By Benadeta Mwaura - Reporter
Kenya, 26 November 2025 - Kenya is staring at a worsening inequality crisis, with almost half of the population now living in extreme poverty, surviving on less than Ksh.130 per day, a new report by Oxfam Kenya warns. The report, ‘Kenya’s Inequality Crisis: The Great Economic Divide’, released on Wednesday, paints a stark picture of a country where wealth continues to accumulate at the very top, while millions sink deeper into deprivation.
According to Oxfam, the richest 125 Kenyans now own more wealth than 42.6 million citizens combined. If that wealth were stacked in Ksh.100 notes, the pile would “cover nearly the entire Nairobi County,” the report notes, a visual illustration of the country’s widening gulf. Meanwhile, a CEO in the ten largest companies earns 214 times more than a teacher, highlighting the scale of income disparity.
Strain Over People
One of the report’s most alarming findings is the impact of heavy financial obligations on public services. In 2024, Kenya’s fiscal pressures reached alarming levels, with Ksh.68 out of every Ksh.100 collected in taxes being absorbed by mandatory commitments , leaving only Ksh.32 to fund all other national priorities.
According to the report, these obligations alone consumed twice the size of the national education budget, and nearly 15 times what the government allocated to the national health sector, severely constraining essential services relied upon by millions of Kenyans. As a result, public spending on essential services has drastically deteriorated.
Government spending per primary school pupil has fallen to just 18% of what it was in 2003, leading to overcrowded classrooms, teacher shortages, and declining learning outcomes. Children from the poorest 20% of households now receive almost five fewer years of schooling than those from the richest 20%.
Healthcare for the Few
The crisis is equally evident in healthcare access. Only 4 million Kenyans are actively contributing to the compulsory Social Health Insurance Fund (SHIF), making them eligible for healthcare benefits. With a population exceeding 53 million, this leaves tens of millions unable to access essential medical services.
The report finds that private health providers are the biggest beneficiaries of SHIF payments. In 2024, public facilities, which serve the majority, received only 20% of insurance reimbursements, while private hospitals absorbed the rest.
Inequality is a Choice
Oxfam Kenya Executive Director Mwongera Mutiga criticised the policy direction that has allowed inequality to worsen. “The gap between the rich and the poor has been allowed to grow unchecked, while millions struggle just to survive. This injustice is no longer tolerable. It is time for bold, decisive action.”
He added: “Inequality in Kenya is not a natural condition; it is the deliberate outcome of unjust policies and political inaction.”
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What Is Driving the Divide?
The report attributes the widening economic gulf in Kenya to a combination of structural and policy failures. Heavy financial obligations continues to drain public resources, leaving little room for investment in essential services.
At the same time, chronic underfunding of education and healthcare has weakened systems that should help lift households out of poverty. The report also highlights weak taxation of the wealthy and large corporations, allowing those with the greatest capacity to contribute to escape their fair share.
Instead, the government has increasingly relied on regressive taxes that disproportionately burden low-income households already struggling to survive.
Compounding the crisis is inadequate investment in agriculture and social protection, sectors that are critical for livelihoods, food security, and resilience among Kenya’s poorest communities.
What's next?
To address the crisis, the report proposes a series of bold policy reforms centered on fairness and redistribution. Key among them is the introduction of a fair and progressive taxation system that targets wealth and high-income earners, ensuring that those with the greatest means contribute more to the nation’s development.
The report also calls for restructuring Kenya's financial commitments to free up critical resources currently swallowed by repayment obligations. Increased investment in public education and healthcare is highlighted as essential to restoring equal opportunity and improving human development outcomes.
Strengthening social protection systems, particularly for vulnerable households, is seen as vital for cushioning families against economic shocks. Additionally, the report urges greater transparency in public finance management to ensure that public funds are used effectively and that citizens can hold leaders accountable.
A Nation at a Crossroads
With poverty levels rising by 7 million people since 2015, the report warns that Kenya risks entrenching a permanent underclass unless urgent reforms are implemented. As Mutiga notes, “Kenya has the resources to ensure dignity for all. What we lack is political will.”
