RP-Department of Economic Theory

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The Effect of Rule of Law on Total Factor Productivity in Kenya
(Iosr Journal of Economics and Finance (Iosr-Jef)., 2023) Mungai, Peter M.; Mwilaria, Shadrack M.
Economies across the globe have witnessed wide variations in incomes, inviting researchers and policy makers to explore various interventions to bridge the gap. Among the interventions floated is focusing more on productivity levels than the accumulation of inputs. Total Factor Productivity, defined as a measure of output growth not explained by factor inputs, has been fronted as the solution to the widespread variations. Kenya targets achieving an annual Total Factor Productivity growth rate of 2.5 from the current 0.352 to achieve vision 2030 and Sustainable Development Goals. One way to increase Total Factor Productivity is by creating an enabling and conducive environment where factor inputs operate. Institutions, specifically the Rule of Law, play a vital role in ensuring a thriving environment. This study, therefore, sought to establish how the Rule of Law affects Total Factor Productivity in Kenya both in the short run and in the long run. The study adopted an Auto Regressive Distributed Lag Model with an error correction term, which was informed by the presence of co-integration relationships as established by the ARDL bound test. The study utilized a time series data set for the period 1996 to 2020, obtained from secondary sources. The ARDL bound test for co-integration was employed since variables were found to be of mixed series. The study found a positive long-run relationship and a negative short-run relationship between the Rule of Law and Total Factor Productivity in Kenya. Consequently, the study recommended that the government of Kenya should provide both technical and budgetary support to those institutions that promote the entrenchment, adherence and upholding of Rule of Law as one of the ways of improving TFP levels.
Effects of Budget Deficits on the Exchange Rate in Kenya: 1993-2021.
(Iosr Journal of Economics and Finance (Iosr-Jef), 2023) Ricy, Rianne Nyanchama; Mugendi, Charles
Theexchange rate is considereda significant metric for a nation's competitivenessin the internationalmarket and economic performance in general. At the same time, the persistence and widening of the budget deficits in Kenya hasraised much concern among economists and policymakers since it determines a nation’s financial health.Raising the need to examine the connection between budget deficits and the EXR. With that being said, theories on howthe EXR is influenced by budget deficits are contradictory and despite attempts made by empirical studies tying budget deficits to theEXR,there remains to be controversy in their findings with each contention faced with a counter-argument. Therefore, this study utilizedquantitativeannual time series data spanningfrom 1993 to 2021 and the ARDL model to establishhowbudget deficitsaffect the EXR in Kenya, differentiating the indirect and direct effects,which is crucialin determination of the exact relationship between these variables. The study revealed that the budget deficit has a positive effect on the EXR. The study also revealed that the CAD and TOT have a positive effect on the EXR. However, the effect of the TOT on the EXR is insignificant. The study concluded that since budget deficits influence the movements in the EXR, there is need to keep the widening budget deficit in Kenya in check. Further, the study recommended the establishment of a regulatory framework tailored towards budget deficit reduction and debt sustainability.
Effects of Selected Macroeconomic Variables on Market Capitalization of Nairobi, Kenya
(The International Journal of Humanities & Social Studies, 2024) Anne, Avonde; Muthoga, Samuel
This study examined the effects of selected macroeconomic variables on the market capitalization of the Nairobi Securities Exchange in Kenya during the period 2010- 2022, based on the Arbitrage Pricing Theory (APT) using quarterly data. The autoregressive distributed lag model technique was applied to test how market capitalization was affected by the macroeconomic variables. Gross domestic product, money supply, and inflation were stationary at the level while interest rate, market capitalization, and exchange rate became stationary at first difference. From the empirical results, no co-integration between market capitalization and exchange rate, money supply, interest rates, Gross domestic product, and inflation was found by use of bounds test. Money supply and inflation had a weak influence on market capitalization; interest rate, Gross Domestic Product, and first lag of the exchange rate were positive and affected market capitalization, while the exchange rate at the current level affected market capitalization negatively. It was concluded that macroeconomic variables affect market capitalization. The study recommends that the government need to put up relevant policies that increase gross domestic product. Policymakers need to consider macroeconomic variables during policy formulation on market capitalization.
The Nexus between the changes in Oil output in the United Arab Emirates and the Volatility of Petrol Prices in Kenya
(ATCR Publishing, 2023-11) Rotich, Samson Kiptoo; Muthoga, Samuel
The volatility of petroleum prices in Kenya compels an analysis into the fundamental causes of the recurrent fluctuations. Movements in oil production from important importing sources play a role in determining petroleum prices in importing countries. However, no clear model exists that explains how these changes in oil output affect the price of gasoline in Kenya. Additionally, there is no framework that explains how long these shocks last in the Kenyan market. The present situation has opened the door for a research project designed to comprehend the effects of changes in oil output from the United Arab Emirates on gasoline costs in Kenya. The two main goals of the study are to first determine how monthly oil output changes in the UAE affect Kenyan gasoline prices between 2017 and 2020, and then to determine how long the effects of oil production shocks from the UAE last in the Kenyan gasoline market. In order to determine whether monthly variations in oil output from the United Arab Emirates have an impact on Kenya's gasoline prices and whether oil production shocks from the United Arab Emirates have lasting effects on the Kenyan gasoline market, the research is set up as a hypothesis-driven investigation. The study made use of concepts from the Real Business Cycle theory and the conventional notion of market self-adjustments. The analysis relied on secondary data which were collected from various sources including OPEC, EIA, Central Bank of Kenya and World Bank’s websites. The data were processed using the R programming language. After analysis, a model was constructed, enabling the derivation of conclusions and subsequent recommendations.
Adopted Technology and Performance of Micro and Small Enterprises in Nairobi
(IOSR Journal of Economics and Finance, 2023) Kiprono, Kirui Michael; Rono, Gladys
Micro and small enterprises around the world were acknowledged for their indelible part in spurring economic development. In Kenya, the government introduced numerous policy approaches that targeted the growth and promotion of Micro and Small Enterprises, most notably the Micro and Small Enterprises Act of 2012, which established the Micro and Small Enterprises Authority and introduced the Kenya Industrial Estate. Despite numerous initiatives by the government and other statutory organizations, studies revealed that 70 percent of Micro and Small Enterprises failed within their initial three years of existence, rendering their survival in the market space low. This was despite the efforts put in by the government of Kenya and other stakeholders to promote Micro and Small Enterprises in the country. Micro and Small Enterprises were faced with many challenges, including inadequate funding, low levels of skill, infrastructure, political instability, and operating expenses. Technology and innovations were directly proportional to improvements in micro and small enterprises. This study was conducted in Nairobi Central Business District. The study, therefore, tried to find out the effect of adopted technology on the performance of Micro and Small Enterprises in the Nairobi Central Business District. The objective of the study was to establish the effect of marketing innovation on the performance of Micro and Small Enterprises in Nairobi Central Business District. The empirical model of the study was based on the Cobb Douglas production function. A sample of 270 Micro and Small Enterprises from a target population of 752 in Nairobi Central Business District was selected, and a self-administered questionnaire was administered to the entrepreneurs. The reliability of the questionnaire was determined using Cronbach's alpha and was found to be 0.72. Collected data was analyzed. Some moderator variables, such as Business management skills, gender, education, and the number of years of operation, were analyzed, and descriptive statistics were used to illustrate their effect on the performance of the enterprise. Data analysis results showed that marketing technology had a positive influence on the performance of Micro and Small Enterprises in Nairobi Central Business District. Therefore, Policymakers were encouraged to encourage Micro and Small Enterprises to adopt technology enabled marketing strategies. Providing incentives, training programs, and resources to help them establish and maintain an online presence was recommended.
Effect of Board Size on Tax Planning Amongst Firms Listed at the Nairobi Securities Exchange, Kenya
(International Journal of Social Science and Humanities Research, 2023-07) Guyo, Mohamednur brahim; Waweru, Fredrick Warui
Tax planning is one of the critical tools used by both government and firms to achieve optimum revenue. Tax laws are formulated by different government authorities to derive maximum benefit from tax provisions. Although tax preparation might boost profitability, it can also come at the expense, preventing businesses from optimizing revenue by tax planning. For example, when corporate structure is a requirement for getting the intended tax advantages, possible expenses can arise if tax planning is disputed by taxation, resulting in brand damage. Various studies have been carried out on board attributes and tax planning among different sectors and different nations all this having mixed results. Therefore, this study sought to investigate the effect of board size on tax planning amongst firms listed at the Nairobi Securities Exchange, Kenya. The sample for the investigation included 65 Nairobi Securities Exchange listed companies listed between 2014 and 2021, and secondary panel data was collected from these companies using a census sampling technique. The study adopted descriptive and panel regression techniques of analysis which has some diagnostic tests. Ethical standards were adhered to in the study. Revelation from the survey showed that board size significantly in a manner that is positive with effect on tax planning of listed firms. The report consequently suggests that board size be decreased to improve tax planning effectiveness for Kenyan listed companies at the Nairobi Securities Exchange. This would enable the board of directors of the companies to facilitate decision-making within the shortest time frame possible
Knowledge Management Practices and Employee Performance of Sireet Out growers Empowerment and Producer Company Limited in Nandi County, Kenya
(The Strategic Journal of Business & Change Management, 2023) Rotich, J. J.; Mutuku, M. K
This study examined the influence of practices of knowledge management on employee performance at Sireet Outgrowers Empowerment and Producer Company Limited in Nandi County. The specific objectives included knowledge sharing, knowledge culture, knowledge IT tools and knowledge creation. The theory anchoring the study included knowledge based view and supported by the resource-based view theory. The study took an explanatory and cross-sectional survey designs. Census survey of all 60 employees formed the sample size and was involved in answering the structured questionnaire. A pilot test was done using 6 respondents who checked for validity and reliability of the research instrument. The researcher collected the data and conducted analysis that included descriptive, correlation and regression. The findings were presented in tables and prose form for deliberations. The study found that knowledge management practices of knowledge sharing, knowledge culture, knowledge IT tools and knowledge creation influenced the performance of employees at the of Sireet Outgrowers Empowerment & Producer Company Limited in Nandi County. Knowledge IT tools had the largest influence on employee performance, followed by knowledge creation, knowledge culture and knowledge sharing. The study concluded that knowledge management practices had positive and significant influence on employee performance. The study recommends that the management of Sireet Company in Nandi County to embrace knowledge management practices as it seeks to improve performance of its employees. The management should invest in training programs for creation and sharing of information, develop firm structures and practices that create, share and utilize knowledge for improvement in performance of employees. Other organizations seeking to improve performance of its employees in embrace practices under knowledge management. This can be done through formal and informal trainings, investing in technological systems and tools, embrace cultures and practices for creating, sharing and using knowledge
Effect of Employment on the Urban Youth Savings: A Case Study of Nairobi City County, Kenya
(Ijariie, 2024) Thuku, Thuku Jeremiah; Mugendi, Charles
Savings play a vital role as they act as backstop for capital formation and economic growth. A better saving behavioristhe basis of a sound economic and financial policy. Studies on savings have historically taken a central position in several economic research areas. Issues and problems related to savings among households and individuals have gained significant importance in microeconomic studies as savings stimulate larger investments and higher gross domestic product growth. Studies conducted in developing countries have shown that savings remain low particularly among the youth due to various factors such as high unemployment rates, limited access to financial services and high dependency rates among other factors. Low savings inhibit the availability of investment funds. This research study examined the effect of employment on the urban youth savings using Ordinary Least Squares estimation method. The goal was to get an understanding on the effect of employment factors on the uptake of savings by the youth. A cross-sectional research design was adopted where primary data was collected from the youth in Nairobi City County. Random sampling technique was used to select the respondents in the survey where self-administered questionnaires were administered to 400 urban youth. The study’s results demonstrated a showed a positive relationship between employment on the level of savings among the urban youth. Otherfactorssuch asrate ofreturn was found positively affect savings while factors such as age, number of dependants and education effected savings negatively. The study concluded that creating more employment opportunities for the youth through quality job and through revitalizing both the formal and informal sector and offering higher rate of returns on savings would be critical in mobilization of savings.
Public debt, private investments and unemployment rate in Kenya
(paperpublications, 2024-05-22) Mugo Benard; Mugendi, Charles Ndegwa
Abstract: The government of Kenya has put efforts to ensure that private investment in the country is boosted and hence reduce the unemployment rate. However, despite the government efforts in increasing the levels of private investment and lowering unemployment rates in the country, with increased government borrowing, private investment has continued to perform below expectations while the rate of unemployment continue to increase. While some researchers have attempted to assess the effect of public debt on private investment and unemployment the studies have found contradicting results. The major goal of this study was to ascertain how Kenya's public debt has affected both private investment and the unemployment. Assessing the impact of governmental debt on private investment and figuring out how it affects Kenya's unemployment rate were the specific objectives of the study. Longitudinal research approach was used where time series data from 2001 to 2021 was gathered. Secondary data was used. The World Bank, the Kenya National Bureau of Statistics, and the Central Bank of Kenya (CBK) provided the data for this report. To analyze the data, descriptive and inferential statistics were applied. The study established that domestic debt has a positive and significant relationship with private investment. However, the relationship between external debt and private investment was found to be negative but significant. On the contrary regarding the effect of public debt on unemployment rate, the study revealed that domestic debt has a negative but significant relationship with unemployment rate. External debt however was found to have a positive and significant relationship with unemployment rate. Based on the above findings the study concluded that public debt has a significant effect on private investment. For the second objective the study concluded that public debt has a significant effect on unemployment rate. Based on this, the government through its policy makers should come up with measures that would control the mount of borrowing by the government
Impact of Smallholder Banana Contract Farming on Farm Productivity and Income in Kenya
(Cogent Economics & Finance, 2024-05) Murigi, Michael; Ngui, Dianah; Ogada, Maurice Juma
Smallholder banana farmers in Kenya grapple with declining farm productivity and low market prices in a fragmented, broker-dominated market. To address these challenges, the Kenya National Banana Development Strategy advocates for the adoption of contract farming. This research utilizes Difference-in-Differences (DID) regression analysis to assess the impacts of smallholder participation in banana contract farming on farm productivity and income. The empirical results reveal positive impacts, emphasizing the potential of contract farming to enhance productivity, increase incomes for smallholder farmers, and invigorate rural economies. These findings provide valuable insights into the efficacy of contract farming as a strategy for addressing challenges in banana farming. To maximize this potential, the study recommends policy interventions, including increased government support, improvements in infrastructure and market accessibility, reinforced institutional backing, and the promotion of sustainable practices. These measures aim to secure enduring benefits for both farmers and food marketing firms in Kenya. IMPACT STATEMENT This study examines the effectiveness of contract farming in addressing the struggles of Kenyan smallholder banana farmers. The study finds that participating in contract farming leads to increased farm productivity and income for these farmers. These findings highlight the potential of contract farming to revitalize rural economies. To maximize these benefits, the research recommends policy changes, such as increased government support and improved infrastructure, to create a sustainable and mutually beneficial system for both farmers and food companies in Kenya.
Vulnerability of Smallholder Maize Production to Climate Variability in Selected Counties in Kenya
(IJSBA, 2022) Kabara, Millicent Akinyi; Onono – Okelo, Perez Ayieko; Etyang, Martin N.
Abstract The climate affects maize production. Unpredictable rainfall timing, frequency, duration, character, and distribution, particularly during the growing season; rising temperatures exceeding the levels appropriate for maize production; and high incidences of pests and diseases all contribute to declining yields and increased food insecurity. The goal of the study was to find out how much smallholder maize production in Kitui and Laikipia counties was affected by changes in the weather. A questionnaire was used to collect demographic and socioeconomic information from 397 smallholder maize producers. The National Oceanic and Atmospheric Administration provided monthly temperature data in degrees Celsius derived from a combination of Global Historical Climatology Network gridded version 4 and Climate Anomaly Monitoring System datasets. The Centennial Trends version 1.0 precipitation dataset provided monthly rainfall data in millimeters. The vulnerability index was created by combining the exposure, sensitivity, and adaptive capacity indices derived through factor analysis. Drought, famine, climatic changes, crop failure, and purchasing maize increased the vulnerability of smallholder maize production, whereas less frequent water fetching, increased maize yield, access to extension, input subsidies, fertilizer expenditure, and the number of social groups decreased vulnerability. According to the study, smallholder maize production in semi-arid lowland areas was more vulnerable to climate variability than in highland areas. The findings suggest that the national and county governments should monitor vulnerability indicators at the national, county, sub-county, and ward levels in order to inform the design and implementation of appropriate vulnerability-reduction programs.
Effect of Youth Empowerment in Unemployment Intervention Programmes on Youth Employability in Nakuru County, Kenya
(Global Press Hub, 2022-02) Omukhango, Mary; Etyang, Martin N.
This study sought to assess the effect of youth empowerment in unemployment intervention programmes on youth employability Nakuru County, Kenya. The study targeted 2 main youth intervention Programmes in Nakuru Town East Sub County; which are the Youth Enterprise Development Fund (YEDF) and Uwezo fund. The study used primary data collected through wellstructured questionnaires. There were two questionnaire sets, for the youth and the other was responded to by the County directors and Project implementers/Coordinators in Nakuru County. Regression analysis was employed to determine the statistical relationship between youth empowerment in unemployment intervention programmes and youth employability. The regression results show that the frequency of funds access and youth employability are positively and significantly related (β=0.373, p=0.000). The results also indicated that training and youth employability are significant and with a positive relationship (β= 0.317, p=0.011). Further, results revealed that years in employment (experience) and youth employability were positively related (β =0.441, p=0.000. The results indicated that holding the number of entrepreneurial trainings, Z2 and the years the youth have been in self-employment, Z3 constant then a unit increase in the number of times the youth have accessed the funds, Z1 will lead to a 0.373 increase in Youth employability. Likewise if Z1 and Z3 are held constant then a unit increase in entrepreneurial trainings for the youth would lead to a 0.317 increase in youth employability. A unit increase in the years the youth have been in self-employment would lead to a 0.441 increase Youth employability if Z1 and Z2 are held constant. In order to enhance youth empowerment in unemployment intervention programmes, the government should endeavor to increase the youth beneficiaries’ entrepreneurship trainings and put more emphasis on the importance of repayment and refinancing in order to achieve positive growth in their businesses.
Public debt and the financial performance of companies listed on the Nairobi securities exchange
(IJSSER, 2024-02) Otieno, A. Anne; Muthoga, Samuel
The government borrows to fill the budget deficit. The effects of borrowing may be positive, negative, or zero. This study aimed to examine the effect of public debt on the companies listed on the Nairobi Securities Exchange and to ascertain how factors affecting public debt and the financial success of companies listed on the NSE are related. The study used secondary data from the Central Bank of Kenya and the Kenya National Bureau of Statistics. The association between the variables was determined using Ordinary Least Squares. The study found that public debt has a mild negative effect on the financial health of companies listed on the NSE. Limitations of the study included challenges in accessing data and the time taken in data collection is quite long. The recommendations from this study are that government should reduce the dependency on loans, policy makers can develop artificial intelligence tools for data collection, and consider sustainable borrowing
Institutional Factors Influencing the Effective Implementation of Youth Unemployment Intervention Programmes in Nakuru County, Kenya
(Global Press Hub, 2022) Omukhango, Mary; Etyang, Martin N.
Globally, youth population is growing and the challenges the youth face are growing in tandem over the years. However, the present job market has proved difficult and not easy to penetrate among the youths due to lack of job openings among many employers. According to ILO [1] report youth unemployment rate was 11.8 percent in both 2018 and 2019, with more than 59 million youth worldwide jobless in both years. Many more were struggling with non-profitable businesses and deplorable working conditions. The economic future foundation of a country’s population is the youth. The security of a nation and the pace of development are defined by the energy, innovation, orientation and character of its youth [2-6]. However globally over the years, the Youth challenges have been growing, National Youth Policy, (2007). In 2007, Kenyans 30 years of age and below constituted about 75 percent of the total population. This formed the largest source of human resources. Despite this, they were still on the sidelines of the nation's affairs and had been left out from structuring, planning and actualizing projects and policies that influenced their livelihoods, National Youth Policy, (2007). Even though Kenyan's population was growing by one million people annually in the period between 1979 and 2009, its population growth rate had dropped from 3.8 percent in 1979, 3.3 in 1989 and to 2.9 in 2009. The high population growth rate of the previous years brought about the present youth bulge UNDP report, (2013). According to the Kenyan Population Census, 2019 results the current youth Population (aged between 18 and 35 years) is 14,539,383 which includes 6,992,606, Male youth, 7,546,180 females and 597 Intersex youth, Kenya Population and Housing Census, Volume III [7]. Over the years, Kenya has experimented with different youth employment policies and intervention programmes. Between 1963 and 2013, 17 policy measures and programmes were implemented nationally at one point or another, with job creation as the main goal. Regardless of this huge number of unemployment intervention programmes, there was some continuity that is 10 of the 17 measures was a constant in the entire period’s menu of policy UNDP, (2013). In Kenya, like in the rest of the world, the government has made efforts to deal with youth problems of unemployment and youth empowerment. The Government of Kenya (GOK) has made efforts to start youth development programmes via policy documents like Sessional Paper Number 4 of 2005, Sessional Paper Number 2 of 1992 on Jua Kali Enterprises and Small Scale businesses, Development Plan (1997-2001), the Poverty Eradication Plan (1999- 2015) and introduction of the Youth Enterprise Development Funds in 2005 among other affirmative funds, Youth Enterprise Development Fund Status report, (2009), revamping of Youth polytechnics in 2007, ‘Kazi Kwa Vijana’ (KKV) world bank initiative launched in 2009 that targeted employment for 200,000 to 300,000 youths each year in urban and rural areas in projects that entail government funded works and are labour-intensive Republic of Kenya, (2010) and the Kenya Youth Empowerment Programme (KYEP) launched in July 2010 aimed at strengthening the KKV by provision of youth training and internships and enhancement of the capacities of youth officers UNDP, (2013). The UWEZO fund scheme of 2013, the National Youth Service (NYS) Youth empowerment programme, 2015 and the Kenya Youth Employment and Opportunities Project (KYEOP), 2018 are among the latest intervention programmes toward curbing youth unemployment. However, these interventions seem to have had minimal impact on the state of youth unemployment. This study used Youth Enterprise Development Fund (YEDF) and Uwezo fund which have received the largest youth funding and which were proposed for a merger to form the Biashara Fund by the treasury in the financial year in the 2018/2019 budget Budget of Kenya, (2019).
Role of Customer Orientation on Customer Loyalty in the Hotel Industry in Kenya
(ijbm, 2017) Kangu, Maureen; Wanjau, Kenneth Lawrence; Kosimbei, George; Arasa, Robert
The purpose of the study was to establish the role of customer orientation on customer loyalty in the hotel industry in Kenya. The study used the non-experimental cross-sectional survey design. A total of 147 hotels listed in the Kenya Association of Hotel Keepers and Caterers (KAHC) guide 2014 were studied. A census sampling technique was used. The respondents comprised of 147 customer relationship managers or equivalent. Semi structured questionnaires were used to collect primary data. Qualitative and quantitative techniques were used to analyze the data. Qualitative and quantitative techniques were used to analyse the data. Quantitative techniques were used to analyze the data. The study findings showed that customer orientation has contributed to customer loyalty in the hotel industry in Kenya. The study concludes that employees were easily accessible, empowered to take initiative and their knowledge of hotel procedures was recommendable. Stakeholders in the hospitality industry should be aware that a loyal customer does not only engage in repeat patronage but also provides positive word-of-mouth to other people, thereby increasing the revenue of the hotel. The implication of this, therefore, is that a customer’s change of patronage would have an impact in the long-term revenue of the hotel. Delivering quality service to customers is a must for success and survival in today’s competitive hospitality industry
Technology Infrastructure: a Customer Relationship Management Dimension in Maintaining Customer Loyalty
(ijecm, 2017) Kangu, Maureen; Wanjau, Kenneth Lawrence; Kosimbei, George; Arasa, Robert
With intense competition among hotels, the study sought to assess the influence of technology infrastructure on customer loyalty as a strategy in Customer Relationship Management (CRM) in the hotel industry in Kenya. The study used the non-experimental cross-sectional survey design. A total of 147 hotels listed in the Kenya Association of Hotel Keepers and Caterers (KAHC) guide 2014 were studied. A census sampling technique was used. The respondents comprised of 147 customer relationship managers or equivalent. Semi structured questionnaires were used to collect primary data. Qualitative and quantitative techniques were used to analyze the data. The findings indicated that the hotel industry had effective technology infrastructure and that technology facilities were a key determinant of customer loyalty. The study concluded that technology infrastructure in the hotel sub sector in Kenya were key determinants to customer loyalty. The study recommends that the hotel management ensures that the hotels are upgraded with the technological changes taking place in the whole world; the management conducts a market survey of the technological facilities in use in other hotels so as to minimize high competition from the competition.
Estimating the Cost of HIV Services for Key Populations Provided by the LINKAGES Program in Kenya and Malawi
(BMC Health Services Research, 2023) Opuni, Marjorie; Sanchez‑Morales, Jorge Eduardo; Figueroa, Jose Luis; Salas‑Ortiz, Andrea; Banda, Louis Masankha; Olawo, Alice; Munthali, Spy; Korir, Julius; DiCarlo, Meghan; Bautista‑Arredondo, Sergio
Background Data remain scarce on the costs of HIV services for key populations (KPs). The objective of this study was to bridge this gap in the literature by estimating the unit costs of HIV services delivered to KPs in the LINKAGES program in Kenya and Malawi. We estimated the mean total unit costs of seven clinical services: post-exposure prophylaxis (PEP), pre-exposure prophylaxis (PrEP), HIV testing services (HTS), antiretroviral therapy (ART), sexually transmitted infection (STI) services, sexual and reproductive health (SRH) services, and management of sexual vio‑ lence (MSV). These costs take into account the costs of non-clinical services delivered alongside clinical services and the pre-service and above-service program management integral to the LINKAGES program. Methods Data were collected at all implementation levels of the LINKAGES program including 30 drop-in-centers (DICs) in Kenya and 15 in Malawi. This study was conducted from the provider’s perspective. We estimated eco‑ nomic costs for FY 2019 and cost estimates include start-up costs. Start-up and capital costs were annualized using a discount rate of 3%. We used a combination of top-down and bottom-up costing approaches. Top-down methods were used to estimate the costs of headquarters, country ofces, and implementing partners. Bottom-up microcosting methods were used to measure the quantities and prices of inputs used to produce services in DICs. Volumeweighted mean unit costs were calculated for each clinical service. Costs are presented in 2019 United States dollars (US$). Results The mean total unit costs per service ranged from US$18 (95% CI: 16, 21) for STI services to US$635 (95% CI: 484, 785) for PrEP in Kenya and from US$41 (95% CI: 37, 44) for STI services to US$1,240 (95% CI 1156, 1324) for MSV in Malawi. Clinical costs accounted for between 21 and 59% of total mean unit costs in Kenya, and between 25 and 38% in Malawi. Indirect costs—including start-up activities, the costs of KP interventions implemented alongside clinical services, and program management and data monitoring—made up the remaining costs incurred. Conclusions A better understanding of the cost of HIV services is highly relevant for budgeting and planning purposes and for optimizing HIV services. When considering all service delivery costs of a comprehensive HIV service package for KPs, costs of services can be signifcantly higher than when considering direct clinical service costs alone. These estimates can inform investment cases, strategic plans and other budgeting exercises.
Government Infrastructure Spending and Economic Growth in Kenya: An Autoregressive Distributed Lag Model Approach
(IPRJB, 2023) Susan K., Matheka; Etyang, Martin
Purpose: Since independence, the Government of Kenya has pursued many objectives, one being economic growth. Over the previous few many years, government expenditure has been developing faster than the GDP growth. Infrastructure, one of the components of public spending, has also experienced tremendous growth in government spending and development, which has not been directly reflected in the GDP growth rate. Following such situation, it calls for analyzing the impact that government infrastructure expenditure has on economic growth in Kenya with a focal point on three sectors beneath infrastructure that the public sector spends closely on; transport, energy and fuel, and Information Communication and Technology (ICT). The study's overall objective is to find out the effects of government spending on the three sampled sectors of government infrastructure on economic growth in Kenya and then draw policy implications from the findings. The specific objectives were; to investigate the effect of transport infrastructure expenditure on economic growth in Kenya, to examine the effect of energy & fuel infrastructure expenditure on economic growth in Kenya, and to examine the effect of ICT infrastructure expenditure on economic growth in Kenya. Further, Bounds F-test to cointegration as well as the Autoregressive Distributed Lag Model (ARDL) were used to realize the objectives. Methodology: The data was collected covered 1990 – 2020 for the three sectors of infrastructure: transport, energy & fuel, and ICT. Several tests on the time series data were carried out on the secondary data obtained, after which (ARDL) was employed in analysing the data. Findings: The outcome showed that government expenditure on transport, energy, fuel, and ICT infrastructure sectors affected economic growth either in the short or the long run. Based on the ECM regression findings, the long-run regression outcome revealed that expenditure on energy and fuel promotes economic growth. On the contrast, the findings showed that government expenditure on transport and ICT sectors exhibited a negative effect on GDP growth rate. Public expenditure on transport and ICT infrastructure sectors positively impacted economic growth in the short term, while the energy and fuel sectors exhibited a negative impact on GDP. Other control variables inclusive of trade openness and FDI showed either a positive or negative effect on economic growth either in long or short run. Inflation, particularly, exhibited a negative effect on GDP in the long run, in addition to within the short run. Unique Contribution to Theory, Practice and Policy: Based on the empirical findings, this study validates the Keynesian theory which stipulates that public expenditure positively contributes to economic growth. Based on this theory, public expenditure is an exogenous factor capable of being applied as a policy instrument in promoting economic growth.
Firm’s Characteristics and Productivity in Kenya
(American Research Institute for Policy Development, 2015) Mugendi, Charles Ndegwa; Gachanja, Paul Mwangi; Nganga, Tabitha Kiriti
There has been different theoretical argument on the link of different firm’s characteristics on productivity. According to various literature size of the firm, firm’s ownership characteristics, skilled labour force and expenditure on research and development are some of the firm’s characteristics that affect productivity. However different empirical studies conducted in both developing and developed countries have produced contradictory results. This study therefore examines how different firm’s productivity has affected various firms’ productivity in Kenya. To achieve this objective primary data was collected from various firms. Thereafter analysis was done using Feasible Generalized Least Square method (FGLS). According to the results foreign firms were more productive in most of the sectors in Kenya. Other factor that affected productivity included: research and development, gender diversity, skills and firms size. Ethnicity was found to have no impact on productivity.
Does the Inverse Farm Size Productivity Hypothesis Hold for Perennial Monocrop Systems in Developing Countries? Evidence from Kenya
(arjare, 2021) Ateka, Josiah; Onono-Okelo, Perez Ayieko; Etyang, Martin
The inverse farm size and productivity relationship (IR) is a recurring theme in the literature. However, most previous studies were undertaken within a setting of mixed cropping systems. In this article, we investigate the effect of farm size on productivity within the context of a perennial mono-cropping system, acute competition for farmland, frequent subdivision of farms and declining yields. We apply household survey data of smallholder tea farms in western Kenya and consider both technical efficiency (TE) and the yield per hectare as indicators of productivity. The findings show that the effect of farm size on productivity is nonlinear, with TE initially declining and then rising with farm size. The findings also demonstrate that the farm size and productivity relationship is important for perennial monocrops and that the use of robust measures of productivity is important for the IR. The findings have important implications for agricultural policy in developing countries

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