Kenya’s economic trajectory over the last three decades reveals a stark and unsettling paradox. Between 1994 and 2004, the nation experienced a synchronised deterioration in living standards; income inequality and extreme poverty rose in tandem, with poverty peaking at 44.6 per cent.
The early 2000s signalled a clear crisis point where wealth gaps widened alongside deepening destitution.
However, the narrative shifts dramatically after 2014. While inequality began a generally steady decline—dropping from highs in the mid-40s to a low of 36.3 recently—poverty rates did not follow suit.
Instead, extreme poverty has surged with alarming aggression. After a brief period of relief where the headcount dropped to 37.7 per cent in 2014, it has since skyrocketed, climbing to a historic high of 46.5 per cent.
This divergence suggests that while the statistical gap between the top and bottom tiers may have narrowed slightly according to the Gini coefficient, the absolute condition of the most vulnerable has significantly worsened.
The recent slight uptick in inequality to 38.7, combined with record-high poverty rates, highlights a critical reality: the benefits of economic shifts are failing to reach those at the very bottom, leaving nearly half the population in extreme financial distress.
