My cat has developed a similar problem, but she was licking all the hair off her belly and the back of her hind legs. She has been an inside cat for a long time, and never goes outside.
I took her to the vet, and he said it was either a flea allergy, a food allergy, or an inhalation allergy, or she's just neurotic. He gave her a steroid shot, and it did help her with the itching. We have never found a flea on her, so we changed her food to a special food with one carbohydrate source, and one protein source. After about 4 weeks, there was a big decrease in her itching. We now know she does have a food allergy. However, a few weeks ago, she started licking one leg badly, so I took her back. We still can't find any fleas, but we did find one speck that looks like it is flea feces. I grudgingly put her on Advantage multi because it also treats for heart worms (30% of cats that get heart worms are indoor cats). She will get that monthly, and the regular advantage in between every advantage multi treatment. This means I will also have to treat my other cat, who never goes outside, and is not itching at all. The vet said all it takes is one flea on her to cause a reaction. I hope it helps her feel better. She was looking pretty ragged for a while.
I had the pest control folks spray around the house this spring, and will have them do it again next spring. Other than that, I don't know what else I can do.
Just make sure and take your kitty to the vet for a through check up.