Examining Lending Institutions' Impact on Healthcare & Human Capital

This essay examines the impact of international lending institutions on Kenya's economic, political, and social development, with a specific focus on the healthcare sector and human capital. It highlights how foreign aid facilitates infrastructure development, empowers businesses, and promotes social development through cultural diversification. The essay further discusses the crucial link between a healthy population and a strong economy, emphasizing increased productivity, reduced mortality rates, improved technology, and lower crime rates. It also analyzes how foreign aid has been utilized to enhance Kenya's healthcare system, including providing free maternity services, collaborating with international partners like India to improve specialized healthcare access, and devolving healthcare services to county governments to ensure broader access to quality medical facilities. The essay concludes by referencing key studies that support the arguments presented.

Running head: LENDING INSTITUTIONS, HEALTH CARE, AND HUMAN CAPITAL
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Lending Institutions, Health Care, and Human Capital
Student’s Name
Institutional Affiliation

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Impact of International Lending Institutions to Kenya
The international funding has played a key role in improving various sectors of Kenya’s
economy, political, and social development. In terms of economic development, the foreign aid
enables the government to develop infrastructure which spurs up business transactions. People
are able to travel easily to obtain and supply goods and services through improved roads and
communication networks hence developing the economy. The World Bank also approved $180
million on April 26, 2018, which will enable Kenya to improve the electricity generation through
the KenGen Company. This will help to lower the current high costs of electricity and promote
competitive business operations. The youths and women will be empowered to run businesses on
24-hour based systems as there will be enough lighting which will reduce cases of crimes.
Social development has also been made possible through international funding.
Affordable business transactions enable the Kenyans to interact more hence developing their
social sector. For instance, as suppliers deliver goods to customers, they interact and get to know
and understand each other well. This also promotes diversification of cultures through improved
infrastructure which has enabled people to relocate to other parts of the country hence separating
from their usual culture and people. This makes them assimilate themselves into the new cultures
and also spread theirs to the new residences hence diversifying the Kenyan culture and social
norms.
How a Healthy Population Strengthens the Economy of Kenya
Sustaining a healthy population is a great way of strengthening the economy of Kenya.
Investing in health is a critical and anticipated priority for many governments since health and
economic performance are mutually interlinked.

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Increased Productivity
When people are healthy, they are likely to work more effectively and produce more
quality goods and services than when they are not. It is also possible that the healthy working
people will be able to provide enough food and other basics for the whole family without having
to rely on the government provision hence enabling it to save more money per investment. For
instance, if a population comprises of unhealthy people, they will not have the strength to work
in the manufacturing industries to provide food and other basics for the family and the nation at
large (Linnerooth-Bayer & Mechler, 2015). This will prompt the government to import most of
the products hence weakening the ability to save for other investments. This means that the
unhealthy people will also have to rely on the government for food provision. A healthy
population means higher life expectancy which also encourages training of the adults so that the
workers acquire high skills for production.
Reduced Mortality Rates
Good health leads to reduced mortality rates which means that the labor supply to work
in the development of the economy is positively affected. When there are fewer people dying
because of various diseases, the economy is deemed for development as there are enough
workers to work in the industries and the manufacturing sectors hence developing the economy.
Again, the government is led to spending less money in funding the health systems in order to
curb such mortality rates (Bray, & Lillis & Eds, 2016). This means that the need to pay money
for the health insurance coverage is reduced hence the government can spend such funds for
other profitable investments.
Improving Technology

LENDING INSTITUTIONS, HEALTH CARE, AND HUMAN CAPITAL 4
Healthy workers are able to explore more in terms of technology which boots
developments. For instance, people are able to engage in global trade whereby technology is vital
and hence are made to explore more on the technology so as to succeed in international trade.
Development of technology can help improve other sectors such as the education, agriculture,
and other sectors. For instance, it is through advanced technology that Kenya is able to make use
of the available land to produce more food which sustains the population and also sell the surplus
for foreign income (Kulb et al, 2016).
Reduced Crime Rates
A healthy nation is a working nation. When people are healthy, they have the
determination to develop themselves through engaging in legal and profitable activities. Such
may include sporting activities, exploration, and others. Thus, when people are busy engaging in
these activities, the crime rates tend to decrease as people do not have time to waste in criminal
activities. Their minds are filled with ideas of developing themselves hence time to engage in
criminal acts is lost.
How The Leadership of Kenya Has Used Foreign Aid to Improve Its Health Care System.
Research indicates that foreign aid-supported healthcare programs have played a
significant role in reducing the mortality rates in Kenya. Through foreign funding, the country
has been able to provide quality healthcare to her citizens including the poor people. For
instance, some years back, pregnant women had to pay money to access maternity services and
this prompted most of them to opt to deliver from their homes with the help of the village
midwives who may not have enough skills, hence accelerating the infant mortality rates (Lambe
et al, 2015). Through the funding by the International Monetary Fund, the government has been
able to provide for free maternity services for all women in the public hospitals. Now, every

LENDING INSTITUTIONS, HEALTH CARE, AND HUMAN CAPITAL 5
pregnant woman can access the services without any charges and this has helped to promote the
health of the infant and the mothers.
Recently, the government of Kenya collaborated with that of India to enable the Kenyans
to access quality health services. This collaboration was aimed to increase the capacity for
specialized health services within the country and also reduce the charges for the Kenyans who
need to travel for such services in India. The Kenyan president and India's Prime Minister also
signed a contract which will enable the Indian medical facilities to be set up in Kenya so as to
reduce the costs of traveling abroad for the same (Okibo & Makanga, 2014). The Kenyan
government is also set to use the international funds to facilitate the traveling of Indian doctors to
establish medical camps as well as international healthcare network between the countries. This
will enable the countries' medical practitioners to interact and share their medical knowledge for
a mutual benefit.
Kenya has also devolved her government into county governments and this has promoted
self-governance. This enables the national government to provide funds for local governments
which ensures that all the citizens can access medical facilities near their village homes. With the
help of foreign funds, the government is in the process of establishing health facilities in every
county where patients will access quality health care services (Kersting & Kilby, 2016). For
instance, the president signed up a contract which demands that by 2020, there will be a cancer
treatment center in every county so as to reduce the congestion normally witnessed at the
national hospitals, mostly located in Nairobi – the capital city.

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References
Bray, M., & Lillis, K. (Eds.). (2016). Community Financing of Education: Issues & Policy
Implications in Less Developed Countries (Vol. 5). Elsevier.
Kersting, E. K., & Kilby, C. (2016). With a little help from my friends: Global electioneering
and World Bank lending. Journal of Development Economics, 121, 153-165.
Kulb, C., Hennink, M., Kiiti, N., & Mutinda, J. (2016). How does microcredit lead to
empowerment? A case study of the Vinya wa Aka group in Kenya. Journal of
International Development, 28(5), 715-732.
Lambe, F., Jürisoo, M., Lee, C., & Johnson, O. (2015). Can carbon finance transform household
energy markets? A review of cookstove projects and programs in Kenya. Energy
Research & Social Science, 5, 55-66.
Linnerooth-Bayer, J., & Mechler, R. (2015). Insurance for assisting adaptation to climate change
in developing countries: a proposed strategy. In Climate Change and Insurance (pp. 29-
44). Routledge.
Okibo, B. W., & Makanga, N. (2014). Effects of micro finance institutions on poverty reduction
in Kenya. International Journal of current research and Academic Review, 2(2), 76-95.