NAIROBI, Kenya – A staggering new report released on Wednesday, November 26, 2025, reveals that just 125 of Kenya's wealthiest individuals hold more wealth than 42.6 million citizens combined. The analysis, titled "Kenya's Inequality Crisis: The Great Economic Divide," was published by Oxfam Kenya and paints a stark picture of a nation where the benefits of a decade of economic growth have been disproportionately captured by a small elite, leaving millions further behind.

According to the findings, the top 1% of Kenyans captured nearly two-fifths of all new wealth generated between 2019 and 2023. This concentration of resources occurs as nearly half the population survives on less than KSh 130 per day. The report further notes a grim milestone: since 2015, an additional seven million people have fallen into extreme poverty, a 37% increase that Oxfam describes as an "urgent national crisis."

The economic pressures on ordinary Kenyans are compounded by a severe cost of living crisis. Food prices are now 50% higher than they were in 2020, while the average worker's real-term wages have shrunk by 11% due to inflation. Low-income households in Nairobi have been hit hardest, experiencing inflation rates 27% higher than their wealthier counterparts over the past four years.

Drivers of the Divide

The report attributes the widening gap to a combination of deliberate policy choices and systemic failures. A key factor identified is the chronic underfunding of essential public services, including education, healthcare, and agriculture. Oxfam's analysis shows that in 2024, a staggering KSh 68 out of every KSh 100 collected in taxes was allocated to servicing government debt. This expenditure is double the national education budget and nearly 15 times the health budget.

This has had devastating consequences. Government spending per primary school pupil has plummeted to just 18% of its 2003 level. As a result, children from the poorest 20% of households now receive almost five fewer years of schooling than those from the wealthiest families. Healthcare access remains profoundly unequal, with less than 10% of the population actively contributing to the Social Health Insurance Fund (SHIF).

The report also highlights extreme disparities in the labour market. The average CEO of one of Kenya's ten largest companies earns 214 times more than a public school teacher. This income gap, coupled with what Oxfam calls a regressive tax system that burdens the poor, has accelerated wealth concentration at the very top.

Regional Context and Economic Outlook

While Kenya has experienced an average GDP growth of 5% per year over the last decade, the report argues that without significant redistribution, this growth will continue to enrich the wealthiest while deepening poverty for the majority. The Gini coefficient, a measure of income inequality, rose to 38.9% in 2021, according to the Kenya National Bureau of Statistics (KNBS), approaching a level analysts consider a risk for social dissatisfaction. The overall poverty rate stood at 39.8% in 2022, affecting over 20 million individuals.

The situation in Kenya reflects a broader trend across East Africa, where wealth is increasingly concentrated while public services are cut. According to Oxfam, the richest 10% of East Africans earn 47% of the pre-tax national income, while the poorest 50% earn just 13.3%.

In response to the findings, Oxfam Kenya Executive Director Mwongera Mutiga stated that the country's inequality is a product of policy failures, not an inevitability. "The gap between the rich and the poor has been allowed to grow unchecked, while millions struggle just to survive," Mutiga said. "This injustice is no longer tolerable. It is time for bold, decisive action."

The report calls for a series of reforms, including the implementation of wealth taxes, increased investment in public services, and strengthening tax progressivity by raising capital gains tax. It urges the government to prioritize policies that ensure economic growth is shared more equitably to build a more prosperous and fair society for all Kenyans.