Income Growth and Mobility of Rural Households in Kenya: Role of Education and Historical Patterns in Poverty Reduction



substitute to the low returns from agriculture. Higher education in this case enables quick
recovery from income shocks for those in the high agricultural potential areas.

Given the results of this study, the need for a comprehensive education policy
cannot be overemphasized. While primary school education is important, it is not
sufficient to impact positively on income growth and neither is it adequate in breaking the
cycle of low income persistence for those trapped in poverty. Investments and programs
in education to encourage enrollment and completion of secondary school education are
therefore going to be key for future poverty reduction strategies.

The analysis of the factors that cause income changes over time is important in
trying to understand the causes of poverty and hence devising appropriate pro-poor
policies. While the international environment has powerful impacts on poor countries and
their ability to reduce poverty, the lives of the poor are mostly affected by actions at the
country and local level (Global poverty report, 2000). There is thus need for governments
to design policies which are specific to their circumstances and hence the need for such
localized studies cannot be overemphasized

24



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