Growth In Kenya Research Articles

Aviation business growth; Does ground movement capacity and air space capacity matter?

Growth in any firm’s business is critical as a long-term objective of such a firm. The study thus focused on the influence of ground movement capacity and air space capacity on the growth of aviation businesses at Wilson Airport. The guiding objectives of this study were: to establish the effect of ground movement capacity on aviation business growth in Kenya and to assess the effects of airspace capacity on in Kenya. The study was guided by theory of constraints. The study employed an explanatory research design. The study targeted 117 respondents based at Wilson Airport. A Census survey was used in this study to collect information from all participants in the population. The study collected primary data using questionnaires. In testing for reliability, Cronbach’s alpha coefficient was applied. The Statistical Package for the Social Sciences (SPSS) was used for data analysis. Inferential data were analyzed using correlation and multiple regressions. The study findings revealed that ground movement capacity has a positive and significant effect on aviation business and airspace capacity has a positive and significant effect on aviation business growth. Ground movement capacity was an important determinant of aviation business growth. Kenya Civil Aviation Authority and Kenya Airports Authority should pool resources and increase the ground movement equipment and facilities. The study recommends that future researcher’s study on the influence of public, private partnership to increase the ground movement capacity on aviation growth can also be conducted.

The Effects of Climate Change on Kenya’s Economic Growth

Changes in the climate and natural disasters have hampered Kenya's growth in economy, as seen by periodic droughts, floods, and shifts in rainfall and temperature patterns. The research investigated the effects of climatic change on Kenya's GDP growth. Modeling was done using Autoregressive Distributed Lag (ARDL) model estimation technique while analyzing data from 1990 to 2023. Climate change was represented by annual rainfall fluctuations, carbon emissions, and forest depletion, with inflation, exchange rates, and government spending serving as the controlling factors. The regression results indicated that at 5% level of significance short run carbon emissions affect growth negatively but the long run results indicated a positive effect. Forest depletion positively impacts growth in the long run period. Government expenditure, changes in the exchange rate and economic growth had an inverse relationship. Inflation did not have potential long term impact on GDP. This study recommended that the government to balance economic growth with environmental sustainability by promoting cleaner technologies and renewable energy projects. Investments advanced irrigation and drought resistant crops are crucial. Sustainable forest management should involve controlled logging and reforestation to ensure long term health. Reducing exchange rate volatility through foreign reserves and diversified exports will stabilize the economy. Enhancing government expenditure efficiency by focusing on high return investments and minimizing waste will boost GDP stability.

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.

Influence of Runway Capacity and Air Traffic Capacity on the Growth of Aviation Business. Evidence From Wilson Airport, Kenya

The study focused on the effects of runway capacity and air traffic control on the growth of aviation businesses. The guiding objectives of this study were: to determine the effect of runway capacity on the aviation business growth in Kenya and to evaluate the effect of air traffic control capacity on aviation business growth in Kenya. The study was guided by resource-based theory. The study employed an explanatory research design. The study targeted 117 respondents comprising 92 operational managers at Wilson Airport, 25 air traffic controls, and Kenya Airport Authority employees based at Wilson Airport. A Census survey was used in this study to collect information from all participants in the population. The study collected primary data using questionnaires. In testing for reliability, Cronbach’s alpha coefficient was applied. Statistical Package for the Social Sciences (SPSS) version was used for data analysis. The study findings revealed that runway capacity positively and significantly affects aviation business growth. Air traffic control capacity has a positive and significant effect on aviation business growth). It can be concluded that runway capacity at Wilson Airport is insufficient. Night-hour flying can enhance runway capacity, and by large, aviation growth as AOC holders can fly more due to increased operating hours. The aerodrome owner and operator should ensure that it boosts the existing runway capacity either by optimizing the operations or expanding to cater to business growth. KAA and KCAA, the regulators, should consider boosting the runway capacity through increasing navigation aids to enable the introduction of night flying. The study recommends that future researcher’s study on the influence of public, and private partnerships to increase the ground movement capacity on aviation growth can also be conducted

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.

Financial Development and Its Effect on Inclusive Growth in Kenya 2000 – 2022

Purpose: In the past decade, Kenya’s economy registered an average real GDP growth rate of 4.63 percent. Despite this growth, many people have been locked out of social and economic opportunities, with 19.1 percent of the Kenyan population living in poverty. This has intensified the need for inclusive growth, a growth model that promotes shared prosperity. Several studies have shown that financial systems that function well play a great role in the economy through the provision of key financial services that drive growth. However, there is a lack of substantial inquiry into financial development and inclusive growth in Kenya. This study sought to examine this relationship for the period 2000-2022. Methodology: The study employed a causal research design and used time series data that was collected from various databases. The level of inclusiveness in Kenya was analyzed using an inclusiveness matrix. An inclusive growth index was constructed, which was then used to empirically test the effect of financial development on inclusive growth. The data was presented in tables and figures. Findings: The inclusiveness matrix shows that despite positive economic growth rates, there is a low rate of equity growth, which shows that Kenya has a low level of inclusivity. The empirical results show that bank deposits and private-sector credit have a positive and statistically significant effect on inclusive growth. A 1% increase in bank deposits leads to a 0.074% increase in inclusive growth. When private-sector credit increases by 1%, inclusive growth expands by 0.070%. Bank return on assets has a positive but insignificant effect on inclusive growth. The study confirms that financial depth and access to financial services are the most conducive to inclusive growth in Kenya. Other determinants of inclusive growth include initial income, human capital development and macroeconomic stability. The overall findings suggest that financial development can be used to create economic opportunities for poor people in Kenya, thus reducing income disparities. Unique Contribution to Theory, Practice and Policy: The study has contributed to the ongoing conversation on inclusive growth, specifically on its measurement. The empirical results on the finance-inclusiveness nexus provide evidence-based policy interventions that can help in reducing income disparities and enhancing shared prosperity. The findings imply that policymakers and practitioners need to focus their attention on promoting financial access and financial depth in marginalized regions to create a significant impact on inclusive growth in Kenya.

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.

Domestic Credit Growth Analysis using ARIMA Technique: A Case Study of Kenya

The aim of this paper is to technically analyze domestic credit growth in Kenya using the Box -Jenkin framework. Box -Jenkin technique uses ARIMA model, which is used to understand time series data and forecast future values of the observed data for a given period. The framework involves three iterative step to develop a model The first step involves model parameter identification. Unit root test show that domestic credit is stationary after the first difference. The ACF and PACF indicates cut off at lag zero in both cases. There are seasonal component in the ARIMA model. In the second step of model estimation, ARIMA(2,1,2)(1; 0; 0)12 is obtained as the best fit for the sample period under consideration. Model diagnostics test in the third step, proves that there ARIMA modeling assumptions are met. The estimated model is used to forecast credit growth for the next twelve monthly values in year 2024 upto December. The estimated model projects an increase trend in domestic credit growth for the year 2024, with the percentage growth rate ranging between 1.045 to 1.230 percent. The expected domestic credit value in December 2024 is yellow is highly likely to hit Kenya shilling 8.039 Trillions mark. Kenya government should put in place monetary policy that favors bank credit growth and competition in the banking sector.

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.

Assessing the Impact of Population Dynamics in Kenya: A Need for Policy Implementation

Population dynamics significantly influence various aspects of a country’s development, including economic growth, social progress, and environmental sustainability. In Kenya, population dynamics have been a critical factor shaping the country’s development agenda. This abstract aims to assess the impact of population dynamics in Kenya and the need for policy implementation. The relationship between population growth and economic development is complex and multifaceted. While an increasing population may fuel economic growth through a larger workforce, it simultaneously exerts pressure on essential resources and services. This paper examines the trends and implications of population growth in Kenya, a country characterized by a high fertility rate, and assesses its impact on economic dynamics. By analyzing the challenges posed by this demographic trend, the study elucidates the significant influence of population on Kenya's economy. Furthermore, it delves into the strategies implemented by the Kenyan government to mitigate adverse effects and proposes additional measures for sustainable development. Through this investigation, the paper aims to provide a comprehensive understanding of the interplay between population growth and economic stability in Kenya, highlighting the necessity for effective policy interventions.

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.