Effects of Devolved Funding Policies on Household Welfare in Kenya

Shibairo, Peter (2023) Effects of Devolved Funding Policies on Household Welfare in Kenya. Doctoral thesis, The Open University of Tanzania.

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Abstract

The Government of Kenya has since independent implemented Policies and Programmes to reduce poverty and improve household welfare.Devolved funding policies are the latest policies being implemented. The extent to which these policies have impacted on the house welfare in Kenya has elicited a great debate with past studies yielding contradictory outcomes. The main purpose of this study was to assess the effect of devolved funding policies on the household welfare in Kenya and contribute to the debate. In the analysis of the objectives, the study adopted non�experimental pooled cross sectional research design and used primary data of households listed by Kenya Integrated Household Budget (KIHBS, 2019) sampling frame and a sample of 384 respondents was generated. Structured questionnaire was used as the main tool to collect primary data. To examine the influence of devolved Social Safety Funds on household welfare the study used Poisson regression model. To establish the influence of devolved enterprise funds on household welfare in Kenya, the study used a heteroskedastic probit model and to determine the influence of devolved health and education financing on household welfare in Kenya, the study used a probit model. The outcome of the study revealed that, household welfare increased by 36.3 percent with the social net funds recording the biggest effects of 56.5 percent leading to higher per capitai expenditure. The findings concludes that the devolved funding policies has a positive effect on household welfare in Kenya. The government should strive to expand all programmes under these policies and reduce all the administrative and logistical challenge that impedes the success of the policies. Keywords: Devolved funding policies, Household welfare, and enterprise funds Health and education financing policies

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