Regional news

Kenya: The big gap

By Dorthe Skovgaard Mortensen

A recent report developed by Society for International Development, documents an enormous inequality in Kenya. It notes that 10% of the richest households in Kenya control more than 42% of incomes, while the poorest 10% control 0.76% of income. This means that while the top rich Kenyan earns about 56 shillings, the bottom poor earns 1 shilling.

Inequality matters for poverty. If a country’s development strategy is based on widespread growth strategy or on a progressive distribution of income, this will have a significant impact on how that country is able to reduce poverty levels among various groups in society.

It is being observed that a country’s initial level of income distribution is an important determinant of future growth prospects. Countries with high levels of inequality, especially of assets, may achieve lower growth rates on average.

Inequality matters for social instability. It is often a significant factor behind crime, social unrest or violent conflicts. Inequalities between clearly defined groups, for example ethnic tribes, may be a source of violent conflicts. All this may threaten a country’s long-term social and political stability.

Inequality matters in its own right. Inequality matters purely on normative grounds and from a moral and ethical point of view. Ideally, people would want to live in a society where everyone is more or less equal and having comparable opportunities in life.