Rising wealth inequality in Kenya

A new report from Oxfam International has unveiled an alarming level of wealth inequality both globally and particularly in Kenya. The report highlights the stark reality that only two wealthy individuals in Kenya possess more wealth than a staggering 16.5 million citizens, emphasizing the enormous gap between the country's affluent and the impoverished. John Kituy, the Country Director at Oxfam Kenya, discussed these findings in an exclusive interview with CNBC Africa. The report paints a grim picture of the economic landscape, with the richest individuals dramatically increasing their net worth during the pandemic, while billions of people worldwide plummeted into poverty. In Kenya, the wealthiest individuals have seen their fortunes soar exponentially, with two individuals amassing wealth surpassing that of millions of their compatriots. This exponential rise in wealth among the rich contrasts sharply with the reality faced by two million Kenyans who have fallen below the poverty line amidst the COVID-19 crisis. The disparity in wealth distribution has reached alarming levels, impeding efforts to combat inequality effectively. John Kituy was visibly shocked by the findings, citing the doubling of wealth among the top earners as 'obscene' and 'crippling our ability to fight inequality.' The imbalance is further exacerbated by the erosion of basic rights for laborers, with exploitative practices rampant within companies. Many corporations have thrived on underpaying their employees and neglecting labor rights, leading to a widening wealth gap. Kituy emphasized the need for governments to enforce labor rights and prevent tax evasion to mitigate inequality. The report also sheds light on the issue of tax evasion among the wealthy elite in Kenya, with the country losing an estimated $1.1 billion through tax exemptions and incentives. The government's argument that such measures are necessary for competitiveness is debunked by Oxfam, as it enables the rich to evade taxes and exacerbates inequality. The revelations have placed significant pressure on Kenya's political leadership, particularly President Kenyatta, who is among the country's wealthiest individuals. Critics argue that the president must ensure that the rich pay their fair share of taxes and prioritize policies that address inequality rather than cater to the elites. Oxfam advocates for progressive tax reforms to redistribute wealth and finance essential public services like healthcare and education. The report underscores the urgent need for government intervention to narrow the wealth gap and curb the concentration of wealth among a select few. As the country grapples with the detrimental consequences of widening inequality, decisive action is imperative to foster a more equitable society for all Kenyans.