attractive."
The ASAL counties bore the greatest brunt of poverty, with over 75 per cent of the inhabitants being poor compared to Nairobi, Kiambu and Mombasa counties with a poverty index between 15 and 22 per cent.
These counties are characterized by poor access to infrastructure and social amenities, poor quality of work, insecurity, and poor access to quality health care and education.
The high poverty index is linked to poor wages, with counties in rural and ASAL most affected.
The Kippra report shows most workers still earn below minimum wage, accounting for 77 per cent of total workers, out of which 29 and 71 per cent are in the formal and informal sectors, respectively.
About 22 per cent of the workers in the formal sector earn below minimum wage and account for 29 per cent of minimum wage earners in the labour market.
The minimum wage is revised annually and announced on May 1. It is aimed at improving the standard of living for workers.
However, these reviews have not been consistent to align with the cost of living.
Between 2018 and 2022, a review of minimum wage was only done twice by five per cent in 2018 and 12 per cent in 2022, yet the revision is provided for on an annual basis.