Publication:
Fiscal Incidence Analysis for Kenya: Using the Kenya Integrated Household Budget Survey 2015-16

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dc.contributor.authorWorld Bank
dc.date.accessioned2018-08-20T19:55:24Z
dc.date.available2018-08-20T19:55:24Z
dc.date.issued2018-06-29
dc.description.abstractKenya has made satisfactory progress in reducing poverty and inequality in recent years. Economic growth in Kenya between 2005-06 and 2015-16 averaged around 5.3 percent, exceeding the average growth of 4.9 percent observed for Sub-Saharan Africa. This robust economic growth resulted in a reduction in poverty, whether measured by the national or international poverty line. The proportion of the population living beneath the national poverty line fell from 46.8 percent in 2005-06 to 36.1 percent in 2015-16, showing a modest improvement in the living standards of the Kenyan population. Similarly, poverty under the international poverty line of US$ 1.90 a day declined from 43.6 percent in 2005-06 to 35.6 percent in 2015-16. At this level, poverty in Kenya is below the average in sub-Saharan Africa and is amongst the lowest in the East African Community (World Bank, 2018b). However, the proportion of the population living in poverty remains comparatively high in Kenya and the rate at which growth translated into poverty reduction was lower than elsewhere. At twice the average, Kenya’s poverty rate is still high for a lower-middle income country, a group that Kenya joined only in 2015. In addition, the Kenya’s growth elasticity of poverty reduction, the percentage reduction in the poverty rate associated with a one-percent increase in mean per capita income is only 0.57, lower than in Tanzania, Ghana, or Uganda (World Bank, 2018b). This leads to the obvious question of what can be done to make economic growth more pro-poor in Kenya. This study assesses the distributional consequences of Kenya’s system of taxes and transfers, covering 60 percent of revenue and between 25 and 30 percent of government spending. The analysis of fiscal incidence and distributional consequences of Kenya’s tax and transfer system is an important input for designing pro-poor policies and potentially for influencing the rate at which economic growth translates into poverty reduction. In this study, direct taxes and transfers, indirect taxes (VAT and excise duties), as well as public health and education spending are assessed in terms of their distributional impacts. Overall, these taxes and transfers account for about 60 percent of revenue and between 25 and 30 percent of government spending.en
dc.identifierhttp://documents.worldbank.org/curated/en/868291530853143237/Fiscal-incidence-analysis-for-Kenya-using-the-Kenya-integrated-household-budget-survey-2015-16
dc.identifier.doi10.1596/30263
dc.identifier.urihttps://hdl.handle.net/10986/30263
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo
dc.subjectTAXATION
dc.subjectPUBLIC EXPENDITURE
dc.subjectINCOME TAX
dc.subjectCASH TRANSFERS
dc.subjectVALUE ADDED TAX
dc.subjectEXCISE TAX
dc.subjectEDUCATION SPENDING
dc.subjectHEALTH SPENDING
dc.subjectPOVERTY
dc.subjectINEQUALITY
dc.titleFiscal Incidence Analysis for Kenyaen
dc.title.subtitleUsing the Kenya Integrated Household Budget Survey 2015-16en
dc.typeReporten
dc.typeRapportfr
dc.typeInformees
dspace.entity.typePublication
okr.crossref.titleFiscal Incidence Analysis for Kenya
okr.date.disclosure2018-07-26
okr.doctypeEconomic & Sector Work
okr.doctypeEconomic & Sector Work::Other Poverty Study
okr.docurlhttp://documents.worldbank.org/curated/en/868291530853143237/Fiscal-incidence-analysis-for-Kenya-using-the-Kenya-integrated-household-budget-survey-2015-16
okr.guid868291530853143237
okr.identifier.doi10.1596/30263
okr.identifier.doihttps://doi.org/10.1596/30263
okr.identifier.externaldocumentum090224b085cf5cb8_1_0
okr.identifier.internaldocumentum30226366
okr.identifier.reportAUS0000174
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/868291530853143237/pdf/Kenya-Fiscal-Incidence-Analysis.pdfen
okr.region.administrativeAfrica
okr.region.countryKenya
okr.topicMacroeconomics and Economic Growth::Taxation & Subsidies
okr.topicPoverty Reduction::Inequality
okr.topicPoverty Reduction::Services & Transfers to Poor
okr.unitMacroeconomics, Trade and Investment Global Practice; Poverty and Equity Global Practice
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