The Determinants of Public Education Expenditures: An Empirical Analysis of Changing Patterns and Growth of Public Expenditure on Education in Kenya

Abstract

This paper examined several factors that affect growth of public expenditure on education sector using reputable theories of public policy analysis, economics, and public finance. These theories were used to test and examine these factors mainly for the purposes of providing public policy recommendations. Standard multiple linear regression analysis method was used to analyze factors affecting growth of public expenditure on education using the four formulated models and equations representing; general education sector, primary, secondary and university education. The results in general showed that majority of the factors tested were positively significant and caused an increase of public expenditure on education. The paper found noticeably increase in public expenditure on education sector in Kenya since 1980 from the results, but still the actual amount of money spend on education sector is less than what is required. Therefore, the government should not only increase financial allocation but should also find reliable sources of funding education sector. In addition, the government should carry out reviews in all schools syllabuses in order to meet current changing jobs demands and maintaining quality education.