Wednesday 25th February, 2026 12:35 PM|
National Treasury and Economic Planning Cabinet Secretary John Mbadi has said that Kenya has registered a slow but steady improvement in poverty levels since the COVID-19 pandemic.
Speaking while appearing before the Senate on Wednesday, February 25, 2026, Mbadi has noted that the health crisis reversed all previous development achievements.
He still insists that the targeted economic interventions and recovery strategies are starting to produce tangible results. In a detailed analysis of Kenya’s national poverty levels, Mbadi analysed that it increased to about 42.9 per cent in 2020, representing the great socio-economic shock.
“Due to COVID-19 in 2020, this ratio rose 42.9 per cent but has reduced to 38.9 per cent, according to the latest data. However, this ratio is still high,” Mbadi stated.
Mbadi links the larger downwards trend since the high of 2020 to a combination of intentional fiscal and policy actions to stabilise the economy and safeguard at-risk groups. These involve growth in social protection programmes like cash transfer to elderly and low-income households, subsidies to farmers to obtain subsidised inputs, reforms to increase the efficiency of revenue collection, and policies that are aimed at increasing disposable income and fostering local enterprise.
He points out that, although poverty can be alleviated by mere economic growth, it takes time and involves proper management of state funds and investment in productive areas.
The Treasury identified that enhancing the agricultural sector, creating more employment for the youth, and enhancing access to affordable healthcare are among the main pillars of reinforcing the post-pandemic gains.
Effects of COVID-19
The Kenyan economy was severely affected in March 2020 by the COVID-19 pandemic. Movement restrictions, curfews and the interruption of the global supply chain resulted in contraction in major sectors, especially tourism and hospitality. Kenya was particularly hit by informal workers, who constitute a substantial portion of workers in the labour force.
Weakened tax collection put pressure on the budgets as well, compelling more borrowing to support emergency health care and stimulus spending. Even though economic development has since returned, the developmental course of Kenya still has long-term consequences of missed incomes, learning losses, and more state debt.
CS Mbadi has argued that the post-COVID surge in poverty reduction is evidence of resilience; however, to ensure long-term gain, it will be necessary to maintain emphasis on the policy.
