A new survey by Trends and Insights for Africa (TIFA) has revealed worrying statistics about household income in Kenya. The study, released on September 11, 2025, shows that nearly half of all households live on less than Ksh20,000 per month.
Low Earnings for Most Households
According to the findings, 46% of households fall into the low-income bracket, earning below Ksh20,000 monthly. Only 10% of households reported monthly earnings of Ksh50,000 and above.
This gap highlights a growing income divide in the country. Many families are struggling to cover food, rent, and education costs.
Inflation and Shrinking Purchasing Power
Although inflation has dropped from over 9% three years ago to below 4%, its effects are still being felt. TIFA noted that the cumulative rise in prices has cut purchasing power by almost 20%.
This means that even with stable inflation, the value of household incomes has reduced. As a result, many Kenyans cannot comfortably meet their daily needs.
Employment Trends in Kenya
The report also revealed employment patterns. About 25% of adults are in formal jobs, while 23% are self-employed. Another 15% work part-time.
However, unemployment remains a serious challenge. 36% of adults are jobless. Some are actively searching for jobs, while others have given up hope.
President Ruto on Unemployment
The issue of unemployment continues to spark debate. In July 2025, President William Ruto admitted that joblessness has been a problem since independence.
“Unemployment has been there since President Jomo Kenyatta. My government is doing the best it can,” Ruto said during a police housing project launch in Nairobi.
The Way Forward
The TIFA report shows that while inflation is stable, incomes remain low and unemployment high. Experts argue that Kenya needs stronger policies to create jobs, boost incomes, and protect households from rising living costs.
Without these measures, millions of Kenyans will remain stuck in poverty despite economic reforms.
