Lending Institutions, Health Care and Human Capital: Kenya Case Analysis

Free «Lending Institutions, Health Care and Human Capital: Kenya Case Analysis» Essay Sample

Question 1: The Role of International Funds in Kenya

For this paper, the developing country under study is Kenya. It is ascertained that the country has an access to international forms of lending from such institutions as World Bank and the International Monetary Fund for purposes of investing in intensive projects that are meant to catapult its social and economic status. For instance, in regards to social development, the World Bank has contributed grants amounting to more than $300,000 for purposes of supporting the imminent Kenyan Sector with an aim of catapulting standards related to management of education resources as well as learning objectives.

In the recent times, the European Union, through the International Monetary Fund, embarked on availing more funds to the country for the purpose of helping with the common decongestion of traffic. The project is meant to assist with expanding the Kenyan road network for purposes of allowing efficient use of fuel-energy that is mostly wasted in traffic jams.


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The Kenyan administration has also secured funds from the World Bank amounting to over $950,000 in a 2-year funding program (Government of Canada, 2013). The purpose of this project is to help the administration to manage the extractive industry in a more transparent and responsible manner in order to allow for the maximization of social and economic developments that would go ahead to benefit the people immensely. Significantly, this project would be inclined towards developing both knowledge and skills in fundamental government bodies that include the Ministry of Energy and Petroleum and other non-governmental organizations. It is focused on enabling the aforementioned organizations to better comprehend distinctive policy alternatives and more efficiently, manage the sector for purposes of benefiting the entire Kenyan community (Government of Canada, 2013).

In regards to political prowess, the developing country has managed to secure distinctive international funds from such institutions as the United Nations Development Programme amounting to over $2.9M for a two-year sponsorship program (Government of Canada, 2013). The fundamental focus of this project is to help the country in its endeavors of attaining credible and fair elections in future electoral processes. It is focused to be executed for purposes of catapulting the current levels of electoral processes and operations, cementing the capacities of the electoral commissions and also, to help increase the level of participation of the Kenyan electors in the process as a whole. Thus, democratic governance is meant to benefit the entire Kenyan population through electing the developed-minded leaders.

Question 2: The Role of Healthy Population in Kenyan Economy

It is ascertained that over the past decades, Kenya has grown into becoming the most progressive economic hub within the East Africa region. However, most of its population has minimal or no access to quality health care services that are a fundamental component of enhancing their productivity levels and as a result affecting its economic growth intensively. Due to the poor health condition diferent cases can be noted (Government of Canada, 2013).

First, the country’s main economic activity is focused on agricultural processes where exports are concentrated along such commodities as tea and coffee as well as horticultural products. However, with the low access to health care services, it is ascertained that the health human capital of the country is negatively affected. In regards to labor force, research has established that health directly affects worker earnings and their immediate productivity levels (Bhargava, Lau & Murray, 2001). Second, the menace of diseases in Kenya has outgrown cost to individuals and households and thus, spilled over to affecting the larger economy as whole. For Kenyan firms, diseases have direct consequences to both productivity and profitability levels hence reducing the competitiveness of the firms both locally and on international platforms. Due to the ever-rising diseases conditions, the Kenyan economy continues to suffer from multiple cases of higher rates of employee turnover as well as absenteeism for that matter. For instance, a research survey on HIV/AIDS conducted on Sub-African firms postulated that the activity of replacing staff with skilled experiences was a costly affair (Biggs & Shah, 1997). Third, in Kenya, the stagnant health care conditions affect the growth of its demography that has a direct effect in relation to boosting the country’s economy. The rather stagnant growth of the Kenyan demography over the past few years is a clear indication that it cannot afford to provide enough markets for its local production due to poor number of population. Fourth, the poor levels of the Kenyan health care service have also resulted in poor models of savings and investments, which are indeed two fundamental components of the economy growth (Bloom & Canning, 2003). It has been attributed to most of the population’s income being channeled to funding costly health care services as well as in accessing quality medical care on international platforms like India and the United Kingdom (Bhargava, Lau & Murray, 2001).

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Question 3: Leadership Role in Promoting Health Care System in Kenya

The current Kenyan Constitution provides for both a central and local government model of leadership meaning that such duties as provision of maternal care, child welfare and other fundamental medical care have devolved to the local government. Therefore, the purpose of the national government is to source for foreign aid that is later distributed to these local governments in respect to their needs and hardship indexes.

The current administration has been on the forefront to promote the degree for which the citizens, especially in the remote areas, can access the basket of the country’s agricultural commodities. Most of the foreign aids that are accessed are used to fund such important activities as maternal healthcare. For instance, the new administration, in efforts to decrease its morbidity rates, partnered with international sponsors to avail free maternal care to all pregnant women across the country. The research indicates that it has helped to improve the rate at which infants are born and thereby increased the country’s demographics level.

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