Loading News Article...
We're loading the full news article for you. This includes the article content, images, author information, and related articles.
/
/
We're loading the full news article for you. This includes the article content, images, author information, and related articles.
A new report reveals that an average UK worker would need to save all their earnings for over five decades to accumulate the wealth of the richest 10%, highlighting significant and growing wealth disparities.
Nairobi, Kenya – A recent study by the Resolution Foundation indicates that an average worker in the United Kingdom would need to save their entire earnings for 52 years to achieve the same level of wealth as the richest 10% of society. This stark finding, based on an analysis of the Office for National Statistics’ (ONS) latest wealth and assets survey covering 2020-2022, underscores a widening wealth gap in Britain.
The influential think tank's report highlights that wealth disparities in Britain are now so substantial that a typical full-time employee, even by saving all their income throughout their working life, would still fall short of reaching the top tier of wealth.
While the report focuses on the UK, wealth inequality is a pertinent issue in Kenya. Data from the Institute of Economic Affairs (IEA) in 2022 indicated that Kenyans earned an average of KSh 72,130 per month. However, other reports present varying figures, with the Kenya National Bureau of Statistics (KNBS) reporting an average monthly income of KSh 20,123 in December 2022, following economic recovery from the COVID-19 pandemic. The average monthly salary in Kenya across various sectors is estimated to range between KSh 30,000 and KSh 130,000.
Kenya has been ranked among the 10 most unequal countries globally and the most unequal in East Africa, with a significant disparity where a rich Kenyan earns 56 shillings for every shilling a poor Kenyan earns. The Kenya Demographic and Health Survey (KDHS) in 2022 measured wealth inequality with a Gini coefficient of 28%, noting higher inequality in rural areas (24%) compared to urban areas (10%). Conversely, the Kenya Continuous and Household Survey (KCHS) 2021, which assesses consumption expenditure inequality, found a Gini index of 38.9%, with urban areas exhibiting higher inequality (37.3%) than rural areas (29.1%).
Analysts suggest that such developments, both in the UK and globally, could influence public debate and policy execution. Stakeholders are urging clarity on timelines, costs, and safeguards to address these growing disparities. In Kenya, addressing wealth and income inequality is crucial for social justice and human rights, as it often leads to discrimination and exclusion.
The Economic Recovery Strategy for Wealth and Employment Creation (2003-2007) recognised bad governance and economic mismanagement as social maladies that disproportionately affect the poor. Effective public policy, with a conscious focus on equity, is essential to prevent rapid economic growth from marginalising segments of society and exacerbating poverty.
The Resolution Foundation report highlights that the UK's wealth expansion, reaching £17 trillion in 2020-2022, has been primarily driven by rising asset values and low interest rates, rather than wage growth. This trend has exacerbated intergenerational inequality, with the wealth gap between those in their early 30s and early 60s more than doubling between 2006-2008 and 2020-2022. Similarly, in Kenya, while a minority accumulate wealth, the benefits of economic growth have not consistently trickled down to the broader population.
The Office for National Statistics (ONS) has acknowledged challenges in estimating property wealth in the latest UK survey round and has suspended the accreditation of the Wealth and Assets Survey from the 2020-2022 period onwards due to concerns about data quality at granular levels and decreasing response rates. This raises questions about the full accuracy and representativeness of some of the detailed findings. In Kenya, comprehensive data on assets, particularly housing and land, remains scanty, making a complete analysis of wealth inequality challenging.
The ongoing discussions around wealth distribution are likely to intensify, particularly in the UK, as the Resolution Foundation's report comes seven weeks before a significant budget announcement. In Kenya, continued efforts to collect robust and comprehensive data on wealth and assets are crucial for developing targeted policies to address inequality effectively. Monitoring the impact of economic policies on wealth distribution and intergenerational equity will be key in both contexts.
