Impact of Education on Income Inequality in Kenya

This study investigates the impact of education expansion on income inequality in Kenya, a topic with limited existing research. This study attempts to examine whether education expansion may increase the pace of inequality reduction in Kenya from 1994-2024. The study adopts time series data and dynamic ordinary least squares to estimate the long-term effects. The results indicate that the enrolment rate in schools has a significant negative effect on income inequality, and public spending on education has a significant positive effect on income inequality. Thus, training in schools might reduce income inequality, and public spending on education can increase inequality because of unequal access and the varying returns on educational investment across different demographics. Addressing these issues requires comprehensive policies that go beyond just funding education to ensure equitable opportunities for all.