91 research outputs found
Pension funds in sub-Saharan Africa
No full textThe population structure the world over is going through a demographic shift, and the elderly proportion is projected to increase with population growth. This change is a matter of concern for sub-Saharan African (SSA) countries, where the majority of the people are young and the rates of both population growth and unemployment are high. A good pension system provides elderly assistance and is a source of savings for long-term investment. The pension systems in SSA, however, are characterized by low coverage and participation rates, and they therefore fail to guarantee a basic income to the elderly. The contributory nature of most private pension schemes is also not favourable in SSA due to high levels of informality and low levels of income, which limit contributions, and because such schemes do not promote risk-sharing and redistribution. Pension reforms in regions such as Latin America have not been overly successful, and this offers lessons for SSA countries. The pension sector in SSA is characterized by low assets under management, investment in short-term assets (mainly government securities), low returns on investment, and restrictive regulatory frameworks. The way out for SSA is to move towards a targeted universal pension system financed through public resources; however, the shift to such a system should be gradual so as not to lead to fiscal strain
Discussion Paper No. 357 of 2024 on Experience of Kenyan Firms in Financing Investments: Issues and Policy Options
No full textThe Kenya Vision 2030 envisages a vibrant and globally competitive financial sector driving high levels of savings and financing investment needs. Despite reforms in the financial sector in Kenya, studies show that access to finance by firms is a major obstacle. This study examined the financing sources driving investments in firms; the relationship between financing sources and diverse types of investments; and the effect of firm size and sector on investment financing. This was important in unearthing the policy issues firms face to invigorate the impetus to increase investment levels in the country. The reduced form of investment equations was adopted, and the World Bank Enterprise Survey data 2018 was used for the analysis. The results show that overall, equity and bank loan are important sources used by firms for investment financing. Also, equity and bank loans are more likely to be used to finance new or used machinery, vehicles, and equipment. On investments in land and buildings, firms are less likely to use internal funds but would prefer to use bank loans. Larger firms are likely to use equity and bank loans to finance investment in new or used machinery, vehicles, and equipment. To purchase land and buildings, large firms are likely to use only bank loan. However, smaller firms such as MSEs are likely to use internal funds to invest in land and buildings. Thus, unlike larger firms, smaller firms are not enjoying benefits from large scale lending. There is, therefore, need to support smaller firms, especially the MSEs forming the majority of Kenya’s industrial base to enjoy benefits from large scale lending and be able respond to growth opportunities in case they face investment financing gaps from internal funds. Therefore, the proposed policy interventions are regular review of the Financial Inclusion Fund (Hustler Fund) structure and design to ensure continuous affordable and accessible financial services that meet their demands and needs of MSEs; creating more awareness creation on the existing credit guarantee scheme to enhance its uptake; increasing MSEs listing in the Growth Enterprise Market Segment by dealing with challenges hindering MSEs listing; and finally, fostering the development of a corporate bond market and especially for MSEs
Does Bank Lending Channel Exist in Kenya: Bank Level Panel Data Analysis
No full textHG 1343 .S53 2012The study empirically investigates bank lending channel (BLC) of monetary policy
transmission in Kenya using annual bank-level panel data during the period 2001-2008.
A modified IS/LM model with bank lending is used in the spirit of Bernanke and Blinder
(1988), and banks are segregated on the basis of asset size, capital adequacy, liquidity
and foreign ownership criteria. The main finding is that BLC exists in Kenya based on
bank liquidity and capitalization. In particular, banks with less liquid balance sheets and
low total capital to risk-weighted asset ratios are hit most by monetary policy. Since low
liquidity and low capital banks are generally large banks, which contribute 82% of total
bank credit, BLC is significant in Kenya. The existence of BLC means that monetary
policy has asymmetric effects on banks and borrowers in Kenya. Further, bank credit can
be used as a nominal anchor for monetary policy and a leading indicator for economic
activity in Kenya.AER
Discussion Paper No. 114 of 2010 on Determinants of Regional Disparity in Kenya
Get PDFRegional disparity is still a key development challenge in Kenya,
despite government efforts to reduce it since independence. Given that
regional production defines the relative state of a region’s welfare,
this study focuses on factors that influence regional investment
(both public and private) in accounting for regional disparity in
Kenya. These factors include: literacy level, proportion of members
of parliament in government, availability of security services,
proportion of arable land, electricity connection, access to medical
care, financial services, portable water, quality communication and
transport infrastructure. The study therefore regresses poverty index,
used as a proxy of regional disparity, on these factors. Overall, about
half of Kenyans live below the poverty line, and only 38 per cent of the
population have adequate access to medical care. The average fertility
rate in Kenya is 5.4, with 73 per cent of the population being literate
and only 7 per cent connected to electricity. Further, 76.5 per cent
and 74.3 per cent of Kenyans travel at least 5Km to the nearest postal
services and tarmac road, respectively. Regression results show that
regional disparity in Kenya has mainly been as a result of differences
in education levels, communication network, and access to medical
and financial services across districts. Though better access to water,
electricity connection and higher tarmac road density relate positively
with increase in a region’s welfare, differences in these factors across
regions do not explain regional disparity in Kenya. This implies that
the relatively well-off regions in Kenya are not necessarily the areas
with better access to water, electricity and tarmac roads. The study
therefore recommends policy reforms that prioritize improvement
in health, education and financial services in less developed areas.
Specifically, the study proposes identification of a critical minimum
level of literacy that the government should target to achieve in all
districts (counties), with adequate interventions being put to ensure
that all regions achieve that level. Similarly, the government should
liaise with the private sector to identify appropriate incentives to
attract investment in financial services in areas not adequately served
by the existing financial institutions. Finally, in addition to improving
the overall infrastructure, enhancing communication services through
appropriate incentives is a crucial step in reducing regional disparity
in Kenya
Discussion Paper No. 383 of 2025 on The Role of Instituitions in Inculcating an Entrepreneurial Culture in Kenya
Get PDFThis study examines how institutional frameworks shape entrepreneurial intentions and culture in Kenya, motivated by the need to address critical deficiencies that impede entrepreneurship. The goal is to conduct
a comprehensive analysis of institutional contributions to Kenya’s entrepreneurial culture, focusing on the regulatory, normative, and cognitive pillars, and addressing policy issues related to institutional gaps that hinder the development of an entrepreneurship-oriented society. The analysis covers historical phases—pre-colonial, colonial, and post-colonial—to provide a nuanced understanding of institutional impacts over time. The regulatory pillar assesses the evolution from informal barter systems to formal colonial regulations, and then to post-independence reforms plagued by bureaucratic inefficiencies and financial inequities. Despite initiatives such as table banking, the Youth Enterprise Development Fund and Women’s Enterprise Fund challenges with credit access and regulatory effectiveness have persisted. The normative pillar highlights how pre-colonial entrepreneurial practices, rooted in community and necessity, were disrupted by colonial regulations but evolved post-independence to include greater participation of marginalized groups through programmes such as Ushanga Kenya. Cultural shifts and globalization have further influenced entrepreneurial behaviour negatively
Capital markets in sub-Saharan Africa
No full textCapital markets facilitate capital growth by mobilizing savings and converting them into investments, and they are therefore a stimulant of economic growth. There is evidence that countries with high savings rates tend to grow faster. Although most sub-Saharan Africa countries recognize the importance of local capital markets and have made efforts to develop them, they have not fully reaped the expected benefits. Hence the need for interventions to accelerate capital market development. These include sustaining efforts to ensure stability of the capital markets to build investor confidence through strict enforcement of the laws, regulations, and rules governing them; having a constant stable and conducive macroeconomic environment to incentivize investments; developing and implementing focused policies to support the growth of micro, small and medium-sized enterprises to enhance their listing attractiveness; having prudent and comprehensive policies that support the development of capital markets and their timely review; and designing effective approaches to exploit the anticipated benefits from trade agreements, which is key to growing the vibrant private sector necessary to support the development of capital markets
Pan Afr Med J
No full textIntroductionRabies is a fatal viral infection, resulting in >55,000 deaths globally each year. In August 2011, a young orphaned zebra at a Kenyan safari lodge acquired rabies and potentially exposed >150 tourists and local staff. An investigation was initiated to determine exposures among the local staff, and to describe animal bite surveillance in the affected district.MethodsWe interviewed lodge staff on circumstances surrounding the zebra's illness and assessed their exposure status. We reviewed animal bite report forms from the outpatient department at the district hospital.ResultsThe zebra was reported bitten by a dog on 31st July 2011, became ill on 23rdAugust, and died three days later. There were 22 employees working at the lodge during that time. Six (27%) had high exposure due to contact with saliva (bottle feeding, veterinary care) and received four doses of rabies vaccine and one of immune-globulin, and 16 (73%) had low exposure due to casual contact and received only four doses of rabies vaccine. From January 2010 to September 2011, 118 cases of animal bites were reported in the district; 67 (57%) occurred among males, 65 (57%) in children <15 years old, and 61 (52%) were inflicted in a lower extremity. Domestic and stray dogs accounted for 98% of reported bites.ConclusionDog bites remains the main source of rabies exposure in the district, but exposure can result from wildlife. This highlights the importance of a one health approach with strong communication between wildlife, veterinary, and human health sectors to improve rabies prevention and control
One Health evaluation of brucellosis control in Kazakhstan
Get PDFBrucellosis is one of the main livestock disease risks in Kazakhstan. It’s been endemic there since 1930, accounting for over 1300 human cases per annum. The economic loss was 45 million USD in 2015 alone. Since 1952, Kazakhstan has implemented various control strategies with little success. One Health approaches have been suggested to tackle brucellosis, however, there is a lack of evidence for best practices to operationalise One Health in the literature, and methods for implementation are not established. The intention of this study was to introduce the One Health approach during the evaluation phase of the policy cycle. A two-day workshop was organized by the authors to familiarize participants with the evaluation methodology. Twenty-one specialists representing veterinary and public health sector, together with researchers, took part in this study. For two weeks following the workshop, first author conducted individual interviews with workshop participants to obtain individual scorings to assess knowledge integration capacity (One Health-ness). The evaluation results show that there is a lack of knowledge about the perceived damage caused by brucellosis to animal owners and other stakeholders. There is insufficient data available about farmers’ practices, interests and motivations, and also data is missing for important transmission processes such as the amount of unsafe dairy consumption. The absence of such data illustrates the extent of the uncertainty to which decision-makers are exposed despite well-elaborated transmission models and supports the importance of co-producing solutions with participatory methods. The results suggest the need for broader involvement of stakeholders. Outputs of this study could help navigate the initial stages of One Health operationalization
Special Paper No. 37 of 2024 on County Business Environment for Micro and Small Enterprises in Kenya
Get PDFThe County Business Environment for MSEs (CBEM) framework developed by KIPPRA in 2019 monitors and supports the creation of an enabling business environment for the MSEs sector in the counties. The framework identifies key broad policy areas, and their indicators and sub-indicators vital for business environment for MSEs. Since it is important to cater for the dynamism in the business environment, the framework has over time been extended to include emerging issues that affect the MSEs business environment. The 2024 County Business Environment for MSEs framework assessed critical issues that contribute to growth and survival of MSEs, including worksite and related infrastructure, market environment, technical capacity, governance, and regulatory framework, financial inclusion, and risk and preparedness management. Like in previous assessments, the performance in these areas differed across different counties and within indicators.
The average overall score for the counties for the CBEM 2024 improved to 24.49 from 17.16 in 2022. Access to worksite and electricity connection improved and continued to rank high, indicating strides in government efforts to offer worksites to MSEs. Corruption and governance ranked the least, implying a decline in governance issues that affect MSEs. On average, Nyandarua, Nakuru, Kisumu, Nyeri and Kakamega continued to rank the best five (5) counties. Although most countries showed improved scores, Uasin Gishu, Taita Taveta, Tana River, Isiolo and Lamu counties had their scores decline
Institutions effect on households savings in Kenya: A ranked ordered multinomial/conditional probit model approach
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