Inequality has been recognized as one of the most severe risks facing the world. Kenya is no exception. The gap between the richest and the rest has widened dramatically over the last decade, hampering the progress against poverty, ignorance and diseases. While the country has seen a solid economic growth since 2015, a majority of Kenyans are poorer today than they were then. But a few have amassed enormous amounts of wealth. This shows that the problem is not growth but lack of redistribution policies and political will to ensure that those at the bottom are lifted.

Nearly half of Kenyans live in extreme poverty, i.e., on less than KES 130 per day. Yet a few have amassed enormous wealth. The richest 125 Kenyans have more wealth than more than three-quarters of Kenyans, about 43 million people.

With shrinking fiscal space, unsustainable debt levels, high inflation, high cost of living, high unemployment, growing poverty, and climate vulnerability, the future of Kenya’s economy is precarious without urgent action from the government. Public services are increasingly out of reach for many Kenyans, driven by diminishing government investments in education and health.

Although the government has implemented various reforms over time such as free education, social protection schemes, and tried universal health coverage, their impact would have been greater had they been accompanied by adequate spending and proper implementation. Devolution, once hailed as a harbinger of Kenya’s economic and governance transformation with a promise to bring services closer to the people, address historical marginalization, and empower counties to drive regional development, has ultimately fallen short of expectations.

But there is still hope. With a strong political commitment and radical policy reforms, a more equal and prosperous Kenya is within reach. This report unpacks existing inequalities and their structural, historical and political causes, and provides a vision and recommendations that could set Kenya on course to be a more prosperous, equal and fair society.

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