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Kenya has the lowest economic inequality among its East Africa Community (EAC) despite a surge in energy and food prices, a new survey report by the African Development Bank (AfDB) shows.
Kenya’s Gini coefficient — which gauges inequality- stood at 38,9 which is the lowest in the bloc, trailing other nations including South Sudan (44,1), Rwanda (43,7), Uganda (42,7), Tanzania (40,5) and Burundi (40,1).
“Rising food and energy prices have worsened poverty and inequality in the region. East African economies have relatively high Gini coefficients that mirror the high-income inequality and poverty in the continent,” AfDB said in the latest economic outlook for East Africa.
“Most of the East African countries are ranked between 28th and 52nd out of some 189 countries, indicating that the income is relatively concentrated in the hands of a few while the majority are struggling to meet their basic needs, such as food, energy, health care, housing, and education” AfDB added.
The World Bank cites Slovenia with a Gini of 24,6 as one of the lowest in the world, whereas South Africa, with its Gini of 63, is considered the highest.
Closer home Comoros, with a Gini coefficient of 45,3 was ranked as the most unequal country in the wider Eastern Africa region in 2023, while Seychelles, with a Gini coefficient of 32,1 was rated as the least unequal country in the region.
Kenya’s economic inequality however, beats several other nations in the Eastern Africa area including Somalia (36,8), Ethiopia (35), and Sudan (34,2).
“Rising energy and food prices and prolonged drought in the region, compounded by the adverse aftershocks induced by the Covid-19 pandemic, are major headwinds to reducing extreme poverty in the region,” AfDB said. – The East African.
Online Reporter