The annual celebration of World Malaria Day on April 25 serves as a reminder that thousands of people die each year from a disease that is both preventable and curable. The World Health Organization states that nearly every minute, a child dies from malaria in Africa, where it is estimated that in 2021, 78.9% of all deaths were among children below the age of 5 years. According to the Kenya Economic Survey 2023, diseases of the respiratory system accounted for the highest disease caseload at 19.5 per cent followed by malaria at 11.7 per cent in 2022, and this is clearly shown in table 1 below.
Table 1: Cases of Diseases Reported in Health Facilities, 2018-2022
Source: Kenya Economic Survey, 2023 (page 366).
Malaria remains a crushing burden in many communities with an estimated 247 million cases worldwide in 2021, 95% of which were recorded in sub-Saharan African countries. On the basis of this data, one could say that malaria is an African disease as the citizens of this continent bear its social and economic costs. Similarly, malaria remains one of the leading causes of morbidity and mortality in Kenya with an estimated 3.5 million cases and about 10,700 deaths each year with children under 5 years and pregnant women the most at-risk groups. According to the Malaria Indicator Survey for 2020, malaria accounts for 15% of outpatient consultations in Kenya.
What are the barriers in access to malaria prevention and treatment?
Despite the government’s effort of Universal Health Coverage that was designed to ensure that all people have access to quality health services without suffering financial hardship, patients still face several barriers, including limited access to malaria prevention and treatment, and sub-optimal malaria case management because of few and distant health facilities with limited health services. This is mostly experienced in rural settings. Furthermore, the poorest may suffer more from high indirect costs such as transport costs and long waiting times. They also suffer catastrophic payments if referred to a private health hospital for treatment, due to recurrent stock-outs at public health facilities.
Cases of reported corruption continue to hamper the provision of quality health care in Kenya. The latest scandal at KEMSA emerged in a audit by the Global Fund highlighted the disappearance of treated mosquito bed nets worth Ksh. 3.7 billion. This is shocking news that predisposes low-income house-holds to illness due to lack of essential products like mosquito nets on account of government ineffectiveness in reducing corruption and pilferage. This persistent behaviour suggests that government has proven unwilling to support its vulnerable public health sector as evidenced by scandals from the infamous Covid-19 millionaires to theft and sale of free HIV drugs.
Economic Impact of Malaria on the Economy
A dated study published by the Malaria Journal evaluated the direct economic cost of malaria in Kenya and concluded that the total economic cost of malaria to children as young as 5 years of age for 2009 was approximately at 1% of GDP (US$251 million). The total direct costs of malaria account for 44% of the total estimated costs, with indirect costs, including mortality making up about 57%.
The share of malaria treatment expenditure by the government accounts for 27%, of which private households bear about 68%. The total cost of malaria hospitalization in Kenya is approximately US$ 58 per infected person in Kenya, 72% of which is borne by the government.
In Kenya, malaria also has an impact on wages; it is estimated that a 10% rise in malaria prevalence lowers monthly individual wages by 3.3%. Additionally, the overall economic cost of malaria is (on average) 1% of the total income of households and while this significant on its own, it becomes enormous when borne by only a small share of the households and thereby comprises a large share of their incomes.
In countries where malaria thrives, society has minimal prosperity and slower growth rates. Malaria affects households, healthcare systems, and thereby becomes a major obstacle to economic growth.
In the study published by the World Bank titled Malaria and Growth, McCarthy, Wolf, and Wu estimate that malaria is responsible for a decline in GDP per capita growth by atleast 0.25 percentage points annually in many sub-Saharan countries. It is estimated that malaria causes a loss of US$12 billion in gross domestic product (GDP) in Africa every year.
Social Burden of Malaria on the Economy
Malaria affects acquisition and investment in education because it can have a lifelong impact on children’s cognitive development and educational achievement. This occurs as a result of anaemia caused by malaria. The illness leads to absenteeism from classes and lower quality of educational attainment. In sub-Saharan Africa, malaria is estimated to contribute to 5% to 8% of all cause absenteeism among school going children, equivalent to 50% of all preventable absenteeism.
While in Kenya, malaria attacks contribute to 11% of absenteeism from school annually. It also has long-term negative effects. This includes reducing human capital build-up. The disease negatively impacts productivity, educational attainment, population growth, and individual savings and investments. The direct costs of preventing and treating the disease eats into poor families’ disposable income, as does the cost of lost productivity.
One of the main effects of malaria is lower labor productivity. The disease affects both the quality and quantity of work. Because in the case of illness, the ability to work and thus the performance decreases. A reduction in workload occurs when people with malaria are absent from work or when workers take days off to care for their sick family members. In 2021 in Kenya, malaria caused an annual loss of over 170 million working days.
Malaria disease not only affects the health sector, but also weighs on a country’s economic growth. The disease is putting a significant strain on the financial well-being of households and the economy as a whole.
In conclusion, given that health policy in Kenya created the obligation for distribution of insecticide treated mosquito bed nets at public health facilities, the confirmation of corruption related to the procurement and distribution of these goods, the population that is most susceptible to infection with malaria are placed at risk of serious illness and deaths for children and expectant mothers. Nothing is a greater reminder of this failure than the World Malaria Day. While combined use of IRS and ITN are effective, targeting should be at the household level, where GPS data on households can be shared between the Division of Malaria Control and the Kenya National Bureau of Statistics, who have the national sampling framework. This would ensure success of integrated vector control in malaria. The development of an effective and affordable malaria vaccine is a glimmer of hope for millions as this would complement the existing interventions some of which only offer partial protection.
Key words: Malaria, Economic growth, Poverty
The World Trade Report 2024 was launched at the start of the WTO Public Forum 2024 in Geneva titled “Trade and Inclusiveness: How to Make Trade Work for All”[1], and this blog will seek to highlight some of the most profound insights. The report delves into the crucial relationship between international trade and inclusive economic […]
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The earliest proposition of fiscal consolidation can be traced back to the Keynesian theory which argues that fiscal austerity measures reduce growth and increases unemployment through aggregate demand effects. According to this theory, government undertaking contractionary fiscal policies of either reducing government spending or increasing tax rates, will eventually suffer a reduction in aggregate demand […]
We recommended (“And then, Floods”) that the Central Bank of Kenya policy rate should be lowered by 300 basis points, from 13 to 10 percent, from August 6. Instead, a reduction of just 25 basis points, from 13 to 12¾, was made on that date. Someone is wrong. Who? In explaining the 25bp decision, it […]
There has been a misconception that when the Finance Bill 2024 was formally withdrawn, all government operations would stop because revenues would not be raised. To understand this misconception, we need to understand what a finance bill is, what revenue-raising measures are, and how that is related to the tax code. A Finance bill is […]
Post date: Tue, May 30, 2023 |
Category: Economic GrowthMalaria |
By: Oscar Ochieng, |
The annual celebration of World Malaria Day on April 25 serves as a reminder that thousands of people die each year from a disease that is both preventable and curable. The World Health Organization states that nearly every minute, a child dies from malaria in Africa, where it is estimated that in 2021, 78.9% of all deaths were among children below the age of 5 years. According to the Kenya Economic Survey 2023, diseases of the respiratory system accounted for the highest disease caseload at 19.5 per cent followed by malaria at 11.7 per cent in 2022, and this is clearly shown in table 1 below.
Table 1: Cases of Diseases Reported in Health Facilities, 2018-2022
Source: Kenya Economic Survey, 2023 (page 366).
Malaria remains a crushing burden in many communities with an estimated 247 million cases worldwide in 2021, 95% of which were recorded in sub-Saharan African countries. On the basis of this data, one could say that malaria is an African disease as the citizens of this continent bear its social and economic costs. Similarly, malaria remains one of the leading causes of morbidity and mortality in Kenya with an estimated 3.5 million cases and about 10,700 deaths each year with children under 5 years and pregnant women the most at-risk groups. According to the Malaria Indicator Survey for 2020, malaria accounts for 15% of outpatient consultations in Kenya.
What are the barriers in access to malaria prevention and treatment?
Despite the government’s effort of Universal Health Coverage that was designed to ensure that all people have access to quality health services without suffering financial hardship, patients still face several barriers, including limited access to malaria prevention and treatment, and sub-optimal malaria case management because of few and distant health facilities with limited health services. This is mostly experienced in rural settings. Furthermore, the poorest may suffer more from high indirect costs such as transport costs and long waiting times. They also suffer catastrophic payments if referred to a private health hospital for treatment, due to recurrent stock-outs at public health facilities.
Cases of reported corruption continue to hamper the provision of quality health care in Kenya. The latest scandal at KEMSA emerged in a audit by the Global Fund highlighted the disappearance of treated mosquito bed nets worth Ksh. 3.7 billion. This is shocking news that predisposes low-income house-holds to illness due to lack of essential products like mosquito nets on account of government ineffectiveness in reducing corruption and pilferage. This persistent behaviour suggests that government has proven unwilling to support its vulnerable public health sector as evidenced by scandals from the infamous Covid-19 millionaires to theft and sale of free HIV drugs.
Economic Impact of Malaria on the Economy
A dated study published by the Malaria Journal evaluated the direct economic cost of malaria in Kenya and concluded that the total economic cost of malaria to children as young as 5 years of age for 2009 was approximately at 1% of GDP (US$251 million). The total direct costs of malaria account for 44% of the total estimated costs, with indirect costs, including mortality making up about 57%.
The share of malaria treatment expenditure by the government accounts for 27%, of which private households bear about 68%. The total cost of malaria hospitalization in Kenya is approximately US$ 58 per infected person in Kenya, 72% of which is borne by the government.
In Kenya, malaria also has an impact on wages; it is estimated that a 10% rise in malaria prevalence lowers monthly individual wages by 3.3%. Additionally, the overall economic cost of malaria is (on average) 1% of the total income of households and while this significant on its own, it becomes enormous when borne by only a small share of the households and thereby comprises a large share of their incomes.
In countries where malaria thrives, society has minimal prosperity and slower growth rates. Malaria affects households, healthcare systems, and thereby becomes a major obstacle to economic growth.
In the study published by the World Bank titled Malaria and Growth, McCarthy, Wolf, and Wu estimate that malaria is responsible for a decline in GDP per capita growth by atleast 0.25 percentage points annually in many sub-Saharan countries. It is estimated that malaria causes a loss of US$12 billion in gross domestic product (GDP) in Africa every year.
Social Burden of Malaria on the Economy
Malaria affects acquisition and investment in education because it can have a lifelong impact on children’s cognitive development and educational achievement. This occurs as a result of anaemia caused by malaria. The illness leads to absenteeism from classes and lower quality of educational attainment. In sub-Saharan Africa, malaria is estimated to contribute to 5% to 8% of all cause absenteeism among school going children, equivalent to 50% of all preventable absenteeism.
While in Kenya, malaria attacks contribute to 11% of absenteeism from school annually. It also has long-term negative effects. This includes reducing human capital build-up. The disease negatively impacts productivity, educational attainment, population growth, and individual savings and investments. The direct costs of preventing and treating the disease eats into poor families’ disposable income, as does the cost of lost productivity.
One of the main effects of malaria is lower labor productivity. The disease affects both the quality and quantity of work. Because in the case of illness, the ability to work and thus the performance decreases. A reduction in workload occurs when people with malaria are absent from work or when workers take days off to care for their sick family members. In 2021 in Kenya, malaria caused an annual loss of over 170 million working days.
Malaria disease not only affects the health sector, but also weighs on a country’s economic growth. The disease is putting a significant strain on the financial well-being of households and the economy as a whole.
In conclusion, given that health policy in Kenya created the obligation for distribution of insecticide treated mosquito bed nets at public health facilities, the confirmation of corruption related to the procurement and distribution of these goods, the population that is most susceptible to infection with malaria are placed at risk of serious illness and deaths for children and expectant mothers. Nothing is a greater reminder of this failure than the World Malaria Day. While combined use of IRS and ITN are effective, targeting should be at the household level, where GPS data on households can be shared between the Division of Malaria Control and the Kenya National Bureau of Statistics, who have the national sampling framework. This would ensure success of integrated vector control in malaria. The development of an effective and affordable malaria vaccine is a glimmer of hope for millions as this would complement the existing interventions some of which only offer partial protection.
Key words: Malaria, Economic growth, Poverty
The World Trade Report 2024 was launched at the start of the WTO Public Forum 2024 in Geneva titled “Trade and Inclusiveness: How to Make Trade Work for All”[1], and this blog will seek to highlight some of the most profound insights. The report delves into the crucial relationship between international trade and inclusive economic […]
The Price Control Act of 2011, with its imposition of price ceilings on essential goods, represents a significant intervention in the natural forces of supply and demand that govern a free market. The Act empowers the Minister to control the prices of essential goods, preventing them from becoming unaffordable. The Act outlines a specific mechanism […]
The earliest proposition of fiscal consolidation can be traced back to the Keynesian theory which argues that fiscal austerity measures reduce growth and increases unemployment through aggregate demand effects. According to this theory, government undertaking contractionary fiscal policies of either reducing government spending or increasing tax rates, will eventually suffer a reduction in aggregate demand […]
We recommended (“And then, Floods”) that the Central Bank of Kenya policy rate should be lowered by 300 basis points, from 13 to 10 percent, from August 6. Instead, a reduction of just 25 basis points, from 13 to 12¾, was made on that date. Someone is wrong. Who? In explaining the 25bp decision, it […]
There has been a misconception that when the Finance Bill 2024 was formally withdrawn, all government operations would stop because revenues would not be raised. To understand this misconception, we need to understand what a finance bill is, what revenue-raising measures are, and how that is related to the tax code. A Finance bill is […]