Kenya could generate economic benefits worth Sh3.1 trillion by investing just about Sh786.8 billion to close gaps in care infrastructure, state-owned think tank, Kenya Institute for Public Policy Research and Analysis (KIPPRA) has said.
In its policy paper titled ‘Investing in Care Infrastructure: A Cost-Benefit Analysis’, the think tank recommends that the country commit an average of Sh52.5 billion annually over 15 years to expand care-supporting infrastructure.
This includes healthcare, childcare, education, water, sanitation, energy, transport, digital connectivity and community care services.
The investment is projected to deliver net benefits of Sh2.3 trillion, with every shilling invested generating Sh3.9 in total economic benefits and Sh2.9 in net returns.
The paper argues that care activities, which include unpaid and paid work supporting children, older persons, people living with disabilities and those requiring assistance, already represent a significant part of Kenya’s economy.
It estimates that care activities were valued at Sh5.2 trillion in 2024, equivalent to 32.4 per cent of Kenya’s gross domestic product (GDP), despite limited investment in the infrastructure needed to support the sector.
“Investing in care infrastructure is highly cost-effective, generating nearly fourfold total economic returns on each shilling invested,” reads the paper.
Beyond improving access to essential services, the analysis projects that investment in care infrastructure would increase Kenya’s economic output by Sh1.09 trillion, equivalent to a 6.7 per cent rise in GDP.
The benefits would spread across key sectors, including agriculture, textiles, business services, creative industries, information and communication technology (ICT), and trade.
The report also highlights the role of care investments in expanding labour market opportunities, estimating total labour income gains of Sh232.3 billion.
Women would receive Sh124.8 billion, representing 53.7 per cent of the benefits, while men would receive Sh107.4 billion.
Household income benefits are projected at Sh234.1 billion, with women’s households accounting for Sh125.8 billion and men’s households receiving Sh108.3 billion.
However, the analysis notes that benefits could be unevenly distributed, with urban households and higher-income groups expected to capture a larger share unless targeted measures are introduced to support rural communities and lower-income households.
The paper recommends combining care infrastructure investment with policies that improve education access, strengthen women’s participation in growth sectors and support rural inclusion to ensure broader economic gains.
It further calls for detailed county-level analysis to guide targeted investments and maximise the impact of care economy programmes across the country.
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