Treasury Cabinet Secretary John Mbadi has told the Senate that Kenya has made steady progress in reducing poverty, but warned that more work remains to secure lasting gains.

Appearing before the plenary, on Wednesday, February 25, 2026, Mbadi outlined trends showing a gradual decline in the national poverty headcount ratio over the past decade. According to an X post by the National Treasury and Economic Planning, he said poverty fell from 54.9 per cent in 2009 to 36.1 per cent in 2015/16, and further to 33.6 per cent in 2019.

“In his submission, the CS outlined Kenya’s poverty trends, noting that the poverty headcount ratio declined from 54.9% in 2009 to 36.1% in 2015/16, and further to 33.6% in 2019 , reflecting sustained, targeted interventions over time,” the X post read.

He said the government will accelerate poverty reduction through both direct and indirect measures. These include social protection transfers to vulnerable families, expanded access to affordable credit, and investments across agricultural value chains.

Mbadi pointed to irrigation expansion and rehabilitation projects as key to strengthening food security and rural incomes. He also cited targeted empowerment initiatives such as the NYOTA programme, which aims to support enterprise development and youth opportunities.

Monetary policy supports inclusion

The CS also linked poverty reduction efforts to monetary policy decisions. He said the Central Bank Rate was reduced from 13.0 per cent to 11.25 per cent in December 2024. According to the Economic Survey 2025, the move contributed to a 1.4 per cent increase in credit to KSh 7,140.3 billion by December 2024.

Subsequent adjustments have lowered the rate further to 8.75 per cent as of February 2026. Mbadi said the changes have enhanced liquidity in the economy and improved access to credit for households and businesses.

Mbadi stressed that prudent fiscal management and equitable resource allocation will anchor future efforts. He said the government will continue to align spending with poverty reduction priorities while safeguarding economic stability.

The Treasury’s update comes as lawmakers intensify scrutiny of public spending and demand measurable results from national development programmes.