Abstract
Given their limited capacities to cope, low income people can experience major setbacks when hit by even seemingly small shocks and can experience serious losses of wealth and welfare when big shocks strike. And merely the spectre of shocks can lead to underinvestment that makes even a smooth climb out of poverty take much longer than it otherwise might. Briefing Note 34 presents highlights from an analysis of risk within the Kenyan Financial Diaries, considering how 300 low-income people think about, experience and prepare for risks in their lives.