Savings for Health Expenditures in Kenya

Savings for Health Expenditures in Kenya

The IPA funded another project in Kenya from 2008-2009 where researchers examined the effects of a savings group on health expenditures and preventative measures. In this study the researchers utilized the ROSCA savings groups model. The communities involved in this study were placed in four different groups. Each group was assigned a different savings plan to follow. Groups one and two were given a lock box. Group one was given the key to the box and could deposit and withdraw money as the wished. Group two could only deposit money into the safe box and could only access the funds from a program officer to purchase healthcare items or services only. Group three followed the traditional ROSCA model but included a health pot in which members could set aside funds for healthcare purposes. Group four also implemented the traditional ROSCA model however members had individual healthcare accounts that could only be used for medical emergencies.

The results of this study show that overall the savings program was very well received by the community and was effective in generating sustainable savings funds for members. One particularly important finding from this study showed that members in groups one and three demonstrated a significant increase in investment in preventative healthcare.  This is due to the fact that these options gave members access to their funds at will while also providing a secure place to make deposits. This finding was very useful in our teams’ selection of what savings model will best aid the community. The concepts used in groups one and three of this study were considered as models for the existing savings model in Langrug for our project. This model has the potential to increase community investment in preventative healthcare measures, which in turn, could be beneficial to the sustainability of the kiosk (Dupas and Robinson 2009).