Income differentials are a phenomenon that is manifest among individuals, regions and nations. The magnitude of the inequality has diverse effects on education which is itself a key determinant of individual as well as group income. Income inequality is reflected in the unequal access to different levels of education and to schools of different quality of education. This results in unequal consumption of education. These factors heighten the already existing inequality since the distribution of earnings is to a large extend determined by the level and distribution of schooling across population. The effect of income inequality on education dispersion and the average attainment in the population depresses economic growth and affects investment in education by individuals as well as states. Differential investment in education means unequal access to new knowledge and skills which are the driving force in this century. Already, the knowledge revolution has brought the threat of widening the gap between developed and developing countries with disparities in knowledge and information reinforcing disparities in capital and other resources.
This paper examines the controversies causes of income inequality and the resultant effect on the development of education. The study is a desk review which nevertheless extensively explores existing literature on income inequalities and education dispersion. It narrows this down to the situation in Kenya by focussing on current reactions to income inequality in general and the effect on education. The paper also provides the conclusion and the way forward through the recommendation.