Determinants of Household Healthcare Expenditure in an African Country

Abstract

Background: This is a retrospective study that examines the determinants of household healthcare expenditure (Out-of-pocket) in an African country-Kenya. Out-of-pocket healthcare expenditure is common in most households in Africa however; there is noticeable variation in the amount being expended. In order to understand the basis for the differences in household healthcare expenditure, there is the need to analyze the determinants such as age, education, income, settlement, gender, household size; and establish the link with out-of-pocket healthcare expenditure. In Africa, there are limited relevant scientific studies in this area. This study, therefore, will serve to fill the vacuum by supplying relevant scientific findings emanating from study of the determinants of Out-of-pocket healthcare expenditure an African country.

Methodology: Raw data from 2004/05 Household income and expenditure surveys conducted by Kenya Bureau of Statistics was analyzed. In all, 1340 households (representing a household per cluster of ten with equal probability of distribution) out of a total of 13,340 household selected were analyzed. Data was analyzed for the following determinants: age, education, gender, settlement, household size and total income. Further results were achieved by analyzing average household healthcare expenditure by determinants. Regression analysis was done using 95% confidence interval level.

Results: This study showed that Education and Settlement are the main significant determinants of Household healthcare expenditure using multiple regression analysis with P-value being significant at 5% error level. No other explanatory variable is significant at this level, not even at 0.1000.The elderly age group was found to have the highest expenditure at 141KShs compared with other age groups while the youngest age group has the second highest expenditure at 129.5 Kshs. However, age as a determinant is not found to be significant determinant using the regression analysis

Keywords: Determinants, Out-of-pocket, Household healthcare expenditure