Economic Growth In Kenya Research Articles

The Role of Education in Economic Development: A Comparative Study of Nigeria and Kenya.

Education is a transforming factor in economic growth because it gives people the information and skills that spur innovation, productivity, and general social advancement. Two of the biggest economies in Africa, Nigeria and Kenya, have made considerable changes to their educational institutions to promote economic expansion. But even with these reforms, obstacles including poor infrastructure, restricted access, and insufficient government money still stand in the way of development. This study examines how education affects economic growth in Kenya and Nigeria, paying particular attention to how the distinct political, cultural, and historical backgrounds of each nation affect educational achievements. This study highlights opportunities for improvement while identifying important educational policies and initiatives that have successfully supported economic growth through a comparative analysis. It considers the larger implications of education as an instrument for national transformation, drawing on theological viewpoints, and makes the case that real growth must be in line with moral and ethical principles. In the end, the research suggests a more integrated strategy, stressing that education may act as a catalyst for long-term, sustainable economic growth when it is in line with spiritual principles.

Influence of Health Insurance Financing on Economic Growth In Kenya

Economic growth positively impacts population health, providing access to quality healthcare, environmental protection, clean water, and better preventative behavior. However, Kenya's declining growth rate affects health financing, causing many citizens to struggle with access to care due to rising medical costs. This study sought to analyse the influence of health insurance financing on economic growth in kenya. The study was guided by the Solow-Swan Exogenous Growth Model. The study was conducted in Kenya. Data used in study was longitudinal data for twenty two years. The study period was from 2000 to 2022. A descriptive and inferential analysis performed where Auto-Regressive Distributive Lag (ARDL) model was used. Analyzed data were presented in the form of tables and discussions. The health insurance financing indicated a positive and statistically significant (b=0.2935; p = 0.0280.05), implying that one unit increase in health insurance financing could result in 0.2935 units in economic growth in Kenya. The study showed that adjusted R-squared was 0.9271, implying that the model explains approximately 92.71% of the variation in the economic growth in Kenya. The study concluded that, health insurance financing, is positively related to economic growth in the long run in Kenya. The study recommends that there is need for enhancing health insurance financing sources and gradually shifting towards sustainable domestic financing sources.

Influence of Students’ Participation in Young Farmers’ Club on Performance in Agriculture in Secondary Schools in Suba Sub-County, Kenya

Agriculture is one of the most important sectors for economic growth in Kenya. Setting up of young farmers’ club (YFC) in secondary schools is one way of attracting young people in agriculture as well as developing their production skills. Inadequate participation in young farmers’ club may lead to poor performance in agriculture and negative attitude towards the subject by secondary school students.The aim of this study was to determine the influence of students’ participation in young farmers’ club on performance in agriculture subject in secondary schools in Suba Sub-County. A cross-sectional survey research design was employed in the study which targeted 628 Form Three agriculture students in public secondary schools in Suba Sub-County. Data was collected from an accessible population of 286 Form Three Young Farmers’ Club members in 37 public secondary schools in Suba Sub-County. Stratified random sampling was used to get the study sample of 126 respondents. Data was collected using semi-structured questionnaires. Experts from the field of Agricultural Education and Extension of Egerton University assessed the instrument to ensure validity. Reliability was estimated through a pilot testing of 30 agriculture students in five secondary schools in neighbouring Nyatike Sub-County. The reliability was estimated using Cronbach alpha co-efficient where a co-efficient of 0.817 was computed and taken as satisfactory. Data was arranged,coded and analyzed using SPSS version 25. The study findings revealed that students’ performance in agriculture subject is significantly enhanced by participation in Young Farmers’ Club. This study recommends that students’ participation in Young Farmers’ Club activities should be encouraged in all secondary schools as a way of augmenting the students’ performance in agriculture subject. This can be done by availing adequate time for YFC’s activities. In addition, students in YFCs should be accorded with the required facilities in order to make their participation worthwhile.

Trade Openness, Export Quality and Economic Growth Nexus in Kenya

Economic growth is a major concern for developing and underdeveloped countries. High economic growth creates opportunities for poverty eradication, employment creation, investment, and wealth creation. While measures to enhance cross-border trade are regarded as effective in enabling economic growth, studies have yielded mixed results on their impacts. Kenya's trade openness level has declined, besides the country implementing various policies to strengthen cross-border trade. Trade openness declined from 57 percent to 27 percent between 1990 and 2020, underscoring the need to understand its effects on Kenya's economy. The general objective of this research was to analyze the impact of trade openness on Kenya's economic growth, and the specific objectives were to determine the impact of trade openness on the economic growth of Kenya and to establish the effects of the quality of exported products on economic growth in Kenya. Ordinary least squares estimation technique was used to determine the relationship among variables. The study established that trade openness does not lead to increased economic growth in Kenya. The research further found that an increase in the quality of exports increases economic growth in Kenya. The study concluded that Kenya should enhance the quality of its exports and diversify them to improve economic growth. Further, the paper observed that Kenya should lower the cost of doing business in the country to make her industries and products competitive, which can help ensure trade openness positively impacts the country's economy. It was observed that attempts to restrict trade openness are likely to lead Kenya to experience similar measures from its trading partners.

Fiscal decentralization and economic growth in Kenya: A vector error correction model (VECM) approach

Fiscal decentralization and economic growth in Kenya: A vector error correction model (VECM) approach

Mediating Role of Foreign Direct Investment in the Relationship between Selected Socio-political Factors and Economic Growth in Kenya, Uganda and Tanzania

Mediating Role of Foreign Direct Investment in the Relationship between Selected Socio-political Factors and Economic Growth in Kenya, Uganda and Tanzania

Effect of Renewable Energy Consumption on Economic Growth in Kenya

One of the significant economic growth problems in Kenya is the income inequality and poverty rate which has made it impossible for among the households to afford clean energy. While the country has experienced some economic growth over the years, it is not yet clear whether the adoption of renewable energy has been the cause of this growth. There have been mixed results on the studies done on renewable energy use and their effect on economic growth and therefore calls for further research. The general objective of the study was to determine the effect of renewable energy consumption on economic growth in the Kenyan economy. Specifically, the study specific objectives were to determine the effect of solar energy consumption, geothermal energy consumption, and hydroelectric energy consumption and wind power energy consumption on economic growth in Kenya. This was made possible through an analysis of 37 years’ data from 1986 to 2022 on an annual time series basis. This study employed the endogenous growth theory as the main theory of the study and triple bottom line theory as the supplementary theory. The study employed an explanatory research design and analyzed data using the Autoregressive Distributed Lag model to establish whether renewable energy consumption had any effect on economic growth of the Kenyan economy. Findings of diagnostic test demonstrated that there was no multicollinearity among the independent variables, residuals were homoscedastic, and there was no autocorrelation among the residuals. The results of the Jarque bera normality test showed that the study's variables were normally distributed. The Augmented dickey fuller unit root test both showed that there was no unit root and that the variables had a short run relationship. Additionally, the model's stability over time was confirmed by the CUSUM test. Findings of the study were: the relationship between hydroelectric energy consumption and economic growth was positive and significant, wind power energy consumption and economic growth was positive and significant and between geo-thermal energy consumption and economic growth was positive and significant. The study concluded that geo-thermal energy consumption, hydroelectric energy consumption and wind power energy consumption significantly affect economic growth positively. The study therefore recommends that the Kenyan government should set ambitious targets for renewable energy consumption such as a specific percentage of electricity generation or overall energy consumption. The Kenyan government should enhance and enforce regulatory frameworks specific to renewable energy in order to provide a stable and predictable investment environment. Finally, the Kenyan government should focus on expanding access to renewable energy solutions in rural areas, where energy access is limited. Implementing off-grid renewable energy systems, such as solar home systems and mini-grids, can provide clean and reliable electricity to rural communities.

The Effect of Trade Liberalization on Economic Growth in Kenya

Trade liberalization and its impact on economic growth has been a subject of debate for many years both at international and local level. The debate has been lengthened by the fact that there are no theoretical underpinnings that directly link trade liberalization to economic growth or are there any absolute terms and conditions by which trade liberalization leads to economic growth. Trade liberalization is the removal or reduction of barriers to trade that ensures free movement of goods and services from one nation to another. Kenya liberalized their trade with the hope of having dynamic gains from trade, and that the liberalization will lead to economic growth and, consequently, improve welfare. However, its key development challenges still include poverty, inequality, youth unemployment, continued weak private sector investment, and the vulnerability of the economy to internal and external shocks. This study aimed to examine the effect of trade liberalization on economic growth in Kenya and finding empirical answers to this phenomenon is what motivated this study. The objective of the study was to examine the effect of manufacturing output and foreign direct investment on Kenya’s GDP. Foreign direct investment and manufacturing output were tested to determine their effect on the Kenyan economic growth. This study adopted descriptive research design. Time series data spanning 1990 to 2022 was used for the study. The data was meticulously sourced from the World Bank. A time series diagnostic test was carried out on the data. This study adopted descriptive designs. Vector Autoregressive (VAR) model was applied. Results showed that foreign direct investment inflows and manufacturing output had a significant effect on economic growth in Kenya. In conclusion, these findings imply that although foreign direct investment (FDI) may have negative effect on Kenya's economic growth while manufacturing output support economic growth. In order to sustain long-term economic growth, Kenyan policymakers may want to consider ways to draw in beneficial FDI while simultaneously emphasizing the manufacturing sector which will be beneficial for the economy.

Analyzing the Relationship between Government Revenue and Economic Growth in Kenya from 2012-2022 using Multiple Linear Regression

The relationship between government revenue and economic growth is a debate that has existed for a long time in the living history.Government revenue impacts economic growth differently within different regions. Some researchers argue that government revenue positively affects economic growth while others argue that the relationship is negative. However, minimal literature exists exploring the relationship between the two variables at country specific level. The objective of this study was to determine the relationship between Government revenue and economic growth in Kenya. The research adopted the correlational study design. The study used secondary data collected from the Central Bank of Kenya, KNBS, and Government records such as the finance Act. We collected data on different sources of Government Revenue such income tax, Value Added Tax (VAT), excise duty, import duty, Other tax income. The study also included data on non-tax revenue. The set of data under the study was from the financial years 2011/2012 to 2022/2023. The analysis has been done by the use of R software. To identify the level of association of the study variables such as GDP,Income tax,VAT,excise tax,import duty,other tax and non-tax revenue, he study employs multiple linear regression analysis. To check on the level of significance, we tested at 5% significant levels. The p-value is 0.008462 which was less than 0.05 hence we reject the null hypothesis and conclude that there is significant positive relationship between Government Revenue and Economic growth in Kenya.

Foreign Dependency and Economic Growth Nexus in Kenya

Foreign dependency is an economic phenomenon, which is characterized by asymmetrical benefits, favouring specific countries at the expense of others, and impeding the growth potential of dependent economies. The main objective of the study was to determine the relationship between foreign dependency and economic growth in Kenya. To achieve this overarching aim, specific objectives have been delineated to include an evaluation of the effect of import volumes and external debt levels on economic growth in Kenya. The theoretical underpinnings of this study draw from several key economic theories and models, each offering unique insights into the dynamics of foreign dependency. This study employed a descriptive and inferential statistical design and leverages a time series dataset spanning the years 1980 to 2021, meticulously sourced from the World Bank. To facilitate a comprehensive analysis, the Autoregressive Distributed Lag (ARDL) model was applied. The empirical analysis revealed noteworthy relationships between determinants of economic growth in the Kenyan context. Specifically, imports of goods and services and external debt are all identified as having statistically significant impacts on the trajectory of economic growth in Kenya. In conclusion, these findings suggest that factors like imports and external debt contributes positively to economic growth. The study recommends that policymakers should explore strategies to attract productive external debt which will stimulate positive investment spillover effects within the economy. Emphasis should be placed on the need to bolster the import-led growth through regulatory mechanisms that safeguard local producers. Responsible external debt management is underscored as pivotal to fostering sustained and robust economic growth. Additionally, trade policies designed to facilitate import-led growth are posited as potentially beneficial for the Kenyan economy.

Role of Development Banking in Economic Growth in Kenya

Purpose: This study delineates the impact of development banking on Kenya's economic growth. The current study adopted a quantitative and exploratory research design.
 Materials and Methods: The study used a quantitative research design. Secondary data was utilized in this study. The data was collected from the financial statements of development banks in Kenya. The target population was 6 development banks in Kenya. The study then progressed to more complex regression analysis, where financial performance ratios and percentages for predictor factors formed the basis of the analysis. The study focused on 6 development financial institutions operating in Kenya.
 Findings: The findings (β=0.1153, p=0.0056), reveal that development banking had a positive and significant effect on economic growth. This infers that an improvement in development banking by one unit would lead to an improvement in economic growth by 0.115 units. The investigation substantiates a tangible and statistically significant correlation between the maturation of the development banking sector and the economic growth spectrum in Kenya.
 Implications to Theory, Practice and Policy: Policymakers in Kenya should work to maintain a stable regulatory system that enhances the role of the banking system in stimulating economic growth. The study emphasizes the need for a stable regulatory environment and well-considered interest rate policies to mitigate adverse economic impacts. Additionally, the study advocates for a pro-poor banking approach to reduce wealth disparities and boost economic growth through improved savings and customer deposits in banks. the banks.

Electricity Consumption and Economic Growth in Kenya: an ARDL Bound Test Approach

Electricity Consumption and Economic Growth in Kenya: an ARDL Bound Test Approach

Level of Education and Savings Mobilization among Women Groups in Kisii County, Kenya

Investments by firms ultimately benefit the nation through higher productivity and economic growth. The role of savings in investment and, therefore, in the development of a country cannot be exaggerated. In developing countries like Kenya, most of the savings are done by households. High savings can also hedge countries against economic downturns and financial crises. One of the avenues to boost national savings is by encouraging individuals to increase personal savings. In this study, the behavior of women savings in Voluntary Saving Groups, which are self-help women groups in Kisii county, was examined. The purpose of this study was to find out whether the level of education can influence savings mobilization among self-help women groups in Kisii County for economic growth in Kenya. The study was guided by psychological and sociological theories, which propose that an individual's changes in resources over time and the influence of education, among other factors, have an influence on savings. The study will be beneficial to groups on savings as well as policymakers who come up with regulations concerning savings through groups. The study used the descriptive survey design and the target population was 1,482 group members of the various self-help women groups in Kisii County, from which a sample of 165 was obtained. The study revealed that the level of education is a serious contributor to saving decisions among women in self-help groups, thereby influencing savings mobilization among themselves.

Effect of Renewable Energy Consumption on Economic Growth in Kenya

Despite Kenya having a massive generating capacity of renewable energy, its consumption levels remain significantly low. The low supply levels have driven the costs of production upwards leading to high energy prices thereby slowing economic activity occasioned by inadequate investments in the energy sector. However, there are conflicting results on the existing link between economic growth and renewable energy consumption in the developing world. This study purposed to establish the effect of renewable energy consumption on economic growth in Kenya. This study was anchored on the Neo-Classical Solow-Swan growth model. This study adopted the correlational research design and used time series data for the period 1980-2017 to determine the nature of the existing linkages. Capital and labour were incorporated as control variables. The granger causality results established the existence of a bidirectional and feedback relationship existing between renewable energy consumption and economic growth in Kenya. Vector Error Correction Model results showed that a unit increase in total renewable energy consumption led to a gross domestic product rise by 13,340 million dollars in the second year. Therefore, both the granger causality and Vector Error Correction Model (VECM) tests advocate for investment in the consumption of renewable energy if desired levels of economic growth are to be attained. Therefore, investment in modern energy generation and supply technologies and demonopolisation of the generation and supply of renewable energies to encourage private investments are recommended as the necessary measures to increase the level of renewable energy consumption, which in turn accelerates the rate of economic growth. Interventions such as tax exemptions on renewable energy equipment may encourage more uptake and consumption of renewable energies. This study may assist the government in the formulation of sustainable energy policies. This study may assist the government in the formulation of sound and sustainable energy policies for industrial and economic growth.

Financial Technology and Its Role in Promoting Financial Inclusion and Economic Growth in Kenya

Financial Technology and Its Role in Promoting Financial Inclusion and Economic Growth in Kenya

Foreign direct investment, foreign aid and economic growth nexus in Kenya

The increasing role of foreign capital inflows in reducing the disparity between government revenues and costs as well as impellent economic growth has motivated this study to establish the direction of causality between foreign direct investment (FDI), foreign aid, and economic growth in Kenya. By using annual time series data from 1970 to 2020 within bounds testing approach to cointegration and the error correction model ECM-based Granger-causality, the study found a bidirectional causality between foreign aid and economic growth in the short run and a unidirectional causal flow from foreign aid to economic growth in the long run. The results also support evidences of bidirectional causality between FDI and foreign aid in the short run and a unidirectional causal flow from foreign aid to FDI in the long run. However, the study found no causal relationship between FDI and economic growth, irrespective of whether the causality test is conducted in the short run or in the long run. These empirical findings are encouragement to policy makers in Kenya to carefully channel foreign aid in productive sectors to positively influence economic growth and foreign direct investment, as most relevant targets in achieving Vision 2030 and the Sustainable Development Goals (SDGs).

Currency Fluctuations and Foreign Direct Investment in Kenya

Purpose: This study investigates the relationship between currency fluctuations and Foreign Direct Investment (FDI) in Kenya over the period from 2013 to 2022.
 Methodology: Employing a causal explanatory research design and time-series secondary data, the study identifies the trends and determinants of currency fluctuation and its relationship with FDI. Secondary data is collected from the CEIC website while PICOT is utilized to select the relevant studies for analysis. The correlation analysis is conducted using SPSS to determine the relationship between currency fluctuation and FDI.
 Findings: The analysis reveals mixed uptrend and downtrend in both variables, showcasing a substantial reduction in FDI in recent years. The correlation analysis establishes a statistically significant negative relationship between exchange rates and FDI, in alignment with the theory of hysteresis and option values. This underscores the impact of currency fluctuations on inducing uncertainty, resulting in reduced FDI due to high sunk costs and delayed investment decisions.
 Unique Contribution to Theory, Practice and Policy: The study fills a crucial gap in the existing literature by offering insights on the relationship between currency fluctuation and FDI in the Kenyan context. Policy implications stress on the importance of stabilizing the Kenyan Shilling, mitigating real shocks, and fostering economic diversification to enhance the attractiveness of Kenya to foreign investments. This study provides valuable guidance for policymakers, the Kenyan government, and stakeholders seeking to formulate strategies that promote a conducive environment for sustained FDI and economic growth in Kenya.

Income Inequality And Economic Growth in Kenya

Kenya aimed to achieve an economic growth of 10% annually by the year 2012. However, the 10% economic growth rate has not been achieved as at the end of the year 2022. This is an indication that the economic growth rate has been lagging the target for the vision 2030. The gap between the richest and poorest has reached extreme levels in Kenya. Less than 0.1% of the population owns more wealth than the bottom 99.9%. The findings of this research indicate high levels of income disparity are affecting the economyʹs growth process as well as contributing to the rise in poverty. The increase in economic growth has the tendency to lessen income inequality after a certain point. The process of changing a countryʹs economy from an agrarian society to an industrial society was responsible for the significant income inequality during the early stages of economic expansion. Kuznets also highlighted the fundamental adjustments made in economic growth. A negative relationship was observed which meant that a rise in income inequality would have a deteriorating effect on economic growth. This study therefore recommends that Kenya should devise appropriate measures such as deregulating the economy, setting up strong and accountable institutions to ensure the principle of equity is observed in the allocation and distribution of resources. This can be made possible through development of inclusive political and economic institutions that would promote the principle of equity as enshrined in the constitution of Kenya

Use of mobile technology to identify behavioral mechanisms linked to mental health outcomes in Kenya: protocol for development and validation of a predictive model

ObjectiveThis study proposes to identify and validate weighted sensor stream signatures that predict near-term risk of a major depressive episode and future mood among healthcare workers in Kenya.ApproachThe study will deploy a mobile application (app) platform and use novel data science analytic approaches (Artificial Intelligence and Machine Learning) to identifying predictors of mental health disorders among 500 randomly sampled healthcare workers from five healthcare facilities in Nairobi, Kenya.ExpectationThis study will lay the basis for creating agile and scalable systems for rapid diagnostics that could inform precise interventions for mitigating depression and ensure a healthy, resilient healthcare workforce to develop sustainable economic growth in Kenya, East Africa, and ultimately neighboring countries in sub-Saharan Africa. This protocol paper provides an opportunity to share the planned study implementation methods and approaches.ConclusionA mobile technology platform that is scalable and can be used to understand and improve mental health outcomes is of critical importance.

DOES RENEWABLE ENERGY SPUR ECONOMIC GROWTH IN KENYA? AN EMPIRICAL INVESTIGATION

In this paper, the dynamic impact of renewable energy consumption on economic growth in Kenya has been empirically examined during the period from 1990 to 2019, using the autoregressive distributed lag-bounds testing approach. The study was motivated by the call to increase renewable energy use in Kenya. Contrary to expectations, the results of the study show that renewable energy consumption has no significant impact on economic growth in Kenya, regardless of whether the analysis is in the long or short run. The study, thus, concludes that the development of the real sector in Kenya is not dependent on the exploration of renewable energy. This implies that Kenya can still pursue the necessary energy conservations policies without compromising its long-term growth trajectory.