PUBLIC HEALTH EXPENDITURE AND HEALTH Part 1

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Using a utility maximization approach as developed by Grossman, the results revealed that health expenditure does not affect health outcomes in Kenya. The factors that affect health outcomes include: distance to nearest health facility (5km or more) and other household income. This implies that increasing public health expenditure does not lead to reduced maternal mortality rates.

 Since the other determinants (access to medical facility and other household income) significantly affect the health outcomes, the government needs to put measures in place to ensure that women can easily access health facilities and sensitize them to ensure that they deliver in health facilities and attend antenatal care.

This study did not include some important variables that affect maternal mortality rates like the impact of cultural practices such as female genital mutilation (FGM), preference of certain types of health care providers (including traditional and herbal medicine) and earlier marriages. Therefore we suggest that in future, studies in this field should give attention to these variables.

CHAPTER ONE: INTRODUCTION

1.1 Background information

Health is the extent to which an individual or group is able to cope with the interpersonal, social, biological, and physical environments (World Bank, 2004). Health is therefore a resource for everyday life, not the objective of living. It is a positive concept embracing social and personal resources as well as physical and psychological capacities. Health financing is a key input in the provision of quality healthcare.

Governments have always had a prominent role in overcoming public health risks and this is a major area of concern in less developed countries like Kenya (Scott, 2001). The provision of good health satisfies one of the basic human needs and contributes significantly to maintaining and enhancing the productivity of the people (Owino, 1997). Public expenditure on health services therefore is a key investment in human capital and plays a catalytic role in the growth of the economy by enabling people to achieve their full potential and lead productive lives. In recognition of the importance of human health, one of the Kenya government’s major goals since independence has been to achieve adequate and good-quality health care for all citizens (GOK, 19