Suchergebnisse

In Kenya very little research has been carried out on the effect of the size of the informal sector on tax performance. Failure to raise adequate tax revenue from the increasing informal sector implies the government should either resort to unpopular tax rates increases or public debt. Each of these approaches has ramification on the economy. To come with relevant policies, it is important to understand the link between size of the informal sector and tax revenue performance. This paper estimates the effect of the size of the informal sector on tax revenue performance in Kenya for the period 1970-2018. On testing for stationarity, the study establishes a mixture of I (0) and I (1) variables thus suggesting the use of Autoregressive Distributed Lag model. The finding indicates that the size of the informal sector negatively influences tax revenue in Kenya. This implies that the informal sector's output may be increasing but little tax is generated from it. The finding also has implications for the conduct of the Kenya Revenue Authority (KRA). To reduce the size of the informal sector, KRA should increase surveillance to identify economic activities that fall within the tax bracket and tap tax revenue from them.

Health inputs are critical in attaining a healthy nation and improving health outcomes. Kenya, like other developing countries, grapples with limited health expenditures and poor population health indicators. Specifically, Kenya is yet to achieve the allocation of least 15% of the government's annual budget to improve the health sector as enshrined in the Abuja Declaration. Though there is an improvement with regards to infant mortality rate decreasing from 96.6 per 1, 000 live birth in 1970 to 30.6 per 1, 000 live birth in 2018. This indicator of population health outcome is currently far below the Sustainable Development Goals (SDGs) target of reducing the under five mortality rate to as low as 12 deaths per 1,000 live births by 2030. The literature suggests that increase in government's budgetary allocation to the health sector can improve country's health outcomes. Evidence on the impact of health expenditures on health outcomes is mixed and limited in developing countries. This study aims to analyze the impact of public health expenditures on health outcomes, among other control variables in Kenya. The study uses time series data from 1970 to 2018. The variables are found to be integrated of different orders suggesting the choice of Autoregressive Distributed Lag (ARDL) model. ARDL provides a useful link between long run equilibrium relationships and short run disequilibrium dynamics is estimated. The ARDL bounds test suggests presence of cointegration thus leading to the estimation of Error Correction Model (ECM). The findings suggest that improvements in public health expenditures enhance health outcomes in Kenya. The control variablesthat are found to be important determinants of infant mortality rate in Kenya include the national income and number of hospital beds per 100, 000. The study recommends that Kenyan government should increase annual budgetary allocation to health sector. Such increase is likely to lead to investments in physical and human capital in the health sector thus translating to improved health outcomes in Kenya.

Health is important for sustainable economic performance of a country. This study seeks to investigate the effectiveness of public health spending on health outcomes. This is obtained by estimating a health production function for Kenya. In the study, infant mortality rate is used to measure health outcomes. The study uses time series data running from 1984 to 2015. The data is obtained from World Bank database and Kenya National Bureau of Statistics Economic Surveys. Error Correction Model (ECM) is adopted due to presence of cointegration. The results show that public expenditure on average influence health outcomes in Kenya. These results therefore provide evidence to support that increase in public expenditure improves health outcomes. The other factor that is found to be important determinant of health outcomes in Kenya is child immunization. The major policy implication of this study is that Kenyan government should increase budgetary allocation to health sector. In addition, government of Kenya should allocate more resources to child immunization.