An Assessment of the Impact of HIV/AIDS on Economic Growth: The Case of Kenya

HIV/AIDS pandemic in Africa has been closely associated with adverse economic effects, and could thwart the success of poverty reduction initiatives. HIV/AIDS is fast eroding the health benefits, which Kenya gained in the first two decades of independence. The paper explores the different channels through which HIV/AIDS affects economic growth in a low-income country like Kenya. Within this framework, the paper attempts to analyse the impact of HIV/AIDS on Kenya’s economic growth by way of simulations using a macroeconomic model for the Kenyan economy. Some of the key channels explored are the impact of HIV/AIDS on productivity and labour force supply; asset accumulation of human, physical and social capital; and the gender channel.

An Empirical Investigation of Exchange Rate Determination in Kenya: Does Current Account Imbalance Play a Role?

Abstract The paper investigates exchange rate determination in Kenya using vector error correction model approach to uncover the long run relationships. The empirical results show that current account balance has a role to play in the determination of the exchange rate. A rise, which denotes an improvement in the current account balance, is associated with an appreciation of the exchange rate. Additionally, higher domestic interest rates relative to foreign interest rates, as well as a rise in foreign price have an appreciating effect on the exchange rate while domestic price increase is associated with depreciation of the domestic currency. The results further show that although there are feedback effects between the exchange rate and the domestic price level, the feedback effect from exchange rate to the * The views expressed in this paper are those of the authors and do not necessarily represent those of the Institution they are affiliated to

What factors drive interest rate spread of commercial banks? Empirical evidence from Kenya

The paper empirically investigates the determinants of interest rate spread in Kenya's banking sector based on panel data analysis. The findings show that bank-specific factors play a significant role in the determination of interest rate spreads. These include bank size, credit risk as measured by non-performing loans to total loans ratio, return on average assets and operating costs, all of which positively influence interest rate spreads. On the other hand, higher bank liquidity ratio has a negative effect on the spreads. On average, big banks have higher spreads compared to small banks. The impact of macroeconomic factors such as real economic growth is insignificant. The effect of the monetary policy rate is positive but not highly significant. The results largely reflect the structure of the banking industry, in which a few big banks control a significant share of the market

Financial Decision-Making Dynamics Among Women and Financial Health in Kenya: Propensity Score Matching

Women empowerment and participation in decision-making is essential for promoting socioeconomic development and gender equality. While concerted efforts have been made to reduce gender inequality and promote women empowerment, women still lag behind men in key decision making. This paper analyzes how financial literacy and other factors influence financial decision making among women, and whether women’s participation in financial decision-making improves household financial health. The empirical analysis was conducted using propensity score matching using data from the Financial Access (FinAccess) survey 2021. The results show that a financially literate woman, or a rural woman was more likely to make key financial decisions jointly with spouse compared to a counterpart who was either financially illiterate or an urban resident. The results also indicate that a woman that made key financial decisions jointly with spouse was significantly more likely to be financially healthy compared to a counterpart that did not. The results suggest that access to financial education empower women to effectively participate in (joint) decision-making on financial related matters, which ultimately improves household’s welfare

Financial Decision-Making Dynamics Among Women and Financial Health in Kenya: Propensity Score Matching

Women empowerment and participation in decision-making is essential for promoting socioeconomic development and gender equality. While concerted efforts have been made to reduce gender inequality and promote women empowerment, women still lag behind men in key decision making. This paper analyzes how financial literacy and other factors influence financial decision making among women, and whether women’s participation in financial decision-making improves household financial health. The empirical analysis was conducted using propensity score matching using data from the Financial Access (FinAccess) survey 2021. The results show that a financially literate woman, or a rural woman was more likely to make key financial decisions jointly with spouse compared to a counterpart who was either financially illiterate or an urban resident. The results also indicate that a woman that made key financial decisions jointly with spouse was significantly more likely to be financially healthy compared to a counterpart that did not. The results suggest that access to financial education empower women to effectively participate in (joint) decision-making on financial related matters, which ultimately improves household’s welfare