For the past two decades the degree of inequality in Uganda has been variable, mostly on the increase. By 2009, the country’s richest 10 percent earned 2.3 times more than the poorest 40 percent. While some progress may have been made in reducing income poverty during this same period, existing figures mask a lot of poverty dynamics and characteristics. With a very low poverty line an erroneous picture is given on the extent of deprivation. Second, the distribution of consumption in Uganda is very flat, implying that many households that are presumed to have ‘escaped’ poverty have a very high level of vulnerability.