Public expenditure and health status: a case study of Kenya

Abstract

This Research Paper investigates the impact of public expenditure and health status in Kenya over the period 1972-2000.The study estimates an aggregate and disaggregates health production function. The variables used are national income, education per capita, health expenditure per capita, access to safe water, lite expectancy, Infant mortality rate and under-five mortality rate. The study attributes low health status to insufficient public spending by the government of Kenya.The prime objective was to statistically test the nature and the significance of the relationship between health status and public expenditure. The findings of the study indicate a strong contribution to health status by public health inputs such as access to safe water, health and education. The influence of services that are dependent on consumer demand is more difficult to identify both for preventive services, such as immunization and for curative medical care. Results findings show that several policy recommendation are established. With this regards the study recommends resources must be channeled towards primary and preventive health care. It recommends the government should stop directing more resources to defense because it has no direct effect on social welfare. The government should encourage the role of the local authorities in education, health and education sector should be clearly articulated.