IMPACTS OF NATIONAL GOVERNMENT POVERTY REDUCTION STRATEGIES ON URBAN POOR: A CASE OF ELDORET MUNICIPALITY, KENYA

Abstract

Poverty for many years has been associated with rural areas with little focus on urban poverty. A study to assess inequality in Kenya, estimated percentage of urban poverty in Eldoret municipality at 35.5% with a population of 79.9% living in core urban and 20.1% in peri-urban regions. World Bank estimated the pace of poverty reduction in Kenya at 1% per year. Kenya has a goal through vision 2030 to reduce poverty to lower levels. Eliminating poverty will require a higher rate of poverty reduction and increased focus on poverty reduction strategies rather than focusing on poverty rates based on percentages. This study was aimed at establishing impacts of national Government Poverty Reduction Strategies on Urban Poor in Eldoret municipality. The objectives were; to highlight the national government poverty reduction strategies in Eldoret municipality, to analyze the impacts of Constituency Development Fund (CDF), Older Persons Cash Transfer (OPCT) and National Hospital Insurance Fund (NHIF) in reducing urban poverty, to state the challenges faced in implementing these strategies and to develop a pro-poor urban poverty reduction strategy model. The department for international development (DFID’s) Sustainable Livelihoods Approach Theory was used to guide the study. A conceptual framework was designed to guide this study. Descriptive research design was adopted for the study. A sample size of 273 respondents was arrived at using Fischer’s formula (1999). The study used cluster sampling for household heads, snowball sampling for OPCT and purposive sampling for key informants. Primary tools for data collection included structured questionnaires and Key informants’ interviews. Data was analyzed using SPSS Version 23 for descriptive statistics and results presented using frequency tables and figures. The study findings showed that CDF has promoted education of all learners in primary, secondary, tertiary institutions and higher learning at (98%) though it was not a common livelihood strategy. OPCT has reduced poverty at (84.5%) through promotion of sustainable income. NHIF provided health insurance for most respondents and their dependence and improved their health at (69.0%). The major challenge faced in implementation of these strategies is that, funds allocated were not enough (45.0%). Microfinancing, seminars for education on poverty reduction and setting up dispensaries in every estate was a popular pro-poor poverty reduction strategy. The study formulated a pro- poor poverty reduction strategy model to aid in poverty reduction. Generally, Poverty reduction strategies has reduced urban poverty in Eldoret municipality. The study recommends evaluating the peoples’ willingness to enrol in NHIF compared to other health care insurances and the need assessment to have CDF and OPCT get enhanced mandates on Poverty reduction in Uasin Gishu County.