She's been keeping him at arm's length lately.

Literal

She [topic-は] lately him [object-を] is-distancing.

近ごろ ('lately, recently') is the older variant of 近頃 — same meaning, slight register difference. 遠ざける ('to keep at a distance') is the transitive counterpart of the intransitive 遠ざかる ('to grow distant'). The whole verb pair 遠ざかる/遠ざける captures the gradual physical or emotional drifting apart that English would phrase as 'drifting away from' or 'pulling back from.' Combined with ~ている for ongoing state, the sentence describes an ongoing pattern of avoidance, not a single act.