Dissociative experiences, including perceptual distortions, daydreaming and memory lapses, are clinically relevant and possible correlates and associated features of psychosis risk rather than established prodromal indicators. This study examined dissociative experiences patterns among Kenyan youth and their associations with sociodemographic factors, risk for psychosis and mood disorders. This was a cross-sectional study among youth aged 14–30 years in the Nairobi Metropolitan Area. Participants completed the Washington Early Recognition Center Affectivity and Psychosis Screen (WERCAP) and the Washington Early Recognition Center Dissociation Screen (WERC-DS): Exploratory factor analysis, group comparisons and reliability testing were applied. Dissociative experiences were common among participants, with 25–47% endorsing the highest frequency on individual daydreaming items, and 6.5–39.5% endorsing the highest severity on individual items assessing perceptual distortions. Three factors emerged (Daydream Intensity and Engagement, Perceptual Distortion and Memory Lapses), demonstrating strong internal consistency (α = 0.89). Youth at high risk for psychosis reported significantly higher dissociation scores than low-risk peers (p < 0.001), specifically perceptual distortions (p = 0.001) and immersive daydreaming (p < 0.001). Dissociative experiences varied significantly by age and socioeconomic status. Dissociative experiences are prevalent and developmentally patterned among Kenyan youth and are strongly associated with psychosis risk, supporting dissociation as a psychological construct associated with psychosis-risk status in low-resource settings.