Rono/STRUCTURAL ADJUSTMENT PROGRAMMES IN KENYA

The impact of the structural adjustment
programmes

on Kenyan society

JOSEPH KIPKEMBOI RONOl

ABSTRACT
This article examines the effects of structural adjustment programmes
(SAPs) on Kenyan society. A series of economic and political reforms
initiated by the World Bank and International Monetary Fund in
Kenya since 1988 and especially after 1991 have transformed many
aspects of the daily life of Kenyan people. These programmes have
been linked to the high rate of income inequality. inflation, unemploy-
ment, retrenchment, and so on, which have lowered living standards,
those relating to the material resources in thefamily. Fur-
especially,
thermore,
the SAPs in Kenya have been linked to the increasing deviant
and crime rates, ethnic hatred and discrimination and welfare prob-
lems, especially in the areas of education and health.

Introduction
WHEN KENYA GAINED Independence in 1963, it did so in a period of
global economic expansion and stability. Commodity prices were
generally high and the country benefited from these high prices. In
addition, the country was left with significant foreign exchange reserves
and was therefore able to deal with economic instability.The first decade
after Independence was, therefore, a period of economic prosperity and
high aspirations (Swamy 1994).

In the first decade oflndependence Kenya made tremendous progress
in the area of economic development in that the gross domestic product
(GDP) grew by 6.6 per cent. Savings and investment were relatively
high for its per capita income. The expansion of primary, secondary,

I Depanment of Sociology,Moi University.Kenya

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81

technical and university enrolment has been generally impressive since
1963. For instance, the number of primary schools doubled between
1963and 1983while their enrolment rose almost five times (Ikiara 1990).
In secondary school education,
the number of schools expanded by
almost 14 times between 1963 and 1983, while the number of students
rose from 30,100 to 493,700 in the same period.

Life expectancy at birth, which at Independence was 44 years,
increased to 69 years in the 1980s while the mortality rate of219 deaths
per 1000 live births in 1962 dropped to 68 deaths per 1000 live births by
the 1980s.These indicators reveal that Kenya was well above the average
for sub Saharan Africa (Swamy 1994:196).

While the first ten years of Independence in Kenya are sometimes
referred to as the "Golden Years", marked with an impressive record of
economic growth, the period 1980-1990 is sometimes referred to as the
"lost decade" characterized by severe external and internal difficulties
and challenges that began in 1973. Since the increase of oil prices in
1973, the living conditions of the Kenyan people, as those of most
African countries, have moved from bad to worse. In addition to the
increase of oil prices the 1970s presented Kenya's economy with
challenges and hardships as a result ofthe world recession that followed
the economic crisis of 1970s. These included the fluctuating prices of
the country's major exports,
low levels of technology, drought and
the collapse of the East African
famine, high population growth,
Community, high rates of urbanization,
land
fragmentation, widespread poverty, disease and ignorance. These had
a negative impact on the country's economy. The gross domestic product
per capita fell, followed by food shortages and declining standards of
living. In order to deal with these economic difficulties,
the state
responded in a number of ways, which are reflected in Kenya's
development plans since 1980.

increasing

debt,

The most notable change in the management of the Kenyan economy
was the implementation of the structural adjustment programmes (SAPs)
that began to be introduced during the 1980/81 fiscal years. However,
SAPs did not become an important part of economic management until
after the publication of the Sessional Paper No. 1 of 1986. Since then

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Rono/STRUCTURAL ADJUSTMENT PROGRAMMES IN KENYA

SAPS have been integrated as policy tools for economic management.
The adoption of SAPs was aimed at restoring efficiency in all sectors of
the economy and consequently raising the rate of economic growth
(Central Bureau of Statistics 1997b). According to Stanley Fischer there
are two types of adjustment po(icies,

The short run or microeconomic adjustment, which means basi-
cally adjusting
to living within your means; and structural
adjustment, which means changing the structure of our economy
to enable your means to grow more rapidly (Fischer,April 3, 1989).

Thus structural adjustment programmes consist of a set of economic
policies designed to generate rapid and sustainable economic growth
with macroeconomic stability. SAPs that evolved over the past decade
initially focused on eliminating fiscal and external imbalances and
reviving growth. The implementation
of SAPs has involved the
following main subject areas: the liberalization of prices and marketing
systems; financial sector policy reforms; international trade regulation
reforms; government budget rationalization; divestitureand privatization
of parastatals and civil service reforms (Central Bureau of Statistics
1997b). These elements have so far been implemented invariousdegrees.
Because the market is expected to playa critical role in the growth and
adjustment process, structural adjustment programmes also emphasize
market
liberalization, market competition and the development of the
private sector (Central Bureau of Statistics 1997b, 1999).

development

The key ingredients of structural adjustment programmes are based
on an economic model of private ownership, competitive markets and
an outward-oriented
strategy. Developing free and
competitive markets and liberalizing the price systems are necessary for
allocation efficiencies. A stable macroeconomic environment is also
essential
to allow markets to operate efficiently and investors to make
correct decisions based on market signals. Since 1980 Kenya has
adopted economic reforms designed to achieve macroeconomic and
structural adjustment, as well as economic growth. These programmes
were initiated at the behest of and supported by the International
Monetary Fund and the World Bank.

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Some of the major reforms that have been undertaken by the government
to date include price decontrols; foreign trade liberalization; decontrol
of domestic marketing of agricultural commodities,
customer and
producer prices and decontrol of interest rate and foreign exchange
rates. The latter includes the promulgation ofthe Exchange Control Act
(Central Bureau of Statistics 1997b).

The SAPs are intended in the long run to improve the economy.
However, in the short run, one area that suffers from the immediate
consequences of the SAPs, which has been ignored, is the social aspect
of human development; namely, the erosion of social services, especially
among vulnerable groups, families and individuals.

In the vast majority of sub Saharan African governments,

there is
general agreement regarding the social, political and economic tensions,
coalitions and conflicts, which SAPs have generated. In Zaire, Zambia,
an~ Nigeria, to name a few, adjustment programmes have accentuated
the delegitimization of the state, leading to political violence, riots and
regime turnover and culminating in severe economic dislocation and
deterioration.
among
intellectuals and policymakers in and outside the African continent
that orthodox adjustment programmes, as devised and supervised by
the International Monetary Fund and World Bank, are not working
(WorldBank-UNDP 1993).

is now almost unanimous agreement

ihere

An overview ofthe impact ofstructural adjustment
on the Kenyan economy
These structural adjustment programmes have had numerous effects
on the economy, such as inflationary pressures, the marginalization of
the poor in the distribution of educational and health benefits and a
reduction in employment (Ikiara 1990, Mwega and Ndulu 1994, World
Bank-UNOP1993,Swamy 1994).

The International Monetary Fund and World Bank and the govern-
of
ment of Kenya have criticized
implementation
and their
consequences. The International Monetary Fund and the World Bank,

on the nature

one another

programmes

of structural

adjustment

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Rene/STRUCTURAL ADJUSTMENT PROGRAMMES IN KENYA

on their part, have criticized the Kenya government for undermining the
implementation process by being,

Often lethargic and sometimes acting contrary to the stated poli-
cies; Transparency and financial discipline were not undertaken,
trade reforms were not carried out, the pace was not incremental,
and the commitment of top officials waxed and waned and thus
lack of discipline and transparency dampened or nullified the struc-
tural reforms (Swamy 1994).

This was in a context showing that the adjustments were beginning to
work in that the economy was showing signs of growth.

Within Kenya, the impact of these programmes has been a matter of
controversy. Today, almost 20 years after they were first introduced in
Kenya, they continue to be unpopular because they were accompanied
by a series of conditions that were harsh and rapid. These conditions
are based on economic models that do not fit the Kenyan social structure
In addition, the International Monetary Fund and the
and conditions.
World Bank continue
to the
programmes.

to add objectives

and conditions

For example,

initially these programmes were meant to address
economic problems but have shifted their objectives to political issues,
based on Western political models. Consequently, World Bank reports
moved from its traditional position of focusing purely on economic
matters to emphasizing the needs for popular participation in decision-
making, decentralization of power structures, accountability and the
reduced role of government
in the state economy. It also demanded the
empowerment of popular organizations, the need for special measures
to alleviate poverty and the protection of the vulnerable (Central Bureau
of Statistics, 1998a, b and c; Ihonvbere 1996, Obidegwu 1989).

The government of Kenya argues that the International Monetary
Fund and the World Bank have given them a bitter pill to swallow,
pointing out that the reforms addressed only the long-term implications
of the economy while in the short run causing hardship, especially
among the vulnerable.
the pace provided by the

Furthermore

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85

International Monetary Fund and the World Bank was too rapid: it was
not possible to refonn everything overnight and that adjustments
ignoredthe human side of development. The Kenya government accused
the World Bank of changing the goalposts in the middle of the game,
arguing that the programmes began with economic refonns and ended
with the aim of addressing political problems, using Western politieal
models that ignored the nation's stability and progress.

Despite the fact that a number of studies (Ikiara 1990, Mwega and
Ndulu 1994, Swamy 1994, Ihonvbere 1996) have been carried out to
establish the impact of the SAPs, none of these has examined the impact
of SAPs from the level of the family or individuals. At a more general
level, attention has recently
focused on the negative
consequence of adjustment programmes that do not pay particular
attention to existing socioeconomic and political conditions.

become

In his study of the impact of the International Monetary Fund and
World Bank adjustment policies
in the Third World economies,
Chossudovsky (1997) clearly shows how the structures of the global
economy have fundamentalIy changed since the 1980s. He shows the
consequences of a new financial order which feeds on human poverty
and the destruction of the environment, generates social apartheid,
encourages racism and ethnic strife and undennines the rights of women
(Chossudovsky 1997:10). Though the question of whether adjustments
have worked in Kenya has not yet been resolved, there is no doubt that
they have increased economic stagnation, hardship and social problems.
One of the most important objectives of structural adjustment policies
has been to reduce the budget deficit. Indeed, the servicing of the
domestic debt created an unsustainable burden on the budget during
the 1991-1996-development plan period. Interest payments on foreign
and domestic debt absorbed 23 per cent of the budget in 1995/96 and
were projected to increase to 25 per cent in 1997/98. In fact, the debt
grewby362percent,from Kshs36.7billion at the end of 1990to Kshs 169.4
billion by April 1998.During the 1997/98financial year interest payments
on domestic debt alone amounted to 15 per cent of the total government
expenditure (Central Bureau of Statistics 1999). Such high levels of
domestic debt, together with high interest rates, have had wide-ranging

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Rene/STRUCTURAL ADJUSTMENT PROGRAMMES IN KENYA

the government

negative effects on the economy as interest rate payments on domestic
debt claim a disproportionate share of government expenditure, both
exacerbating
deficit and shifting development
expenditure to the repayment oflollns. Italso reduces private investment
and the supply of loanable funds and increases the price of the funds.
While there has been a general percentage decline of government
expenditure especially on public servants' wages, salaries, administra-
tion, economic and social services as well as on lending and investment,
expenditures to service debts have been increasing. For example, during
1964-1969, wages and salaries consumed 31.7 per cent of the total
government expenditure, as compared to 15.6per cent during the 1990-
1991 period. In the same way,expenditureon economicandsocialservices
declined from 33.3 and 35.0 per cent respectively during the 1975-1976
period and by 1990-1991,
it had reduced to 20.5 and 32.9 percent
respectively.
In contrast expenditure on repaying and servicing debts
increased from 8.3 per cent during 1964-1969 period to 31.8 per cent,
giving no room for investment.

The structural adjustment programme has generally encompassed
reduced relative expenditures on basic needs and social services, mainly
education and health costs. Local products have been subjected to
serious competition from imported ones and often from subsidized
commodities.
In this process, the poor have been exposed to severe
risks such as unemployment and retrenchment.
socioeconomic

Economic decline has gone hand in hand with the depreciation of
the Kenya shilling, rising interest rates, the reduction of government
expenditure,
especially in the development and welfare sectors, the
limiting of wage increases and the reduction of government subsidies
at national level. There is evidence to show that the SAPs have increased
the gap between the rich and the poor as well as the income gap between
the rural and the urban population in Kenya thus increasing poverty.
For instance, data on income expenditure distribution for 1994 (Central
Bureau of Statistics 1999) show that the bottom 20 per cent of the rural
population received only 3.5 per cent of the income whereas the top 20
per cent captured more than 60 per cent of the income. In 1997 the
UNDP's Human Development Report placed Kenya 22nd. from the

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87

bottom with an average per capita income of US$80. The income gap
between the rich and the poor in Kenya is also great: the richest 10 per
cent of Kenyans having earned a total 47.7 per cent of the income.
Kenya was ranked second to Brazil where the rich earned a total of 51.3
per cent of the income.

Decline in employment opportunities
One of the main objectives of accelerating economic development
is to
create employment opportunities for a rapidly-growing labour force.
Despite the government's efforts in this area, the country has been
unable to generate adequate employment opportunities, as shown by
the lowgrowth of waged employment (Central Bureau of Statistics 1997a,
b and c). Between 1964and 1973,waged employment grew by an average
of only 3.6 per cent per year. There was a slight improvement for the
perjod 1974 to 1979 when a growth rate of 4.2 per cent per year was
achieved. Thereafter, however, the average annual growth declined to
3.5 per cent in the 1980s and to 1.9 per cent per year in early 1990s.
Recent rates have been far below the population growth rate, leading to
an accumulation of large numbers of unemployed people. Many of
those who have found jobs in the small-scale agricultural and informal
sectors have been underemployed.

Kenya has, since Independence, relied heavily on the agricultural
sector as the base for economic growth, employment creation and foreign
exchange generation. The sector is also a major source of the country's
food security and a primary concern ofthe government. This is obvious,
given that approximately 80 per cent of the country's population live in
rural areas and depend on agriculture for their livelihood.

During the 1964-1974 period, the agricultural sector contributed 36.6
per cent ofGDP, 1974-1979,33.2 per cent, 1980-1989, per cent and in
1990-1995, 26.2 per cent. Throughout
the 1980s and early 1990s,
expenditure on agriculture
as a percentage of total government
expenditure has declined. Between 1980 and 1987,the agricultural share
of expenditure was 8 per cent, falling to 5.2 per cent between 1993 and
1995(Central Bureau of Statistics 1997a, b, and c). Thus, the agricultural
sector has witnessed a general decline in growth from an average of 4.6

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Rono/STRUCTURAL ADJUSTMENT PROGRAMMES IN KENYA

per cent per annum during 1964-1973 to 0.4 per cent in the 1980-1985
period and it has declined even further in the I990s. This may be due to
the decline of the share of agriculture in GDP noted above.

Although the economy has been creating an average of240,000 jobs
every year, the number of people unemployed is currently estimated at
2.7 million and the labour force is increasing by nearly half million jobs
every year. In addition,
the declines in the average size of landholding
in smallholder agriculture and the increase in the number of households
have exacerbated the incidence of underemployment in the rural areas.
This has, in turn, led to an increase in the number of the poor. Despite
the seemingly large number of jobs created in the informal sector and
smallholder agriculture, many people in such jobs must be considered
as the working poor.

The decline in the economy, in agriculture and in the manufacturing
sectors have adversely affected employment both in the public and
private sectors. The rapid and comprehensive economic reforms that
Kenya is undertaking have led to significant changes inthe employment
situation such as the increased participation of women in the labour
force and the rise of unemployment, especially among the youth (Central
Bureau of Statistics 1997b).

The participation rates of urban women in employment rose from 30
per cent in the early 1980s to 56 per cent in 1995. However, women's
employment
is still characterized by low productivity, low pay and long
hours of work. Rural women still spend a disproportionate amount of
their
limiting their access to income-earning
opportunities. They also have a limited role in formal employment, while
off-farm work often compromises their traditional roles.

time on unpaid work,

The increasing number of youth raises an additional employment
problem. Already, youth are disproportionately represented among the
unemployed. For example out of 450,000 pupils who complete primary
school each year, only 150,000 proceed to secondary schools ~h~le
youth polytechnics can only cater for 40,000. As a resu~t:the maJ~nty
of the youth remain unskilled: this inhibits their opportunItIes for gamful
employment
in either the formal or informal sectors (Central Bureau of
Statistics

I997a, b and c).

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among the youth, especially

Among other changes, a large proportion of the labour force is joining
the informal sector (Central Bureau of Statistics 1997a). The government
has liberalized some aspects of the labour market, leaving market forces
to determine appropriate wage levels. The low levels of unemployment
in the rural areas are a reflection of the corresponding high levels of
underemployment
in family-owned
enterprises such as farms (UNICEF 1998). Estimates based on the 1988-
1989 labour force surveys show that employment
in the small-scale
agriculture and pastoralist sector rose from 5.9 million in 1992 to 6.2
million in 1996.However, the sector's share of total employment declined
from 68 per cent in 1992to 59 per cent in 1996 due to a significant shift
from rural small-scale farming activities to the informal sector. In fact, by
1996, unemployment was estimated at 19 per cent. Indeed, the reversal
from the low unemployment of the 1970s and the 1980s is largely a
result of the adjustment programmes.

on crime and

adjustment programmes

The impact ofthe structural
deviant behaviour
The result of the SAPs on the economy has been the stagnation in real
per capita income growth, which is mainly linked to increasing poverty
and unemployment that is associated with the upsurge of the "culture
of violence" and resultant crime rates in Kenya. The comprehensive
implementation of the SAPs between 1991 and 1993 were immediately
followed by a jump in the number of criminals and crime rates~ which
also went down slightly in 1994as the economy also improved. Statistics
show that the total number of prisoners in Kenya shot up from 106,200
in 1989 to 111,712 in 1991 to 115,689 in 1992 to 124,949 in 1993 and
jumped to 130,173 in 1994before dropping to 118,050 in 1995, when the
economy slightly improved (Central Bureau of Statistics 1996). At the
same time the total number of criminal offences reported to the police
increased from 89,533 in 1989to 91,404 in 1991 to a high of 101,966 in
1992before dropping to 94,702 in 1994.

During the same period, although violent crimes and other offences
against persons showed a general decline, property crimes generally
increased between 1989 and 1993. As the economy improved in 1994,

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Fig. 1: Reported cases of violent crime In Nairobi

S 450
a:
CD.!ii

..
..
300U-c'"0 150

600

:>

1990

1992

1994

1996

1998

SOURCE: CENTRAL BUREAU OF STATISTICS, (1998d)

crimes against persons, such as murder (including attempted murder),
rape (including attempted rape) began to go up again, while violent
crimes such as manslaughter and assault continued to decline.

In Nairobi

the reported cases of violent crimes showed the same
trend, but indicated another jump from 336 cases in 1994to 420 in 1995;
440 in J 996 to 539 and 5600 in 1997and 1998respectivelyas shown in
I. On the other hand most property crimes such as robberies,
Fig.
housebreaking,
theft of money worth over Kshs400, theft of vehicles,
bicycles, produce,
theft by servants, receiving stolen property and
offences against property also recorded a reduction in number of cases
in 1994. The only exception of property crimes that showedan increase
in 1994 was the theft of stock other than cattle.

The impact ofthe structural adjustment programmes on education
Since Independence Kenya has made tremendous progress in the area
of education as measured in the number of educational institutions and
enrolments in primary and secondary schools, tertiary institutions and
universities, as well as in the general improvement in literacy rates. At
Independence education in the new nation was seen as a prerequisite
necessary for the overall development of the country. The government
emphasized the need for all citizens to team up to build schools and
educate the children. Education was therefore integrated in the five-

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91

year government development plans and was also taken seriously by
both the government and the people of Kenya.

institutions,

A feature of Kenya's formal education and training systems since
the attainment of Independence has been the rapid growth in enrolment
at all levels of educational
resulting in corresponding
increase in educational expenditure. For instance, the share of recurrent
expenditure on education in Kenya more than doubled from about 15
per cent in 1960sto 30 per cent in 1980to 35 and 40 per cent in 1987 and
1995respectively, becoming a major burden on the taxpayer. In spite of
the impressive progress the government of Kenya has made in the field
of education, however, significant educational issues, which have not
been adequately addressed, remain and new ones have emerged that
warrant immediate attention. Perhaps one of the most crucial barriers to
both educational access and success is the issue of inequality in the
provision of education.

At Independence in 1963, the entire primary school enrolment was
just under900,000while secondaryeducation was only 30,000. Incontrast,
by 1980, the corresponding numbers were 3.9 million and 400,000,
respectively, representing average growth rates of 9 per cent and 16.5
per cent. In order to cope with these enrolments, the government rapidly
expanded university education. Thus, from a single university in 1970
with a total student population of 5,000, the corresponding population
roseto41,000by 1995CentralBureauof Statistics 1999).This tremendous
increase in enrolment rates at all levels of learning created interrelated
problems, especially with respect to the cost and quality of education
and employment opportunities. The increasing cost of education has
witnessed increasing rates of gender bias, non-enrolment,
grade
repetition and dropout rates that have began to increase at all levels of
education, particularly among children from poor families whose parents
cannot afford to raise the required funds for their education.
Through the policy of cost-sharing, structural adjustment programmes
are linked to increasing rates of non-enrolment, grade repetition and
dropout
institutions, especially at the primary level.
Further, the marginalization of the poor in terms of education and the
decline in quality of education in Kenya is also associated with these

in educational

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Table I: Increase of health specialists from 984 to 1985

Health specialist
per 100,000 people

Doctors
Dentists
Pharmacists
Registered
State enrolled nurses

nurses

1964

7.8
0.3
1.6
22.8
29.9

1965

14.7
2.6
5.2
26.4
85.4

programmes. Those who failed to enrol, complete or dropout of school
find it difficult to secure employment, generally become fiustrated and
often end up as social misfits (Rono 1992). All these factors lead
eventually to children from well-to-do families taking up educational
opportunities at higher levels at the expense of those from poor families.
In the long run this promotes social inequality and underdevelopment.

The impact of structural adjustment programmes on health
At Independence the area of health was one of three priority sectors,
the other two being education and poverty, that needed urgent attention
in order to address the inequalities created by the colonial administration
and development. Health was targeted because good health constitutes
one of the basic human needs and contributes significantly towards
enhancing
and maintaining the productive potential of a people.
Improved health has a positive impact on longevity, adult productivity,
earnings,
the quality of life and socioeconomic development (World
Bank-UNDP 1993:317).

The government's commitment towards the improvement of health
was demonstrated by the "free" health services introduced soon after
Independence. Members of the public were encouraged to participate
in constructing health centres, clinics and hospitals and government
trained nurses, medical officers and doctors.
In this way, health
structures and personnel

increased, as Table I showS.

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facilities

that

the economic

Although the medical

As a result of significant increases in medical personnel, facil ities and
improvements from Independence to 1993, the crude death rate dropped
from 20 to 9 per 1000while that of infant mortality declined from 120 to
60 per 1000live births and life expectancy increased from 40 to 60 years.
and personnel have shown an
the oil crisis of 1973, the
impressive expansion since Independence,
crisis
high rate of population growth and, recently,
associated with the structural adjustment programmes have placed heavy
pressure on a budget
is already in deficit. The government's
response has been further cuts in its expenditure on social services,
especially in health and education. Consequently,
the quantity and
quality of medical and other services has deteriorated substantially,
negatively affecting the Kenyan people in general and particularly the
poor and other vulnerable groups. In 1988 the government was forced
to promote the idea of cost-sharing to the health sector so that
the
beneficiaries would have to pay part of the cost of health, especially of
the other part, mainly the costs of
medication and the government
personnel. While one of the main requirements
for the Kenya
in the SAPs was to rationalize and reduce expenditure,
government
government
to do so without worsening
has found it difficult
socioeconomic, health and political problems.

The impact of structural adjustment on politics in Kenya
The adjustment programmes in Kenya have ushered in political pluralism,
greater democracy, accountability and respect for human rights. But
the programmes have heightened ethnic tensions, polarized communities
and increased violent ethnic clashes that resulted in hundreds of people
dead and thousands displaced. Furthermore, the programmes have also
attenuated national leaders into a kind of tribal chief. Today, tribalism
has permeated all sectors of development and is now one of the greatest
obstacles to economic growth and expansion.

The impact ofstructural adjustment on poverty
It is estimated that the prevalence of absolute poverty in the country
has been rising. The total population below the absolute poverty line in

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1994 is estimated at 11.5 million of which 10.3 million are in rural areas
(~~ntral Bureau of Statistics 1998a). In rural areas the number ofpeople
hvmg below the absolute poverty line was estimated to have increased
from 40.2 per cent in 1982to 46.4 per cent in 1992.Withinurbanareasthe
incidence of absolute poverty was estimated at around 29.3 per cent in
1992. By 1992 an estimated I I million Kenyans, or about 43 per cent of
the entire population, were living below the absolute poverty line(Central
Bureau of Statistics 1998a).

The impact of this economic decline has been increased inflation,
poverty, unemployment, underemployment,
retrenchment and forced
retirements. Although the government was committed to the reduction
eradication
and eventual
of poverty in Kenya immediately after
it has experienced difficulties in implementing its plans.
Independence,
Consequently,
poverty has not only persisted,
it has also increased
sig!J.ificantlyin the I990s, negatively affecting all sectorsof development
and the family unit in particular.

the GDP and real

Measures by the state to deal with poverty
The first aim of the independent government was to improve the
standards ofliving of the people of Kenya through education and health,
increasing
incomes and creating employment
opportunities. These goals have dominated all five-year plans and the
different economic phases. In the first 10years Kenya pursued a mixed
economy policy; a pro-capitalist development path aimedat maximizing
economic growth (Mwega and Ndulu 1994). The strategy was contained
in a Sessional Paper entitled African Socialism and its Application to
Planning
in Kenya. published in 1965. In this model economic
development was to be achieved through the trickle-down process.

A World Bank report in 1975 acknowledged the progress that Kenya
had made since Independence but also identified unemployment,
poverty and income distribution as the disappointing:
The need for a poverty eradication plan arises from the persistence of
poverty, mainly as a result offailures in implementation rather than ~he
design of plans and aims (Central Bureau of Statistics 1999).Accordmg
to the National Poverty Eradication Plan. 1999-2015 (Central Bureau

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95

of Statistics 1999) the objectives of the National Development Plans
and the National Policy Frameworks have been:

Too lofty and macro in their focus to be able to address how the
macro structural afid socially contextualized problems translate
into micro problems of equity, and access to economic opportuni-
ties and social services for the poor and vice versa (Central Bureau
of Statistics 1999, my emphasis).

As opposed to the previous National Development Plans and other
attempts to address poverty and disadvantage,
the National Poverty
Eradication Plan 1999-2015 (Central Bureau of Statistics 1999) bridges
the gap to address the needs of the poor. In addition,
it analyses the
context of past efforts to combat poverty and recognizes the need to
overcome multiple constraints placed by sectors and institutional
settings. Furthermore,
it focuses on policies and sets operational
priorities, seeking to achieve pro-poor economic growth and services
that were absent in previous attempts.

The plan signals government's determination to address poverty,
not only as a political necessity and moral obligation, but also on the
grounds of sound economic principles that recognize the critical role
and potential contribution of the poor to national development. But
while government is committed to eradicating poverty at the structural
level inthe longrun, the most vulnerable groups, families and individuals
in the meantime are facing the negative impact of economic and social
stress and particularly that of the chronic scarcity of material resources
inthe family.

Conclusion
In spite of the impressive economic achievement in the first two decades
ofIndependence, the last two decades have witnessed a general decline
in the economy, which has impacted negatively in nearly all areas of
development. This is mainly attributable to the introduction of the SAPs
in 1980sand particularly in the 1990s.
. These have affected the economy through declining government
expenditure, especially on public servants'
salaries, administration,

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Rene/STRUCTURAL ADJUSTMENT PROGRAMMES IN KENYA

to severe

socioeconomic

economic and social services and increased government lending and
expenditures to service debts. Families and the vulnerable have been
exposed
risks such as inflation and
unemployment, which have worsened poverty and increased regional
differentiation as well as the gap between the rich and the poor. The
SAPs have been linked to the stagnation inreal per capitaincomegrowth,
which is mainly associated with increasing poverty and unemployment
and is related to the upsurge of the "culture of violence" and the
deviance and crime rates in Kenya, particularly of violent crimes.

Furthermore,

the declining economy has been associated with
in
increasing rates of non-enrolment, grade repetition and dropout
educational
institutions, especially at the primary level. Moreover,
marginalization of the poor in terms of education and the decline in
quality of education in Kenya is also linked to the SAPs. With the
vigorous implementation ofthe SAPs in I990s, the quantityand quality
of medical and other services have deteriorated substantially. While
one of the main aims of the SAPs was to rationalize and reduce
government's expenditure, government has found it difficult to do so
without worsening human misery. The SAPs have reduced the once
respected national leaders to the status of tribal chiefs and heightened
ethnic tensions, regrouping and violent clashes that resulted in hundreds
of people dead and thousands displaced.

and Health Survey,

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