Only 125 Kenyans hold more wealth than 42.6 million of their fellow citizens, according to a new report by Oxfam Kenya, highlighting the country’s deepening economic divide.
The report, titled Kenya’s Inequality Crisis: The Great Economic Divide, reveals that nearly half of the population survives on less than Sh130 a day, with the number of people living in extreme poverty rising to seven million since 2015.
Rising food prices, which are now 50 per cent higher than in 2020, have left ordinary households struggling to cover basic needs. The report notes that chronic underfunding of critical sectors—such as education, healthcare, and agriculture—has exacerbated inequality, as resources are increasingly diverted to debt repayment.
Oxfam Kenya’s findings indicate that the richest 125 Kenyans control more wealth than 77 per cent of the population, while CEOs of the ten largest companies earn 214 times more than a teacher on average. Meanwhile, poverty continues to grow, with seven million more Kenyans living in extreme poverty than in 2015.
Government spending patterns further highlight the disparity. In 2024, Sh68 of every Sh100 collected in taxes went toward servicing debt—double the education budget and nearly 15 times the national health budget. As a result, children from the poorest 20 per cent of households receive almost five fewer years of schooling than those from the wealthiest 20 per cent. Government spending per pupil in primary schools is just 18 per cent of what it was in 2003.
Healthcare access remains limited, with only four million Kenyans actively contributing to the compulsory Social Health Insurance Fund (SHIF). Most contributions benefit private providers, with only 20 per cent of SHIF funds reaching public health facilities that serve the majority of the population.
Oxfam Kenya Executive Director Mwongera Mutiga emphasized that inequality is not inevitable but the outcome of unjust policies and political inaction.
“The gap between the rich and the poor has been allowed to grow unchecked, while millions struggle just to survive. Reducing inequality is not only possible, but it is urgent and long overdue,” he said.
The report highlights that between 2014 and 2024, 17 million Kenyans experienced moderate to severe food insecurity, with inflation hitting low-income households hardest. In Nairobi, inflation for low-income earners was 27 per cent higher than for upper-income earners between 2020 and 2024. Only nine per cent of Kenyans have social protection, and just a fifth of the poorest receive state assistance. The Inua Jamii programme, which supports 1.9 million people, offers a Sh2,000 monthly stipend that has not kept pace with a 4.6 per cent annual inflation rate.
Gender inequality is also entrenched. Women earn 65 per cent of what men do, are five times more likely to perform unpaid work, and fewer than a third own property. Patriarchal norms, unpaid care responsibilities, and limited access to resources continue to hinder women’s workforce participation.
Oxfam warns that recent tax reforms have worsened inequality. Flat-rate taxes on housing and health disproportionately affect low-income earners, while property owners benefit from reduced rental income tax rates. Consumption taxes like VAT, which impact the poor more heavily, now account for over half of national revenue.
The report traces Kenya’s inequality to its colonial legacy, which concentrated wealth and political power in the hands of settlers while excluding local communities. It recommends measures such as reducing inequality by two per cent annually alongside a two per cent economic growth rate to accelerate poverty reduction. It also calls for increasing education spending to at least 20 per cent of government expenditure, scaling per-pupil capitation to match inflation, and raising the health budget to 15 per cent while progressively achieving Universal Health Coverage.
Mutiga concluded, “Inequality is not inevitable; it is a choice. With bold leadership, the right policies, and unwavering political will, Kenya can build a future where every person thrives. By embracing progressive taxation, investing in education and healthcare, creating dignified jobs, and advancing land justice, we can create a fairer Kenya.”
Oxfam warns that unless decisive action is taken, rising poverty, widening inequality, and persistent social and economic exclusion will continue to threaten social mobility, economic growth, and democratic stability.
