Treasury Cabinet Secretary John Mbadi addressed the Senate, highlighting Kenya’s steady progress in reducing poverty while emphasizing the need for continued efforts to achieve sustainable improvements.
During his appearance before the plenary on Wednesday, February 25, 2026, Mbadi presented data indicating a gradual decline in the national poverty headcount ratio over the past decade. In a post shared by the National Treasury and Economic Planning, he reported that poverty decreased from 54.9% in 2009 to 36.1% in 2015/16, and further to 33.6% in 2019.
“In his submission, the CS detailed Kenya’s poverty trends, illustrating a decline in the poverty headcount ratio from 54.9% in 2009 to 36.1% in 2015/16, and subsequently to 33.6% in 2019. These figures reflect sustained and targeted interventions over time,” the post stated.
Mbadi outlined the government’s commitment to accelerating poverty reduction through a combination of direct and indirect measures. These strategies encompass social protection transfers to vulnerable families, enhanced access to affordable credit, and investments in agricultural value chains.
He identified irrigation expansion and rehabilitation projects as pivotal in bolstering food security and improving rural incomes. Additionally, he referenced targeted empowerment initiatives, such as the NYOTA programme, designed to foster enterprise development and create opportunities for youth.
Linking monetary policy decisions to poverty reduction, the CS noted that the Central Bank Rate was lowered from 13.0% to 11.25% in December 2024. According to the Economic Survey 2025, this adjustment facilitated a 1.4% increase in credit, raising it to KSh 7,140.3 billion by December 2024.
Following subsequent adjustments, the rate has further decreased to 8.75% as of February 2026. Mbadi asserted that these changes have enhanced liquidity in the economy and improved access to credit for households and businesses.
He underscored that prudent fiscal management and equitable resource allocation will be essential for anchoring future efforts. The government will continue to align its spending with poverty reduction priorities while ensuring the maintenance of economic stability.
This update from the Treasury arrives as lawmakers intensify their scrutiny of public spending, demanding measurable results from national development programmes.
