Poverty remains rampant in the dry districts of Kenya so that it has now become an important item on Kenya’s development agenda. The dry districts of Kenya receive low amounts of rainfall, which is also erratic. These regions are predominantly occupied by pastoralists and agro-pastoralist communities. Seasonal climatic variability effects these groups differently and therefore impacts on their livelihoods differently. We report in this study the relationship between seasonal climatic variability and poverty in pastoralist and agro-pastoralist communities of Baringo district, Kenya. There was more poverty in the dry than wet seasons. In addition, the number of livelihood sources, distance to market, ownership of livestock enclosure were positively related to per capita daily income. Cultivators were better off than non-cultivators, while education level and access to extension sources positively influenced household income. We recommend a diversification of household livelihoods sources, increase in school enrolment, encourage practising family planning and birth control as measures to alleviate poverty in the semi-arid areas of Kenya.