Development Finance in Transition: Donor Dependency and Concentration in Kenya’s Health Sector

26 Pages Posted: 5 Mar 2021 Last revised: 9 Mar 2021

See all articles by Kaci Kennedy McDade

Kaci Kennedy McDade

Center for Policy Impact in Global Health, Duke University

Gilbert Kokwaro

Strathmore University Business School

Kenneth Munge

World Bank Group, Kenya

Osondu Ogbuoji

Duke University

Date Written: March 1, 2021

Abstract

As more countries move from low- to middle-income status, they are perceived as increasingly capable of financing their own health systems. Some donors have begun to transition their support out of such middle-income countries (MICs) to redirect their funds to countries with greater needs. However, this transition may leave a funding gap for MICs that could be difficult to fill when external resources decline. If not carefully managed, such financial shifts could lead to the loss of health gains that occurred while receiving substantial external financial support. Understanding levels of donor dependency (i.e., whether or not a country is likely to have capacity to fill a funding gap caused by donor transition) and donor concentration (i.e., when only a few donors make up the majority of aid) can illuminate areas of potential vulnerability for transition. In this study, we analyzed Kenya’s health system for donor dependency and donor concentration.

Keywords: Aid transition, aid dependency, donor dependency, donor concentration, global health, Kenya, PEPFAR, aid for health, health aid.

Suggested Citation

McDade, Kaci Kennedy and Kokwaro, Gilbert and Munge, Kenneth and Ogbuoji, Osondu, Development Finance in Transition: Donor Dependency and Concentration in Kenya’s Health Sector (March 1, 2021). Duke Global Working Paper Series No.29, Available at SSRN: https://ssrn.com/abstract=3797710 or http://dx.doi.org/10.2139/ssrn.3797710

Kaci Kennedy McDade (Contact Author)

Center for Policy Impact in Global Health, Duke University ( email )

310 Trent Drive
Box 90519
Durham, NC 27710
United States

Gilbert Kokwaro

Strathmore University Business School ( email )

P.O. Box 3009
Nairobi, 00506
Kenya

Kenneth Munge

World Bank Group, Kenya ( email )

PO Box 30577-00100
Menengai Road, Upper Hill
Nairobi
Kenya

Osondu Ogbuoji

Duke University ( email )

100 Fuqua Drive
Durham, NC 27708-0204
United States

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