RP-Department of Applied Economics

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Governmental constraints: A framework for analysis
(Kenyatta University, 2007) Wekesa M. J. Wesonga
Thenotion that a national government could face constraints in its operations - apart from resourcelimitations - has received littleformal theoretical treatment, especially in thefield of public administration. And yet the government, like any other earthly agency,faces multiple constraints in its operations. Constraints impact state performance and they should be acknowledged in any meaningful evaluation of state actions. Some work on governmental constraints has been done by scholarsfrom different disciplines (and sub-disciplines) , such as comparative politics and international relations. These studies, however, do not embrace the broad perspective we believe befits' the multifaceted nature of constraints on state operations. This paper articulates an interdisciplinary conceptual framework within which constraintson state operations can be characterized, categorized and analyzed. Wepresume a democratic polity, and advance the basic idea that government, as a social organism, can constrain as well as be constrained by others. Defining a governmental constraint as anything that is prescriptive, proscriptive or physically restraining, on state operations, we suggestthree criteria for categorizing such constraints. Such a constraint can beformal or informal. It can be domestic or international, and finally it can be internal or external (to the government). In a liberal democracy the national constitution restrains the state from some actions (e.g. baseless detention of citizens), and also requires the state to carry out other actions such as maintaining law and order. In such a polity public opinion usually sways state actions. Moreover, with the rising international integration of markets, the national government isfacing declining control over the national economy. Add on to these the conditionalities that accompany bilateral and multilateral aid and the situation starts toget crowded. All these are instances of the myriad constraints that the state faces in its operations.
Factors affecting the management of women groups’ micro and small enterprises in Kakamega District, Kenya
(Emerald, 2009-07) Wawire, N. H. W.
Purpose – The purpose of this study is to highlight the main factors that affect the management of the WGs’ Micro and Small Enterprises (MSEs) in Kakamega District and Africa in general. Design/methodology/approach – The study adopted a descriptive research design. This is because the study was concerned about a univariate question in which the researchers asked about the size, form distribution and existence of factors affecting management of the Women Groups’ (WGs) MSEs. The study created a profile on variables affecting WGs’ MSEs through collection of data and the tabulation of the frequencies on the research variables and their interaction. Systematic random sampling was used to select the sample. This technique resulted in a sample size of 310 respondents distributed as follows: 95 WGs leaders; 143 group and community members; and 72 donor, government and non-governmental agents. Findings – The study found that the factors that affect management of WGs’ MSEs could be categorised as financial, administrative, managerial, technical, political, traditional and cultural. The WGs lack skills in these areas, which adversely affects the MSEs. The study then calls for full support of WGs’ MSEs by all those involved in one way or another, remembering that “for women, a common theme cuts across the struggles . . . whether at independence, liberation movement, the New International Economic Order, or development, women have learned that the change, reforms and revolutions were not intended for them”. Research limitations/implications – The study is limited to the data obtained through questionnaires and interviews which were descriptive and qualitative in nature. A study that uses both quantitative and qualitative data is recommended. Originality/value – The study is ground-breaking in terms of looking at the management of WGs’ MSEs in Kenya.
Growth, productivity and diversification in Africa
(2010) Njuguna, Angelica E.; Karingi, Stephen N.; Hakim, Ben Hammouda; Mustapha, Sadni Jallab
The purpose of this article is to investigate the relationship among economic growth, productivity and diversification. Our results have shown that deepening diversification leads to improvements in total factor productivity among other determinants in African economies. The significance of the link between diversification and economic growth in the case of African economies cannot be gainsaid. It means that African countries can scale up their economies’ growth by raising their total factor productivity through pursuing policies that enhance diversification.
Factors Affecting the Management of Women Groups' Micro and Small Enterprises in Kakamega District, Kenya.
(Emerald Group Publishing Limited, 2010) Wawire, N. H. W.; Nafukho, N. M.
Purpose – The purpose of this study is to highlight the main factors that affect the management of the WGs' Micro and Small Enterprises (MSEs) in Kakamega District and Africa in general. Design/methodology/approach – The study adopted a descriptive research design. This is because the study was concerned about a univariate question in which the researchers asked about the size, form distribution and existence of factors affecting management of the Women Groups' (WGs) MSEs. The study created a profile on variables affecting WGs' MSEs through collection of data and the tabulation of the frequencies on the research variables and their interaction. Systematic random sampling was used to select the sample. This technique resulted in a sample size of 310 respondents distributed as follows: 95 WGs leaders; 143 group and community members; and 72 donor, government and non-governmental agents. Findings – The study found that the factors that affect management of WGs' MSEs could be categorised as financial, administrative, managerial, technical, political, traditional and cultural. The WGs lack skills in these areas, which adversely affects the MSEs. The study then calls for full support of WGs' MSEs by all those involved in one way or another, remembering that “for women, a common theme cuts across the struggles … whether at independence, liberation movement, the New International Economic Order, or development, women have learned that the change, reforms and revolutions were not intended for them”. Research limitations/implications – The study is limited to the data obtained through questionnaires and interviews which were descriptive and qualitative in nature. A study that uses both quantitative and qualitative data is recommended. Originality/value – The study is ground-breaking in terms of looking at the management of WGs' MSEs in Kenya.
Efficiency of Financial Market Intermediation in Kenya: A comparative Analysis
(Elsevier, 2011) Oduor, Jacob; Karingi, Stephen; Mwaura, Stephen
Wide interest margins as witnessed in Kenya are a sign of a repressed and inefficient financial sector. This paper carries out a cross-country analysis of the determinants of financial market efficiency using panel cointegration with a view to recommending policy options for improving the efficiency of the financial sector intermediation process in Kenya. The study finds that the major contributors to the differences in financial sector inefficiency in Kenya compared to the other countries in the study are high bank operating costs, default risk and financial market structure. The study recommends, among other measures, that the government through the Central Bank need to collaborate with the commercial banks and establish a working credit reference bureau to enable easy identification of credit worthy customers in order to reduce default risk; there is also need by the central bank to license more new banks to increase competition and reduce bank concentration. The study also recommends increased use of technology including phone-banking and e-banking to reduce operation costs of the banks. The paper concludes that contrary to the findings from other cross-country analysis, the factors that lead to financial market in/efficiency varies from one country to the other.
Do Clinical Guidelines Reduce Clinician Dependent Costs?
(Health Research Policy and Systems, 2011) Kosimbei, G. K.; Hanson, K.; English, M.
Clinician dependent costs are the costs of care that are under the discretion of the healthcare provider. These costs include the costs of drugs, tests and investigations, and discretionary outpatient visits and impatient stays. The purpose of this review was to summarize recent evidence, relevant to both developed and developing countries on whether evidence based clinical guidelines can change hospitals variable costs which are clinician dependent, and the degree of financial savings achieved at hospital level. Potential studies for inclusion were identified using structured searches of Econlit, J-Stor, and Pubmed databases. Two reviewers independently evaluated retrieved studies for inclusion. The methodological quality of the selected articles was assessed using the Oxford Centre for Evidence- Based Medicine (CEBM) levels of evidence. The results suggest that 10 of the 11 interventions were successful reducing financial costs. Most of the interventions, either in modeling studies or real interventions generate significant financial saving, although the former reported higher savings because the studies assumed 100 percent compliance.
Emiprical Analysis of Determinants of Demand for Family Planning Services in Kenya’s City Slums
(Canadian Center of Science and Education, 2011) Okech, T. C.; Wawire, W. N.; Mburu, T. K.
The purpose of the study was to empirically examine the determinants of demand for family planning services in Kenya’s slums using a binomial logit model. The study revealed low usage of family planning services due to various factors. In order of significance, these include partner’s approval, quality of the services, friendliness of the staff administering the services and the woman’s knowledge about family planning services. Others were the woman’s income level, proximity to the provider and the religious background of the woman. In lieu of the findings, various recommendations were suggested to enhance use of family planning services in the slums as a bold step towards enhance uptake of family planning services. Other than reviving and enhancing the activities of community based distributors, promotion of family planning education and activities at the household level should be carried out. Similarly, formation of lobby groups to enhance cultural change, as well as awareness creation and counselling, and integration of family planning services with HIV/AIDS were also been recommended.
Exploration of food security situation in the Nile basin region
(Journal of Development and Agricultural Economics, 2011-07) Omiti, J.; Ommeh-Natu, H.; Ndirangu, L.; Laibuni, N.; Waiyaki, N.
The top economic development challenges in the Nile Basin region are food insecurity, poor infrastructure, chronic poverty and political instability. While these issues are interrelated, food security assumes a greater dimension at both national and regional levels. Hence, an eclectic approach is used to underscore food security indicators in River Nile basin. Food security is a multidimensional conceptualization of food availability, accessibility and utilization to sustain a healthy and productive life at an individual, household, national and regional levels, at all times. Using statistics from the World Bank, IFPRI, FAOSTAT, FAO/AGL-TERRASTAT and other studies in the basin, the study reviews food security situation and compares the main causes of food insecurity amongst nine Nile Basin countries. The study found that most countries in the Nile basin region are unable to produce enough food for their population, thus, there is high child mortality and a high proportion of people who cannot meet their energy (calorie) requirements. While food markets play a critical role in ensuring that food is distributed according to forces of supply and demand, they are generally weak, thin and inefficient in most Nile basin countries. As a result, there is limited intra-regional agricultural trade. The study recommends a paradigm shift in technology for the Nile basin agriculture towards people-centered and pro-poor approaches to improve food production, agro-processing and regional trade. To boost food production will require effective technologies for example, certified seed and fertilizer, that are adapted to local conditions and realities, expansion of irrigated agriculture, reduction of post-harvest losses, improved infrastructure (for example, storage), innovations that promote value addition (agribusiness) and expansion of intra-regional agricultural trade. Both the public and private sectors in the region need to encourage development of technological, infrastructural, and marketing innovations and provide the necessary economic infrastructure and policy commitments to improve food security in the Nile basin.
The Influence of News Media on Optimism about Retrospective and Prospective Economic Issues as Sources of Social Capital: Tracing the Effects by a Path Model
(International Journal of Humanities & Social Science, 2012) Yung-I, L.
This study helps understand media's conditional effects by investigating the role of mediating attitudinal factors in explaining the relationships between media, and civic attitudes and behaviors. This study attempts to understand the mechanism by which media influence how much optimism people have in perceiving economic issues, which accordingly could influence people's possession of social capital. Analyzing the 2004 ANES data by using the structural equation modeling approach, this study finds a path model that links news media to various dimensions of social capital through people's optimism about economic issues. The findings suggest that news media influence people's possession of social capital indirectly through influencing people's optimism about issues that are highly important and relevant to their lives.
Firm Efficiency Differences and Distribution in the Kenyan Manufacturing Sector
(African developmnet review, 2012) Ngui-Muchai, D.; Muniu, J. M.
This article provides empirical evidence on technical efficiency differences and efficiency distribution for three Kenyan manufacturing subsectors, namely food, metal and textile, using an unbalanced panel data covering two periods. Econometric production frontiers are estimated for each subsector in each period. The confidence predictions for these efficiencies were, however, found to be quite wide. The results indicate variation of technical efficiency estimates of the sampled firms in each period. The technical efficiency distribution for each subsector changed not only in relation to itself, but also in relation to the other subsectors across the two periods of analysis. The efficiency distribution of the firms for both food and textile (metal) subsectors improved (declined) during the study period but with the food subsector firms remaining relatively inefficient. The improvement of the technical efficiency distribution for both the textile and food subsectors is an indication of intra-plant improvement during the period of analysis. The decline of the technical efficiency distribution for the metal subsector suggests that the market orientation during the structural reform period did not promote firm efficiencies or the firms were slow in responding to the reforms.
The Relationship Between Commercial Energy Consumption and Gross Domestic Income in Kenya
(The Journal of Developing Areas, 2012) Onuonga, S.M.
The causal relationship between economic growth and energy consumption represents a widely studied topic in energy economics literature. Although it is well known that there is a strong correlation between energy consumption and economic growth, the issue of causality is still controversial. The paper investigated the causal relationship between energy consumption and economic growth in Kenya using published data. By using the Ganger-causality Error Correction Model, the results suggest that economic growth causes energy consumption in Kenya. The implication of the study is that energy conservation measures would not lead to negative effects on the country's economic growth.
Why do pupils dropout when education is ‘free’? Explaining school dropout among the urban poor in Nairobi
(2012-07) Abuya, Benta; Oketch, Moses; Musyoka, Peter
The introduction of universal primary education in sub-Sahara African countries in the 1990s increased enrolment rates and provided opportunities to children who were previously not in school. Research demonstrates that eliminating fees is not the magic bullet that delivers universal access. This study seeks to determine risk factors associated with dropout among primary school children in the low-income areas of Nairobi. Qualitative data is from the Education Research Program, collected between June and July 2008. The study found that: dumpsites in the two slum sites of Korogocho and Viwandani lure children out of school; school levies still charged in schools keep children out of school; and chronic poverty within families lure girls aged 14–16 into transactional sex. In conclusion, the declaration of free primary education is not sufficient to realize improved educational attainment as dropout after initial entry negates the purpose for which it was introduced.
Impact of Civil Service Reforms on Labour Inspectorate in Kenya
(2012-07-08) Omolo, J.O.
The civil service is the machinery that governments rely on to design, formulate and implement their policies and programmes. Civil service reforms have been a common phenomenon around the globe, especially in developing countries. Civil service reforms in Kenya started in 1993. The reforms were aimed at containing the burgeoning wage bill, improving civil service productivity and efficiency. This study sought to analyze the impact of civil service reforms on labour inspectorates in Kenya. The study used data sourced from secondary materials published by the Kenya Government and employed evaluative methodology in undertaking the analysis. The study established that civil service reforms had a considerable negative impact on the labour inspectorates in Kenya. The effect is manifested in law and declining numbers of labour inspectorate staff, and the aging nature of the staff. Based on international benchmarks, the Kenyan labour inspectorate staff were found to be overburdened by up to 204 percent. The study also established that the Kenyan labour inspectorate is poorly resourced in terms of budgetary provisions, non-integrated and non-modernized. Overall, there is low prioritization and recognition of the role that labour inspectorates play in promoting economic growth, national development and attainment of Vision 2030 goals. This study calls for modernization of the labour inspectorate services. It also calls for integration of labour inspections so as to exploit existing synergy and limit on duplication of functions and inspection fatigue. At the same time, there is need for capacitation of the labour inspectorates through re-prioritization of Ministry's activities and funding levels, increase in staffing inclusive of undertaking of training and succession planning within the inspectorate.
Consequences of Organic-Mineral N Soil Fertility Amendments on Nitrogen Uptake and Maize Grain Yield in the Smallholder Farms of Meru South District, Kenya
(Sky Journal of Soil Science and Environmental Management, 2012-11-06) Mutegi, Edwin Mwiti; Kung’u, James Biu; Muna, Mucheru; Mugendi, Daniel
The central highlands of Kenya is generally densely populated and declining land productivity with reduced crop yields has been a major problem facing the smallholder farmers in the region. Land sizes are small and this promotes continuous cropping with limited scope for crop rotation and inadequate soil fertility replenishment. Efficient use of soil N amendments in maize (Zea mays L.) production is necessary to maximize producer’s economic returns and maintain soil and water quality. An experiment was carried out on the humic nitisols in Mucwa location, Meru South District, with the objective of determining maize grain yields and N uptake under different soil N amendments. The experiment was set in randomized complete block design (RCBD) with three replicates. The results reveal that maize grain yields in the organics and/or mineral N soil amendments was higher than the yields obtained where the recommended mineral fertilizers were used alone. The nitrogen (N) concentration in different parts of the maize crop varied, with the grain having the highest, followed by the stover during the 2005 short rain season. Sole application of calliandra recorded the highest N uptake (170.8 kg N ha-1) while the control gave the lowest (49.31 kg N ha-1). It is therefore concluded that differences in nutrient release by the organic-mineral N soil amendments can alter net rate of nutrient uptake during crop growth and therefore assist in synchronization of nutrient release and uptake by the growing crop.
Employment Challenges in Kenya
(Centre for Economics and Community Economic Development, 2013) Omolo, Jacob
This paper explores the employment challenge in Kenya. It focused on the past employment creation interventions adopted by the country over time, their outcomes and the status of the country’s employment policy. Kenya’s employment challenge is manifested in terms of a 12.7 per cent open unemployment rate, 21 per cent underemployment and a working poor estimated at 46 per cent of the employed. The employment challenge is heightened by rapid population growth at 3 per cent per annum, a youth bulge of 67 per cent of the adult population, low and un-sustained economic growth, and structural rigidities. The paper establishes that much of the employment creation measures adopted by the government have recognized the role of economic growth in employment. This is despite the low employment yield of the country’s economic growth attributed to sluggish economic growth. To reverse the trend in slow employment growth, Kenya must focus on ensuring high and sustained economic growth. In addition, employment needs to be put at the centre of the country’s macroeconomic policies. Since a large proportion of the Kenyan labour force, even under the best scenario, will remain in the informal sector, the living standards of Kenyans will only brighten if the productivity and employment conditions of informal employment improve. It is envisaged that improving the productivity of the informal sector with a well balanced mix of economic and social policies will make a remarkable contribution to improve the labour and living conditions of a large number of Kenyans.
Community-Based Conservation, Income Governance, and Poverty Alleviation in Tanzania: The Case of Serengeti Ecosystem
(SAGE, 2013) Wawire, N. H. W.; Mwakaje, Agnes G.; Manyasa, E.O.; Muchai, Muchane; Ongare, David; Mugoya, Charles; Masiga, Clet Wandui; Nikundiwe, Alfeo
Protected areas occupy about 27% of Tanzania’s land of 945,000 sq km and contribute 17.5% of its GDP. But who benefits from and pays for the cost of conservation? This study provides insights into these issues based on a survey conducted in the Serengeti ecosystem, involving 20 villages in Serengeti and Loliondo. The results show that villagers received insignificant benefits from conservation compared with the costs they are incurring. Governance of income at the village level was also a major challenge. There was a lack of capacity to handle large amounts of money and little or no planning, transparency, and accountability. It is recommended that income allocation to the communities is increased and external audits of village funds are conducted. Communities should furthermore be allowed to extract resources sustainably in protected areas. Youth should be encouraged to attend higher education and wildlife technical colleges to learn about the values of wildlife. Finally, the governance structures must be improved to make them gender equitable, participatory, transparent, and fully accountable to the communities and all citizens.
Rate and Trends of Academic Performance Index and Level of Subject Satisfactory Outcomes
(www.iiste.org, 2013) Gravenir, F. Q.; Sika, James Ochieng; Riechi, Andrew
The acquisition of numeracy and literacy skills is a condition for better life and an important indicator to human development index. However where society academic performance outcomes becomes unsatisfactory, parents becomes disoriented and hence it becomes a concern. The study focused on rate and trends of academic performance index at secondary level. The descriptive and causal comparative designs were used in this study. The sample of the study comprised 85 head teachers’, 765 teachers’, 3349 students and one DEO. Questionnaires’ and interview guides were used. The study showed that trend of academic performance index was fluctuating while for any academic year only a paltry 5 percent gained direct entry to university, 30 percent had to look for options in parallel programs while majority relied on other options to further their studies. Further observation indicate that mathematics had very unsatisfactory outcomes, sciences and languages had unsatisfactory performance while art based subjects had features of satisfactory performance and hence the system delivering secondary education is technically inefficient. The implication is that subjects meant to lead the country into industrialization were worst performed hence vision 2030 may not be achieved. It was found that Poor performance was as a result of inability of teachers to complete syllabus.
The impact of population change on economic growth in Kenya
(World Academy of Science, Engineering and Technology (WASET), 2013) Thuku, Gideon Kiguru; Gachanja, Paul Mwangi; Obere, Almadi
The debate on the relationship between population growth and economic growth has been undergoing and varies across countries. The first theory states that population growth stimulates economic growth. The second theory view population growth as a factor that adversely affects economic growth while a third school is that population growth is a neutral factor in economic growth and is determined outside standard growth models. Given this scenario there was a need to establish the relationship between economic growth and population growth in Kenya. The study employed Vector Auto Regression estimation technique and used annual time series data for the period 1963 to 2009. The results indicated population growth and economic growths are both positively correlated and that an increase in population will impact positively to the economic growth in the country. The study concludes that in Kenya population growth promotes economic growth and subsequently economic development.
Regional Financial integration and economic growth in the East African community
(World Academy of Science, Engineering and Technology (WASET), 2013) Muthoga, S.; Obere, Almadi; Mburu, Kimani; Muchai, Dianah
This paper aimed at establishing effects of regional financial integration on economic growth in East African Community (EAC). Conflicting views on the effects of financial integration on economic growth prompted the study. Quantitative and qualitative data between year 2000 and 2009 from the East African community was used. This paper employed the general method of moments in its analysis. Results showed that regional financial integration significantly stimulated economic growth of the EAC. The study recommends that EAC coordinating committee promote effective bank supervision to achieve uniform bank spread, initiate ways of issuance of common bond and develop secondary markets for all financial assets in the region
The response of maize production in Kenya to economic incentives
(International Society for Development and Sustainability (ISDS), 2013) Wawire, N. H. W.; Onono, Perez Ayieko; Ombuki, C.
Agricultural development policy in Kenya has emphasized the use of incentives towards increased production and therefore self-sufficiency in maize which is a basic staple for most households. The channels used to provide incentives to maize farmers over the years include setting higher producer prices; subsidization of inputs; provision of agricultural credit, research and extension services; construction and maintenance of roads, development of irrigation and water systems; legislative, institutional and macroeconomic reforms. Despite these efforts output of maize has remained below domestic requirements in most years and the country continues to rely on imports to meet the deficits. Studies have assessed the responsiveness of maize to output price and reported inelastic responses and have recommended policies targeting non-price incentives to complement prices for the required increased production of maize. The studies, however, did not analyze the influence of the non-price incentives on the production of the crop. The findings of those studies are therefore deficient in explaining the relative importance of different non-price incentives and how they complement prices in influencing maize production in Kenya. This study investigated the response of maize production to both price and non-price incentives. The aim of this study was to ascertain the relative importance of non-price factors in influencing production of the crops as well as complementarity between price and non-price incentives. The findings show that maize production responds positively to its output price, development expenditures in agriculture, maize sales to marketing boards, growth in per capita GDP, liberalization and governance reforms. However, maize production responds negatively to fertilizer price and unfavorable weather conditions. The response of maize output to its price is lower with rising inflation and grain market liberalization.

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