RP-Department of Econometrics and statistics

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The Demand for Energy in the Kenyan Manufacturing Sector
(ICEED, 2009) Onuonga, Susan Moraa; Etyang, Martin; Mwabu, Germano
The manufacturing sector accounts for approximately 10 percent of Kenya's gross domestic product (GDP). The sector's output grew at an average rate of 8 percent per annum between 1970 and 2005. The growth of manufacturing was associated with the greater use of inputs, including all forms of energy. In the government's planning document, Kenya Vision 2030, the manufacturing sector is expected to continue contributing 10 percent annually to Kenya's GDP.1 The manufacturing sector mainly uses electricity and oil as sources of energy in its production processes, distribution, and transport services. The utilization of these two forms of energy, on average, has been rising, resulting in terms of energy and total
Determinants of Choice of Mobile Money Transfer Service Providers in Nairobi County, Kenya
(International Journal of Development and Sustainability, 2018) Mbugua, John; Gachanja, Paul Mwangi; Muli, James Mulinge; Muthoga, Samuel Karagu
In the developing world telecommunication sector has developed widely. Such development includes Mobile Money Transfer Service (MMTS), transfer of money using Information and Communications Technology (ICT) framework and Mobile Network Operators (MNO). Policy makers and cell phone organizations have all touted the capability of cell phones to eradicate poverty. Mobile innovation has kept on reforming banking and payment frameworks in Kenya, with arrangement of utilizations that empowers assorted mobile money transfer services (MMTS). In Kenya there are several mobile money transfer service provider. Various studies done reveals that users choose different mobile money transfer service provider. The objective of this study was to determine the factors that determine the choice of mobile money transfer service provider. The study adopted Multinomial Logit regression. The marginal effects results revealed that variables; ease of access, cost of transaction and convenience were significant in all the three models estimated representing the three service providers with one dominant service provider being the reference category. However, variables age, number of mobile phones and gender were not significant all along in determining the choice of MMTS service provider across the different service providers. Based on key findings, this study recommends increase in the number of money agents outlets by each service provider with smaller market shares to ease access, aggressive advertising to raise awareness of the existence of specific providers and to take high consideration before making any transaction costs reviews as households were found to be highly responsive to transaction costs.
An econometric analysis of effect of poverty on health status in Kenya
(Scientific & Academic Publishing, 2018) Musyoka, Peter K.; Omolo, Jacob; Korir, Julius; Nzai, Charles
One of the most important social-goal world-over is the achievement of good health. This is because, apart from been a fundamental right, it is also an invaluable asset and a prerequisite for improved productivity. However, the benefits associated with good health status may not be enjoyed in the presence of high poverty rates. Thus, poverty reduction is important in ensuring enjoyment of good health. In Kenya, despite the government’s effort to reduce poverty and improve health status of her citizens, poverty has remained high and health indicators have not been impressive either. This paper,therefore, sought to establish the effect of poverty on health status in Kenya. The study used Ordered Probit and the 2013 Kenya Household Expenditure and Utilization Survey dataset to achieve its objective. Estimation results indicate poverty reduction increased the probability of reporting own health as being very good and reduced that of reporting poor health,ceteris paribus. Increase in household size by one member increased the likelihood of reporting own health as being poor other factors held constant. A one year increase in age increased the probability of reporting poor health and reduced that of reporting very good health holding other factors constant. The probability of urban residents reporting own health as being poor was higher than their rural counterparts ceteris paribus. Being employed increased the probability of reporting own health as being very good compared to being unemployed other factors held constant. The study based on the findings concludes that poverty decreases the probability of reporting good health and, therefore, it is important for the government to formulate and implement policies that reduce or eradicate poverty.
The Effect of Education on Business Skills Cognition: The Case of Indigenous Microscale Enterprise Owners in Kenya
(Taylor & Francis, 2003) Bosire, Joseph; Etyang, Martin
One of the expected utilitarian values of education is the development of competencies for effective business practice after school. This article presents findings of a study on the effect of education on Business Skills Cognition among indigenous microscale business owners in Kenya. Data were collected from 208 respondents using an interview schedule, observation schedule and checklist. Business Skills Cognition as the dependent quantitative variable was measured using five broad dimensions of business practice to yield a continuum of scores ranging from a minimum of 45 to a maximum of 265 points. Results from chi-square, and One Way Analysis of Variance showed that the association between education levels, and Business Skills Cognition was positive and significant. The article discusses the implication of these findings for education delivery and training for enterprise development in Kenya and any other society that is keen on the utilitarian values of education.
Effect of Employees’ Leadership Skills on Project Performance in the Energy Sector in Kenya
(International Academic Journals, 2018) Musembi, Annastacia Katumbi Kavita; Guyo, Wario; Kyalo, Dorothy Ndunge; Mbuthia, Aflonia
The purpose for this study was to investigate the effect of employees’ soft skills on project performance in the Kenyan energy sector. The objective of the study was to establish the effect of employees’ leadership skills on project performance in the Kenyan public energy sector. The study employed both cross-sectional and correlation design. Purposive sampling technique was employed to select the projects that were studied. The population comprised all the project supervisors who led the project teams in the ongoing projects in the energy sector ending between January2016 to December 2018. In particular the study focused on the transmission projects, the generation projects, nuclear projects and the distribution projects. A total of 85 ongoing projects were selected. Out of these 9 were used in the pilot study. Therefore 76 projects were chosen for the study. A Questionnaire comprised of closed and open-ended research questions taking the format of five-point Likert-type interval scale was used to assemble primary data from project supervisors. The study established that employees’ leadership skills positively affect project performance in the energy sector in Kenya (R²=0.668, P=0.00). The study highlights the essential components of employees’ soft skills that would inform effective project performance. The study differed from other studies by empirically showing how comprehensive integration of leadership skills can affect project performance and also offers the possibility of contributing to change the way projects are planned, designed and implemented. On the basis of findings, the study recommends that both transactional and transformational leadership styles should be used in the management of projects with a greater emphasis on transformational leadership style. The study also suggests that further studies should be carried out in other sectors and countries and they should involve more soft skills.
Effect of Employees’ Soft Skills on Performance of Public Energy Sector Projects in Kenya
(International Academic Journals, 2018) Musembi, Annastacia Katumbi Kavita; Guyo, Wario; Kyalo, Dorothy Ndunge; Mbuthia, Aflonia
The purpose for this study was to establish the effect of employees’ soft skills on project performance in the sector. In line with these objectives, one hypothesis was developed and pragmatic paradigm adopted to support a mixed method research design. In particular the study employed both cross-sectional and correlation design. Purposive sampling technique was employed to select the projects that were studied. The population comprised all the project supervisors who led the project teams in the ongoing projects in the energy sector ending between January2016 to December 2018. In particular the study focused on the transmission projects, the generation projects, nuclear projects and the distribution projects. A total of 85 ongoing projects were selected. Out of these 9 were used in the pilot study. Therefore 76 projects were chosen for the study. A Questionnaire comprised of closed and open-ended research questions taking the format of five-point Likert-type interval scale was used to assemble primary data from project supervisors. The Statistical Package for Social Sciences (SPSS) program version 23 was utilized to conduct regression analysis, its results used to determine coefficients of multiple regression models, test hypotheses, evaluate reliability of estimated relationship and establish sample regression model. The investigation also found out that the combined employees soft skills positively affect project performance in the energy sector in Kenya (R²=0.633, P=0.00). The study highlights the essential components of employees’ soft skills that would inform effective project performance. The study differed from other studies by empirically showing how comprehensive integration of soft skills can affect project performance and also offers the possibility of contributing to change the way projects are planned, designed and implemented. On the basis of findings, the study recommends that both transactional and transformational leadership styles should be used in the management of projects with a greater emphasis on transformational leadership style. It also advocates for the establishment of clear communication plans with simple and collaborative channels for effective communication. In addition, there should be proper feedback systems, regular communication and free access to information. Communication channels should be chosen depending on the target audience. The research also proposes good stakeholder management in projects. It recommends stakeholder involvement at every stage of the project life cycle. Furthermore, it suggests prompt and adequate compensation of stakeholders, timely completion of projects, innovativeness and proper redress of stakeholder concerns. On the organizational environment, the study advises on the need for improvement on management practices, provision of the appropriate materials and equipment, provision of adequate and timely funding. It also proposes that the challenges in the physical environment should be dealt with besides providing adequate staff with the right skills. The study also suggests that further studies should be carried out in other sectors and countries and that they should involve more soft skills.
Effects of Energy Efficiency on Firm Productivity in Kenya’s Manufacturing Sector
(Canadian Center of Science and Education, 2022-03-22) Macharia, Kenneth Kigundu; Ngui, Dianah; Gathiaka, John Kamau
There is concern about probable energy efficiency and economic performance trade-off, particularly in developing countries which often require more energy consumption to spur their economies. This study assesses the relation between energy efficiency and total factor productivity in Kenya’s manufacturing sector by applying a sample of firms in the World Bank Enterprise Survey. Energy intensity is used as a proxy for energy efficiency while total factor productivity is estimated using the Levinsohn-Petrin Algorithm. A dynamic panel data model is applied in the analysis of the energy efficiency and total factor productivity relationship which is at the sub-sector and firm size levels. The sub-sectors of concern are: chemicals, pharmaceuticals and plastics, food, textile and garments and paper and other manufacturing sub-sectors. Firm sizes of interest are: small, medium and large. The findings show heterogeneity in energy intensity across sub-sectors. Total factor productivity is also found to be heterogeneous across sub-sectors and firms of different sizes. The estimates show that in general, energy efficiency significantly promotes total factor productivity. Other factors that promote total factor productivity include capital intensity, age, size, top manager’s years of experience, foreign ownership and exporting status. However, the effect of these variables varies across the sub-sectors and firm sizes. The study findings suggest that policies to improve energy efficiency should be accorded additional emphasis jointly with improvements in total factor productivity.
Energy efficiency in the Kenyan manufacturing sector
(Elsevier, 2021) Macharia, Kenneth Kigundu; Gathiaka, John Kamau; Ngui, Dianah
As one of the highest energy-consuming sectors, Kenya’s manufacturing sector share of electricity consumption in 2019 was 50.16%. That of fuel consumption was 12%, the second-highest after the transport sector. It is therefore important to analyze the sector’s energy efficiency and its determinants. A stochastic frontier analysis based on the assumption of a translog production function at the sub-sector level is estimated by employing a pooled model covering the years 2007, 2013 and 2018 in the analysis of electricity efficiency and 2007 and 2013 in the analysis of fuel and total energy efficiency. The sub-sectors of interest are: chemicals, pharmaceuticals and plastics, food, textile and garments and the other manufacturing sub-sector. The results show significant potential to enhance electricity, fuel and total energy efficiency across all the sub-sectors. The findings further reveal that exporting status, research and development, top managers’ experience and female ownership enhance energy efficiency. The effect of these variables is, however heterogeneous by sub-sector and energy form. Labor productivity negatively influences electricity, fuel and total energy efficiency while the effect of firm age and size is ambiguous. Finally, the study provides policy implications for the design of policies to improve energy efficiency.
Enhancing Growth and Productivity Through Mobile Money Financial Technology Services: The Case of M-Pesa in Kenya
(Canadian Center of Science and Education, 2023-11-20) Wachira, Gladys; Njuguna, Angelica
Kenya’s financial industry has been revolutionized and progressing to digital transformation since M-pesa, a mobile money financial technology service, was introduced in 2007. An M-pesa account allows subscribers to send and receive payments as well as store money. As the digital system grew rapidly, a high percentage of Kenyan households gained access to this service, subsequently helping the unbanked and underbanked populations toward broader financial inclusion. As an efficient and highly adaptable payments system communicating across all markets in the economy, M-pesa has contributed to financial deepening, hence promoting economic development. This study analyzed the effects of mobile money financial technology services on Kenya’s output growth and productivity. The findings suggest evidence of a structural change in the growth of output and total factor productivity when M-Pesa was introduced. Mobile Money was established to have had a significant positive effect on enhancing output productivity and output growth.
Entrepreneurial Opportunity Discovery Dimensions and Growth of Nongovernmental Organizations in Kenya
(International Journal of Research in Business and Social Science, 2019-08-19) Tindika, Olive Kamene Ndeveni; Wanjau, Kenneth Lawrence; Kariuki, George Mbugua; Muchiri, Joseph
Non-Governmental Organizations (NGOs) play a critical role in addressing social ills like poverty, employment, and food insecurity; therefore, their growth prospects enhance their ability to address these social ills. Discovery of entrepreneurial opportunities amongst the agro-based NGOs has not got the desired attention, and it is the least researched area in social entrepreneurship. This study investigated the relationship between Entrepreneurial Opportunity Discovery Dimensions and Growth of Non-Governmental Organizations in Kenya. It employed correlation design and was anchored on the Kirznerian Entrepreneurship Theory. The target population was 135 agro-based NGOs in Kenya. A mixed-method approach was used, combined qualitative and quantitative techniques. Statistical Package for Social Sciences (SPSS) version 21 and Analysis of Moment Structures (AMOS graphic- 25) aided in the analysis. Structural Equation Modeling (SEM) using AMOS and Simple linear regression analysis were the primary analysis techniques used to evaluate the relationship between entrepreneurial opportunity discovery dimensions and the growth of NGOs. The results indicated that alertness0.372, p=0.033)and prior knowledge (0.163, p=0.031) have a significant favorable influence on growth, while social networks 0.047, p=0.713) showed an insignificant effect on the growth of NGOs. Investing in acquiring alert individuals and helping them gain relevant knowledge in the 21sttechnologies and emerging issues can lead to increased NGO ability to continue serving the community effectively and be engines of development for the general good of Kenya
Estimating a Finite Population Mean under Random Non-Response in Two Stage Cluster Sampling with Replacement
(Scientific Research Publishing, 2017) Bii, Nelson Kiprono; Onyango, Christopher Ouma; Odhiambo, John
Non-response is a regular occurrence in Sample Surveys. Developing estimators when non-response exists may result in large biases when estimating population parameters. In this paper, a finite population mean is estimated when non-response exists randomly under two stage cluster sampling with replacement. It is assumed that non-response arises in the survey variable in the second stage of cluster sampling. Weighting method of compensating for non-response is applied. Asymptotic properties of the proposed estimator of the population mean are derived. Under mild assumptions, the estimator is shown to be asymptotically consistent.
Financial Development and Economic Growth in Kenya: An Empirical Analysis 1980–2011
(Canadian Center of Science and Education, 2014) Onuonga, S.M.
The paper examined the empirical relationship between economic growth and financial development (FD) in Kenya over the period 1980–2011. The long-run and short-run parameters were estimated by use of autoregressive distributed lag (ARDL) bounds testing approach for co integration analysis. To determine the direction of causality, Granger causality analysis was done. Empirical findings indicate that there is stable long-run relationship among, financial development, trade openness and economic growth in Kenya. It also finds that financial development has a significant positive effect on economic growth. The magnitudes of the ECT coefficients suggest that the speed of adjustment in each of the estimated model is very high. The Granger causality tests showed that there is bi-directional causality between financial development and economic growth in Kenya for the period under study (1980–2011). This result therefore, supports both the supply leading, and demand following hypotheses. This means that financial development accelerates and augments economic growth in Kenya and that economic growth leads to development of the financial sector in Kenya. Thus, the government should strengthen the reforms in the financial sector so as to attract investors and improve the efficiency of all production activities in the country. At the same time, the government should enhance macroeconomic policies; fiscal policies, policies that attract foreign direct investment, and export promotion policies that on average lead to economic growth should.
Government Expenditure and School Efficiency and Productivity Change: A Case of Public Primary Schools in Kenya
(Science Publishers, 2019-04-16) Mutuku, Mutinda; Korir, Julius; Ngui-Muchai, Dianah
Education management is a more labor intensive process previously measured by level of school enrolment and education quality with low or no concern on productivity and efficient resource utilization. Trends in increasing government allocation to education sector demonstrate a positive impact on enrolment, education quality and efficiency levels determined in the study. However, there was a gap on how government expenditures impacted school technical efficiency in public primary schools. To determine schools’ technical efficiency and relative determinants; this study used data from the Southern and Eastern Africa Consortium for Monitoring Educational Quality (SACMEQ) data which evaluated class six performance for 3 times periods (2000, 2004, 2012). In the analysis, Data Envelopment Analysis (DEA) and Two Stage Least Squares are applied. Results revealed that technical efficiency scores in 8 provinces were lower in 2004 compared to 1997 but increased in 2007 with productivity change exhibiting same trends. Input change for enrolment and school amenities affected overall output. Class-pupil and pupil–toilet ratio, distance from small town, dispensary, bookshop and secondary school as well as class type contributed negatively to efficiency scores. Class-book ratio, government expenditure, playfield availability and class numbers contributed positively to efficiency. The results showed that schools located near main road and library had positive relationship to level of efficiency. On policy, expenditures should be increased towards quality classes and more qualified teachers who are high determinants efficiency.
Impact of Firm-Level Innovation on Productivity of manufacturing and Service firms in Sub-Saharan Africa
(Taylor \& Francis, 2023) Ndicu, Simon; Barasa, Laura; Ngui, Dianah
This study investigates the impact offirm-level research andinnovation on the productivity of Sub-Saharan Africanfirms in2014–2018. This study utilizes World Bank Enterprise Surveys on2,867 manufacturing and servicefirms conducted in SSA in 2018/19. Endogenous Switching Regression (ESR) was used as theprimary estimation methodology. The results indicated thatResearch and Development spending positively and significantlyimpacts manufacturingfirms’productivity. In addition, serviceinnovation has a positive and significant effect on theproductivity of servicefirms. In contrast, product innovation isinsignificant to manufacturingfirms’productivity. Lastly, processinnovation is significant only to the manufacturingfirms and notthe servicefirms. These results suggest that Sub-Saharan Africanfirms did not realize maximum innovation productivity gainsduring the study period. Nonetheless, the results imply that otherthan the conventional factor-driven production, Sub-SaharanAfricanfirms have the potential to drive their productivitythrough semi-endogenousfirm-level innovation
Impact of GDP and Exchange Rates on Foreign Direct Investment in East African Community
(International Journal of Science and Research (IJSR), 2022) Mwalya, Wambua; Gitahi, Njuru Stephen
This study investigates the impact of macroeconomic factors, specifically Gross Domestic Product GDP and exchange rates, on Foreign Direct Investment FDI in the East African Community EAC. The research aims to determine the effect of these factors on FDI and to establish if there is an endogeneity of exchange rate and GDP with respect to FDI in the EAC. The study uses nonexperimental research design and various statistical methods to analyze published annual data from 2000 to 2021. The results reveal that GDP, infrastructural development, trade openness, and ease of doing business significantly influence FDI in the EAC, while exchange rate negatively affects FDI. The study also finds an endogeneity of exchange rate and GDP with respect to FDI in the EAC. These findings suggest that policymakers in the EAC need to prioritize improving economic growth and stabilizing exchange rates to attract more FDI. Further research is recommended in other regions for comparative analysis.
Institutions’ effect on households’ choice of saving options in Kenya
(The International Journal of Business & Management, 2018-04) Njenga, Githinji; Onuonga, Susan M.; Sichei, Moses Muse
The study uses a multinomial/conditional probit model to analyze the effect of institutions on households’ saving behavior in Kenya. Data from the Financial Access National surveys is used in the analysis. The key finding in the study is that institutional factors including access to a saving option, incentives in a saving option, information and saving expectations influence the choice of saving options in Kenya. This result suggests that institutional factors influence households’ saving behavior particularly their participation in the savings options. Hence, easing access of savings options, motivating households through incentives, making households more informed of their saving choices and opportunities, and offering financial literacy to households on saving goals and targets are all critical in enhancing households saving participation in Kenya.
Integrating Corporate Social Responsibility and Community Development in Industrialization: Lessons from the Magana Town Industrial Park in Kenya
(Post Academic Publications, 2013) Gachanja, P. M.; Mugenda, Olive M.; Maina, L.
Corporate Social Responsibility (CSR) refers to the pursuit of commercial success in ways that honor ethical values, compliance with legal requirements and respect for the people, communities and the natural environment. While CSR can be clearly distinguished from philanthropy or charity, making an economic contribution is often seen as the most important and effective way for business to make a social impact. The debate about the ethical and social aspects of business has forced firms to react to the social and ethical pressure of the public. CSR of the company will only be correctly perceived by the public if its social and environmental value creation is transparent. The main rationale why firms get involved in CSR is to improve the image of the company besides corporate sustainability and adherence to a mission statement or CSR policy. While CSR is widely practiced in most industrialized nations, it remains grossly underdevelopment in Kenya. This study sought to establish the extent to which the Magana Industrial Park has integrated CSR in its mission for enterprise. The study targeted 900 households drawn from nine villages that lived within the radius of 10 kilometers from the industrial park, as well as the workers employed in the 15 firms located around Magana Town. To obtain in depth insights and knowledge, key informants interviews were carried out with the managers of a sample of five of the firms. Besides, at least 10 focus group discussions were carried out to generate information on public perception on CSR practice. The study established that the concept of CSR in the industrial park was either misunderstood or ignored all together. Only one enterprise had an elaborate policy on CSR. All others had a vague definition of CSR and a very scanty evidence of any CSR. The study recommends that the Ministry in charge of Industrialization should explore the possibilities of a policy document that will formalize or institutionalize CSR in both public and private sector enterprises. The government also needs to play its role in providing the basic infrastructure to eliminate unnecessary expenses to the enterprises.
Maize Output Supply Response to Climate Change in Kenya: An Econometric Analysis
(European Scientific Institute, 2020) Kariuki, George Mbugua; Njaramba, Jennifer; Ombuki, Charles
Sufficient production of maize in Kenya is synonymous to food security and a source of income. Majority of the households in the country grow maize as the main staple food and forms the diet of over 85 percent of the population. Climate change potentially compromises maize production as 98 percent of agriculture is rainfed, threatening food security and rural livelihoods. This study sought to understand the effects of the changing temperature and rainfall patterns in Kenya on maize output. The study adopted Autoregressive distributed lag econometric modeling approach using data for the period between 1970 and 2014. The findings shows mixed response of maize output to rainfall and temperature changes depending on the period, with temperature variability having negative effects. In absence of climate change adaptation and mitigation, Kenya will become more food insecure. There is need to formulate all-inclusive policies paramount in building adaptation and mitigation mechanisms.
Nexus between Participation in Agriculture and Youth Welfare in Bomet County, Kenya
(Journal of Economics, 2023-09) Kiprono, Kevin; Njaramba, Jennifer
Kenya’s youth unemployment rate stands at 39 percent, forming the largest group of the unemployed in the country. The cohort possesses innovative behavior, minimal risk aversion, less fear of failure, less conservativeness, greater physical strength and greater knowledge acquisition propensity. The agriculture sector offers a huge opportunity for the creation of employment for the youth in the country. Despite the vital role the agricultural sector plays in the economy of Kenya, youth are yet to fully exploit its potential. Like in other countries, literature posits that youth participation in agriculture is low and major determinants of participation in agriculture are; education level, access to land, access to finance, household size and access to market. Youth perceive agriculture as a career of last resort that has low monetary benefits. The study sought to establish participation in agriculture and its effects on the welfare of the youth in Bomet County. A sample of 399 youths were picked as a representative sample. The study employed frequencies and percentages in analyzing the descriptive statistics of the study. Logistic regression was adopted in estimating the model. The study undertook various diagnostic tests before estimating the models to ensure that the model is fit in determining the relationship of study variables. The predicted probabilities for youth to participate in agricultural activities was 32.0 percent. The results from the study also showed that participating in agriculture improved welfare majorly through increased income and food. Model results established that marital status, university education, land size, financial access, access to ICT infrastructure, market distance, household size and agricultural training significantly influenced welfare of youth practicing agriculture. The study recommends that the government creates financial credit specifically tailored for majority of the youth who do not have the required collateral. There is also a need for the government to build more agricultural training institutes so that youth can learn diverse agricultural productions.
The Nexus between Poverty, Inequality and Growth, a Case Study of Cameroon and Kenya
(Oxford Academic, 2023) Epo, Boniface Ngah; Baye, Francis Menjo; Mwabu, Germano; Etyang, Martin N.; Gachanja, Paul M.
We conduct an in-depth analysis of the nexus between inequality of opportunity and inclusive growth in Cameroon and Kenya employing cross-sectional data collected over two time periods in each country. Empirical results show that changes in education, health and labour market endowments have large effects on household economic well-being, as proxied by total expenditures per adult equivalent. Employing the regression-based decomposition, we find that effort-based variables are associated with greater Gini inequality compared with circumstance-based variables—more so for Cameroon than Kenya. Among the effort-based variables, education in Cameroon and health in Kenya, are the main correlates of income inequality. The factual and counterfactual distribution analyses undertaken demonstrate that equalisation of human capital endowments is strongly inequality-reducing and further promotes pro-poor growth. Meanwhile, elimination of circumstance disparities in Cameroon reduces Gini inequality, enhances pro-poorness of the growth process, promotes shared-prosperity in urban areas and reduces inequality between the tails of the distribution of well-being. In Kenya, elimination of circumstance-based disparities is pro-poor improving, shared prosperity enhancing, but Gini inequality augmenting. In contrast to the Cameroonian case, equalisation of circumstances increases inequality between the tails of the distribution of well-being. The mechanisms behind these findings are probably the country-specific redistributive policies.

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