I don’t know how many times in a day I encounter the phrase about “Kerala’s 100% literacy rate” – Malayalis on Facebook, Twitter and blogs constantly throw this around, especially when the topic is on how ‘uneducated’ we are or how ‘unbecoming’ our actions are.

As far as I understand,
Kerala achieved 100% literacy in 1991 – that was a long time ago. The numbers slipped over the years, the people forgot what they learned because they never used it since, new generations did not (or were unable to) show interest in learning, and many children continue to drop out of schools or fail to make their appearance at all.
But, yes, Kerala still holds the highest literacy rate in India (94.59%).