Discussion Paper No. 72 of 2007 on a 2003 Social Accounting Matrix for Kenya: Methodological Note

Abstract

A Social Accounting Matrix (SAM) is a consistent data framework that captures information contained in the national income and product accounts and the input-output table, as well as the monetary flows between institutions. A SAM is an ex-post accounting framework since, within its square matrix, total receipts must equal total payments for each account contained within the SAM. Since the required data is not drawn from a single source, information from various sources must be compiled and made consistent. This process is valuable since it identifies inconsistencies between Kenya’s statistical sources and highlights areas where data reliability is weakest. However, the SAM is an economywide database that is typically used in conjunction with analytical techniques to strengthen the evidence underlying policies. The construction of the 2003 SAM was a collaborative initiative between the Kenya Institute for Public Policy Research and Analysis (KIPPRA) and the International Food Policy Research Institute (IFPRI). It formed part of a broader research project to identify potential sources of growth in Kenya.