ABSTRACT In developing countries, attainment of economic growth depends upon physical capital, in addition to other factors of production. Growth in physical capital entails investment in capital goods which help in the production of other goods and services. The concern in this study was to investigate the determinants of investment in the informal carpentry sub-sector in Kitui town in Eastern Kenya. The data used was obtained from the entrepreneurs owning carpentry workshops in Kitui town....
ABSTRACT Persistent current account deficit is a chronic problem in many developing countries including Kenya. In an attempt to understand disequilibria dynamics in Kenya, this study sought to investigate the effect of real exchange on current account balance and additionally investigate whether the rate of import growth in Kenya is consistent to balanced economic growth as stipulated in Thirlwall law. The study is based on two main theories, the neoclassical elasticity approach and balance ...
ABSTRACT This study sought to provide empirical evidence on technical efficiency levels and trend of the Kenya Agro-processing industry. The major problem of the agro-processing industry is that it has been inefficient in terms of value addition to the agricultural produce and Kenya is known to be a net exporter of raw agricultural produce instead of high-quality value-added products. This study sought to determine the efficiency estimates of the agro-processing industry and analyzed the tre...
ABSTRACT Good health plays an important role in boosting economic growth, poverty reduction and the realization of social goals. However, the Survey of Health Care Utilisation and Expenditure of 2013 found that the high cost of health care was one of the major reason cited by households for not seeking health care. Moreover, out-ofpocket (OOP) payment for healthcare is the main source of health care financing in Kenya. OOP spending on outpatient care and inpatient services accounted for appr...
ABSTRACT The need for infrastructure development in Kenya was initiated in the early years of economic planning. For instance, the Sessional Paper No. 10 of 1965 among other strategic objectives provided a premise for infrastructure development to fuel rapid industrialization and make Kenya a market economy. Emphases have since been made in the subsequent economic development plans in 1970s, National Development Plans in 1980s, the Economic Recovery Strategy for Wealth and Employment creati...
ABSTRACT In light of the regional integration efforts, this study sought to find out the impact of regional trade integration on economic growth of East Africa Community. One of the provisions to increase the EAC intra-trade is Article 75 of the Treaty and the Customs Union (CU) Protocol whose implementation would increase the value and volume of trade within the EAC. GDP growth rate analysis shows a major disconnect between deepening integration and achievement of growth within a common mar...
ABSTRACT The importance of bilateral relations to any country is to offer the country the chance to access resources that are not locally available. The bilateral relations between China and Kenya have been developing and evolving since Kenya‟s independence. This study sought to examine the effect of Kenya‟s bilateral relations with China on economic growth of Kenya. The objectives of the study were to assess the effect of China‟s Loans, FDI and AID on Kenya‟s economic growth. The st...
ABSTRACT FDI has grown significantly over time. According to the World Bank Economic report 2014, foreign direct investment in Kenya has increased from as low as 2 million US Dollars in the early 1990’s to 944.3 million US Dollars in 2014. A review of literature reveals that, the relationship between FDI and macroeconomic variables is contradictory. Mixed results have been evident with some results indicating that macro-economic variables like interest rate have a positive impact on foreign...
ABSTRACT The study aimed at establishing the effects of regional financial integration on economic growth and intra-regional trade in East African Community (EAC) Countries. The motivation was based on the conflicting views on the effect of regional financial integration on economic growth and intraregional trade. In order to achieve the objectives of the study, both quantitative and qualitative data were used. Data for the period 2000 to 2009 for Kenya, Uganda, Tanzania and Rwanda were emplo...
ABSTRACT A great proportion of the population living in urban areas of Kenya especially in Nairobi City County reside within the informal settlements. These informal settlements are prone to water related challenges such as failure to access piped and safe water. It is this situation that has continued to attract attention of governmental and non-governmental organizations which have kept on supporting water related projects to solve such menace. Available information revealed that over 50 pe...
ABSTRACT Kenya seeks to meet the Millennium Development Goals, under the guidance of The Kenya Vision 2030. The leading challenge to this course remains the soaring debt servicing obligations, capturing a significant portion of the national budget. Kenya has been borrowing externally at higher rates and continually expanding the debt ceiling. The government will therefore in future spend a significant portion of its revenue repaying the debts at the cost of important local investment. The gov...
ABSTRACT Macro-economic theory suggests that there exists a causal relationship that runs from the Budget Deficit to Current account deficit, a concept referred to as the Twin Deficits Hypothesis. Further analysis has pointed towards an extension of this relationship running up to the Financial Account through the Savings-Investment Imbalance, a concept known as the Triplet Deficits Hypothesis. Presence of the triplet deficits implies that all the accounts are in deficit making internal balan...
ABSTRACT Education is regarded as both type of consumption and investment .People want schools sometimes, as they want TV sets- a status symbol. They want their children to learn to read because they will enjoy life more a result. These are just some of the consumptions benefits of education. Future levels of production are not developed simply on labour and physical capital- but on technical knowledge and the skills of the labour force and these are provided by education (Maureen Woodhall, 1...
ABSTRACT The Kenya government recognizes education as a critical tool in transforming the society. It spends a lot of funds on education in relation to the national budget. However, despite the continued increase in government investment in secondary education, education resources are never adequate to match the ever increasing enrolment rates. In connection to this, several public secondary schools have mobilized their scarce resources to establish IGAs in order to supplement the government ...
ABSTRACT The effect of government size on economic growth has given rise to conflicting views among economists. Some view a large government size as harmful to economic growth due to inefficiencies inherent in government. The other group of economists argues that a larger size of government is likely to enhance economic growth. Kenya’s public expenditure has been experiencing rapid growth since 1963, while GDP growth over the same period has not followed the same path. The main objective of...