At the time of independence in 1963, the Government of Kenya identified
illiteracy, disease, ignorance and poverty as the main problems to be addressed
in the post-independence era. In spite of the antipoverty measures implemented
since independence, 56 percent of the Kenyan population today remains poor.
Further, despite the numerous studies on poverty measurement and profiles
in Kenya, little is known about the relationship between poverty and
employment. This paper analyses poverty profiles among the employed using
household data collected by the Government of Kenya in 1994 and recommends
a new strategy for poverty reduction. The findings of the study show that
employment in the agricultural and informal sectors is associated with a higher
than average probability of being poor. Households engage in subsistence
farming and off-farm informal activities primarily to cope with, rather than
escape poverty. In common with previous studies, we find a strong negative
correlation between schooling and poverty, which supports the current
government policy of free primary schooling as an instrument for poverty
reduction. We find that although poverty prevalence is insensitive to
employment in agricultural and informal sectors, employment in these sectors
reduces the depth and severity of poverty. The policy implication of this finding
is briefly discussed.