Effect of External Remittance on Health Outcome in Kenya

Abstract

A healthy population contributes significantly to a nation’s economic development. Despite this, Kenya has reported an average infant mortality rate of 40.4 deaths per 1,000 live births, exceeding the global average of 27.9 per 1,000. This situation has hindered the country’s productivity, reduced national income, and slowed efforts to alleviate poverty. The study aimed to examine how external remittances influence health outcomes. It relied on time series data from multiple sources covering the years 2004–2024. A multivariate regression model was developed, and the Ordinary Least Squares (OLS) method was applied to estimate the relationship between remittances and infant mortality. The study was guided by the Grossman theoretical framework. Results showed that remittances were associated with a reduction in infant mortality. Based on these findings, the study recommends that the government, together with financial institutions, facilitate affordable, secure, and efficient channels for transferring earnings from abroad to help improve national health outcomes.