Question #1
Kenya is a developing nation in East Africa. After gaining independence in 1963, Kenya’s economy was largely based on agriculture, which was not enough to fulfill the needs of the growing population (Lenzin, 2012). Just like many developing nations, Kenya had to rely on financial support from international lending institutions such as the World Bank and IMF to fund socioeconomic development in the country.
According to Kingston et al., (2011) it is hard to tell whether funding from international lending institutions have had any positive impacts in Kenya given the state of Kenya’s economy. Kenya is servicing a huge foreign debt, and the debt is continually growing. Kenya’s debt crossed the 50% of the GDP mark in 2013 to a total of Kenya shillings 2.11 trillion at the end of December 2013 (Irungu, 2014). Eventually, Kenya like most developed nations, have implemented policies to control inflation and to generate foreign exchange to help them pay off the massive debts, which has resulted in massive unemployment, poverty and economic polarization (Kingston et al., 2011).
Delegate your assignment to our experts and they will do the rest.
The funding from the IMF and World Bank have negative effects on the development in Kenya in that they have created a dependency on foreign help. Additionally, the funding is accompanied by policies that control the use of the money. World Bank’s adjustment lending to Kenya include: sectoral structural adjustment loans and structural adjustment credits (Githua, 2010). SAPs in Kenya are associated with macroeconomic conditions, for instance, the World Bank required Kenya to devalue its currency against the dollar, reduce domestic credit expansion and reduce budget deficits. Eventually, in an effort to balance the national budget, the Kenyan government has implemented deep cuts in programs like education, health and social care (Githua, 2010). In conclusion, the IMF and World Bank funding have put the Kenyan government in an awkward position where it has to fulfill the policies and debt obligations to these institutions, instead of engaging in socioeconomic and political development.
Question # 2
A healthy population has strengthened Kenya’s economy. Over the years, Kenya has improved and expanded its health facilities (Mohajan, 2014). The Kenyan government dedicates at least 5% of its GDP on health sector, and it has paid off through improved economy.
The healthy population has the following benefits in the economy: Reduced expenditure on preventable diseases, increased participation in development activities, increased productivity and poverty reduction. According to Mohajan (2014) diseases such as TB, Malaria and HIV have been the leading causes of morbidity and mortality in Kenya. However, through improved health system, Kenyan citizens have been equipped with ways of preventing various conditions such that the government is now spending less money on treating preventable diseases.
Secondly, improved health has led to increased participation in development activities. Many Kenyan citizens are now engaging in economic activities unlike before, because they have access to health care services for managing their conditions. In the past, conditions such as HIV and Tuberculosis were life threatening due to inaccessibility of medical services, today, patients with such conditions can still take part in development activities (Mohajan, 2014).
Thirdly, improved health has led to increased productivity. Cases of absenteeism, inefficiency and low productivity are avoided when dealing with a healthier population. Healthy individuals have the capability to work harder to achieve desirable outcomes in comparison to individuals facing health challenges.
Lastly, healthy citizens have played an important role in poverty reduction in Kenya. Currently, about 45% of Kenyans are living below the poverty line (Githua, 2010), this is still a high number, but it has been shrinking for the past two decades because many people are now taking part in development activities due to improved health.
Question # 3
Kenya’s health care system is characterized by a series of challenges such as lack of health insurance, lack of staff and facilities (Chuma & Okungu, 2010). However, Kenyan leaders are solving some of those issues through better budgetary allocation. Additionally, international financial aid has also played an important role in the improvement of the health care system.
According to Wamai (2009) Kenya adopted a Sector Wide Approach (SWAp) to bring together various stakeholders in the government, nonprofit and international funding institutions to address the critical issues in health care. Between 2007-2012, a group of 17 leading donors to Kenya and the international financial institutions came up with a Joint Assistance Stragety made up of macro-economic and structural frameworks to improve the health care system in Kenya. The strategy was backed by financial aid to implement the framework. For example, in 2006/2007 fiscal year, the joint program was expected to raise US$92 million to support health care services across the country (Wamai, 2009). Also, in 2006 14.8% of Kenya’s health funding came from donor sources (Wamai, 2009).
It is worth noting that the bulk of international funding to the Kenyan health sector is allocated to specific interventions rather than to the Ministry of Health. Apart from the assistance from financial agencies, developed nations have funded different health programs in Kenya. An example is the US President’s Emergency Program for AIDs Relief (PEPFAR) fund, which is channeled directly to the implementing agency. In 2009, the US spent $529.1 million in PEPFAR (Wamai, 2009).
To sum up, Kenya remains one of the most promising nations in East Africa. However, its over reliance on donor funds has affected its economic growth. Every year, Kenya relies on foreign funding and donation to supplement its budget, and to support the health care system. Though Kenya’s reliance on foreign aid will not end any time soon, it needs to put in place an effective structural framework to put the aid into good use.
References
Githua, D. W. (2013). The impact of International Monetary Fund (IMF) and the World Bank structural adjustment programmes in developing countries, Case study of Kenya (Doctoral dissertation).
Gurtner, B. (2010). The financial and economic crisis and developing countries. International Development Policy| Revue internationale de politique de développement , (1), 189-213.
Irungu, G. (2014). IMF, World Bank raise the red flag over Kenya’s debt. Business Daily . Retrieved from: http://www.businessdailyafrica.com/IMF-and-World-Bank-raise- the-red-flag-over-Kenya-debt/539546-2252232-iomhytz/index.html
Kingston, C., Irikana, G. J., Dienye, V. U., Kingston, D., & Gogo, K. (2011). The Impacts of the World Bank and IMF Structural Adjustment Programmes on Africa: The Case Study of Cote D'Ivoire, Senegal, Uganda, and Zimbabwe. Sacha Journal of Policy and Strategic Studies , 1 (2), 110-130.
Lenzin, N. (2012) The Influence of the IMF and the World Bank: Structural Adjustment in Tanzania and Kenya 1979-1990. Academia.edu.
Mohajan, H. K. (2014). Improvement of Health Sector in Kenya. American Journal of Public Health Research , 2 (4), 159-169.
Wamai, R. G. (2009). The Kenya Health System—Analysis of the situation and enduring challenges. JMAJ , 52 (2), 134-140.
