Effect of External Remittance on Health Outcome in Kenya

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.

Although the number of migrants has grown

1. Acaroğlu, H., & Ada, A. A. (2014). The Relation between Human Capital and Economic Growth in MENA Countries. Journal of Public Administration and Governance, 205-216. [Google Scholar] [Crossref]

2. Amega, K. (2018). Remittances, education and health in Sub-Saharan Africa. Cogent Economics and Finance. [Google Scholar] [Crossref]

3. Bloom, D., & Canning, D. (2000). The Health and Wealth of Nations. Science, 1207-1208. [Google Scholar] [Crossref]

4. Bloom, D., & Canning, D. (2008). Population Health and Economic Growth. Commission on Growth and Development, Working Paper No. 24, 1-25. [Google Scholar] [Crossref]

5. Greene, W. (2012). Econometrics Analysis (7th ed.). Prentice Hall: Pearson Education. [Google Scholar] [Crossref]

6. Grossman, M. (1972). On the Concept of Health Capital. The Journal of Political Economy, 224-225. [Google Scholar] [Crossref]

7. Gujarati, D. (2005). Basic Econometrics. Newyork: The McGraw-Hill Companies. [Google Scholar] [Crossref]

8. Hildebrandt, N., & McKenzie, D. J. (2005). The Effects of Migration on Child Health in Mexico. World Bank Policy Research Working Paper 3573. [Google Scholar] [Crossref]

9. Kenya National Bureau of Statistics. (2018). Basic Report Based on 2015/2016 Kenya Integrated Household Budget Survey. Nairobi: KNBS. [Google Scholar] [Crossref]

10. OECD (2025). International Migration Outlook 2025. DOI: https://doi.org/10.1787/ae26c893-en. [Google Scholar] [Crossref]

11. Ponce, J., Olivie, I., & Onofa, M. (2011). The Role of International Remittances in Health Outcomes in Ecuador: Prevention and Response to Shocks. International Migration Review, 727-745. [Google Scholar] [Crossref]

12. Schultz, T. (1961). Investment in Human Capital. The American Economic Review, 1-17. [Google Scholar] [Crossref]

13. The World Bank. (2025). Migration and remittance forecast. Washington D.C: The World Bank. [Google Scholar] [Crossref]

14. The World Bank. (2016). Migration and Remittances Factbook (3rd ed.). Washington D.C: The World Bank. [Google Scholar] [Crossref]

15. Thoumi, A. (2016). The Effect of Remittances on Population Health: An Analysis of Remittances, Health Outcomes, and Health Expenditures. Retrieved 2019, from A Masters Thesis, submitted to the Faculty of the Graduate School of Arts and Sciences of Georgetown University. [Google Scholar] [Crossref]

16. Weil, D. (2007). Accounting for the Effect of Health on Economic Growth. NBER Working Paper No. 11455, 1-53. [Google Scholar] [Crossref]

• Cost Analysis of Delivering Sexual and Reproductive Health Services Among Adolescents and Young People in Zambia: Results from the Yathu Yathu Trial
• Are Migration Remittances and Development Assistances Pathways to Improve Nigeria Health Outcomes?
• Empowerment and Nutrition: Analyzing Women’s Food Consumption through Socio-Economic Lenses Using NFHS 5 Data