This archive report was first published on 3 September 2019.
Kenya's Middle Class: A Myth or Reality? ¶
Published on September 3, 2019, a study by Twaweza East Africa has shed light on the financial struggles of the Kenyan middle class. According to Senior Program Officer Victor Rateng, the so-called middle class does not exist in Kenya, with 70% of the population living on the edge of poverty.
One in three Kenyans cannot sustain themselves for at least three months if they lose their jobs, making them vulnerable to financial instability. The study found that 85% of Kenyan homes survive on a monthly income of $400 (Sh40,000), leaving many households living beyond their means.
As the cost of living and expenses continue to grow at a faster pace than their incomes, the working population is struggling to make ends meet. Rateng attributed this to the high number of dependents in families, increased social pressures, and the need to pay for health services out of pocket.
Despite Kenya's reputation as a budding middle-class nation, the OECD report reveals that almost a third of the average middle-income household's budget goes towards housing and rent, while food and clothing account for slightly less than a quarter. The report also stated that house prices have grown twice as fast as inflation and one-and-a-half times faster than the middle-income household's average income.
Rateng emphasized that the Kenyan system has been betrayed by corruption, which has contributed significantly to the spiking cost of living. He noted that the working class tries to invest in cars, side hustles, and investment groups, but are still trying to live the same lifestyle as the super rich, who often acquire their wealth through dubious means.
