A country with an educated populace generally records higher levels of GDP growth due to fact that educated people are more productive and can innovate on existing technology. Kenya currently has a free primary education program with this goal in mind. This strategy may proof to be less effective than expected because according to Eric A. Hanushek (World Bank) quality of education has powerful effects on individual earnings, on the distribution of income, and on economic growth. Based on the poor infrastructure of our schools, policy makers definitely have to relook this issue. 2.Capital:
Empirical studies indicate increased economic growth with increased capital input. This effect is more so felt in developing economies such as Kenya where the capital input is low thus an increase causes a significant increase in growth. Recently Kenya has fostered a development relationship with china. This relationship has proven fruitful as evidence by the building of roads and the planned development of a new port in the coastal town of Lamu. Notable is the landing of the fibre cable which is projected to reduce communication costs thereby creating a suitable environment for the now infant Out Sourcing and ICT industries to grow. 3.Life expectancy:
The correlation between health and income is well known. Preston (1975) showed that life expectancy is positively correlated with income, with higher levels of life expectancy achieved for equivalent levels of income in later periods.
According to UNICEF statistics the life expectancy is set at 53. The...