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      • Determinants of Regional Disparity in Kenya

        Jacob C. Ng’ang’a 연세대학교 빈곤문제국제개발연구원 2010 Journal of Poverty Alleviation and International D Vol.1 No.1

        Regional disparity is key development challenge in Kenya. Since regional production defines the relative state of a region’s welfare, this study focuses on factors that influence regional production in accounting for regional disparity in Kenya. These factors include literacy level, parliamentary representation in government, security services, availability of arable land, electricity connection and access to medical care, financial services, portable water, quality communication and transport infrastructure. The study uses modest analytical tools to determine how poverty level, used as a proxy of regional disparity, is explained by these factors. Overall, about half of Kenyans live below the poverty line and only 38 percent of the population have adequate access to medical care. The average fertility in Kenya is 5.4 with 73 percent of the population being literate and only 7 percent connected to electricity. Further, 76.5 percent and 74.3 percent of Kenyans travel at least 5 kilometers to the nearest post services and tarmac road, respectively. Regression results show that literacy levels, access to medical facilities and credit, proportion of arable land, region’s representation in government and proximity to infrastructure in terms of road, security, communication and water positively relate to the pattern of regional disparity in Kenya. However, relatively better regions in Kenya, in terms of lower poverty levels, are not necessary those with better access to water, security, electricity connection and higher tarmac road density. 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 literacy level for all districts, with adequate interventions to improve access to education in marginal areas. Similarly the government should liaise with private sector in identifying 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.

      • Small Businesses in Kenya: Transition from Informal to Formal Enterprises

        Jacob C. NG’ANG’A,Anne GITONGA 연세대학교 빈곤문제국제개발연구원 2015 Journal of Poverty Alleviation and International D Vol.6 No.2

        The Kenyan economy is broadly characterized by two parallel sectors: the formal comprised of registered businesses and the informal defined by the economic activities of non-registered businesses. Despite the several advantages of registering a business, only a minority of businesses in Kenya are registered. This paper addresses the question of why a large number of small businesses in Kenya opt to operate informally. The findings show that firm age, size of business, owner’s experience, business sector, gender of owner and type of business premise influence the choice to register a business. The paper recommends that the government simplify registration and link it to licensing, decentralize and automate registration, and enforce registration without directly linking it to tax obligations.

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