Education Contribution to Economic Development1

Education Contribution to Economic Development1


Generally, for a country to achieve a stable economic background, it has to have sufficient workforce that can manage the economy. The sufficiency in this case is achieved through training of the people and giving proper education to the students. It is worth noting that economies controlled by foreigners may be stable but at a higher risk of failing incase of a crisis. Therefore for security purposes, the government should focus towards training of the students of the country and making education easily accessible and affordable. Research has proven that education is under all circumstances the most vital factor for a developing country. For instance, in Kenya, it will be necessary to create innovation and allow for creativity in starting out economic friendly projects or developments. Similarly, with sufficient knowledge, students may be able to consider self employment rather tan seek white collar jobs that are limited, thus creating employment for others. (Ozturk, 2001) also argues on the basis of inability of a country experiencing wide development without full investment of resources in its human capital. This is because people are responsible for running the economy. Similarly, with proper education, research has further proven that the people are enriched with the necessary skills to be of benefit to themselves, other individuals and the society at large, and also offer security to the social development of a country.

Kenya is undoubtedly a developing country, thus relies on man power to develop its economy than it does on capital. The economy is referred to as labor intensive as opposed to that of developed countries which is capital intensive. In cases where capital is used such as computers, it requires humans to run it which would require appropriate education in Information Technology, thus illustration f the importance of education (Kinuthia, 2009). The system should however not limit the education offered to securing of white collar employments only. It is clear tat for the economy to be fully independent; all sectors of the economy should be fully involved including careers that are not as highly regarded. For instance, a career in music should be treated as good a some in accounting. This is because with much knowledge regarding the music industry, a person can be able to produce quality music which will be entertaining to the intended audience. Therefore, it may be treated as their source of income, thus, their way of building the economy. Experience has shown that the neglect of some of the areas like entertainment has left many people unprofessional, thus, little knowledge and poor delivery which when reflected on their income, pools the economy behind. This gives a clear indication on the discussion of education contribution in the economy; all sectors should be treated with equal importance to avoid benefit of some areas at the expense of others.

Despite various arguments, there has been controversy over the necessity of education to enhance the economy in Kenya. It is therefore necessary to research on the importance in order to establish how great the effect is on the financial system and whether it is a major contributor in the same. Its contribution is evident in the following ways:

Creates Quality Workforce

In the 20th century, the economy of Kenya was not as sable as it is believed to be now. This is mostly because people could secure employment with minimum education. Despite the training that would be offered, the qualification was not as intense as it is today. In today’s employment industry, competition is very intensive which requires one to be fully qualified for an intended industry. Similarly, one has to further their education in order to maintain employment and have the ability to cope with the current competition in the market for the best labor force (Fashoyin, 2001). Therefore, it is not optional to receive quality education for one to be absorbed in the workforce. As a result of these numerous qualifications, there are new ideas developed on how different organizations can make the most out of their operations and maximize their profits. Ideas on how to reduce operational costs are welcomed by firms from the different employees. Therefore, with much competition, the economy is improving daily. Similarly, new organizations that are privately owned are a challenge to the government to enhance their operations. This relates directly to the economy. The higher the quality of education and number of people educated, the more the competition in the job market. Competition will force the people to work harder in order to maintain their employment. The harder they, work, the higher the returns of whichever organization, thus, the economy will have more finances, both from taxes and investments by the earners.

Employs Diverse workforce

Different professional qualifications are offered in Kenyan learning institutions to people with different interests. These include art, accounting, law, music depending on the desire of the person seeking the employment. This enhances diversity in the careers one may take after completion. Firms on the other hand have become more open minded on the type of services they need and may need people with different qualifications t work in a single organization. For instance, an accounting firm may need a lawyer and a caterer. A lawyer may be able to notify them on the needs of the firm and the legal positions incase of a dispute and matters such as contracts that need legal interpretation. A caterer on the other hand may be able to offer advisory services on health for the workers and the types of food they need with their job description. This is all a result of the current education system. Therefore, workers are more comfortable and professionally involved such that there is specialization of duties. Mistakes that may occur due to limited knowledge in a particular area are also minimized. Wit maximum concentration, the productivity is also very high. Firms may focus on their goals which for most are profit maximization. This will enhance their returns to the government, increased competition and a definite improvement/development of the economy. The diversity also enables the workers to learn different skills which make them more competitive in the job market (Ozturk, 2001) with necessary abilities of better performance.

Supportive to Business Trends and Industry

Current business and industry receives support through the customized services offered by higher education (Fashoyin, 2001). Higher education in Kenya has proved to be a valuable resource with the observed changes in technological and economical changes. For instance, educated people have sufficiently provided technical assistance where needed whether employed or not. Different associations/companies have been formed by educationists that have offered consultancy services where necessary to developed organizations where they experience difficulties. Thus, income they earn from the services have offered are taxed and increase the government’s collection and income. Their stability has also enhanced the money circulation in the country thus, an improved economy (Bloom, 2006).

Similarly, the education acquired by students in Kenya has helped the business trends and industry in terms of providing management development and ensuring customized training where there are gaps. Before the introduction of adult higher education, the education was limited to those studying full time such that no one could study when employed. The system upon identification of the gaps that existed in the employment force adjusted the rules to allow for the study of adults and part time programs. As a result, employees who had less education had the chance to further their studies and maintain their employment. This loophole was discovered by the current trend which advocated for flexibility. Therefore, the improved performance was enhanced as a result of appropriate and necessary qualifications. With these, it has been easier for people to work better and improve the economy of the country. Similarly, the businesses have become more professional being that they are run and influenced by professionals which allows the improved performance, job creation and higher revenues. The most important factor of education in this category is the skills of interrelation that allow for the identification of new market for products. This has resulted in wider marketing and trading, thus more clients and revenue for the government. International trading has also been proven to be a booster for the economy of many countries which is also the case in Kenya.

Takes Visible Roles in Regional Initiative

For many years, graduates from Kenyan Universities have brought up the issue of lack of employment after completion of their various degrees. It has however been established that the system should not only train its students for white collar jobs and seeking employment. Research has show that the larger percentage which is not employed has taken up self employment which has bee their stable source of livelihood (Osler, 1994). Besides the academic knowledge offered in the course of the study, the students should be ale to acquire the relevant skills to apply their knowledge to the larger world. This form of innovation has improved the economy of the country. For instance, a student with accounting skills is in a better position to start a consultancy firm for individuals and firms who ma need assistance in their accounts evaluation. This is similar to those with finance skills as they may offer financial advice to individuals without the knowledge. The education, despite the limited employment opportunities has enabled the increase of innovation and self employment. As discussed earlier, without sufficient education, one’s thinking is limited which may lead to lack of innovation (Osler, 1994). The rate of self employment has tremendously increased and provided the country with more sources of income, creation of employment which also reflects to the government in form of increased taxes. The less money lying around and the increased change of hands has largely influenced the economy for the better since it develops constantly.

Disseminate Research and Promote Technology Transfer

Research conducted by higher education enhances the economic development of a particular country in various ways. In Kenya, higher education requires the carrying out of personal research in a specific field to make practical and ensure application of skills in real life. With the kind of research, the students will be able to identify the working conditions they will be subjected to and incase of any loopholes identified, measures taken to seal them will enable the firms to seize every opportunity to increase their funds. Similarly, opportunities discovered might be transformed into ideas that will enable them come up with more income generating activities. He research may also enable the discovery of various forms of technologies that may be applied to improve the quality of work and increase the performance speed (Ozturk, 2001).


It is undoubtedly true that in Kenya, education is a booster of the economy. Despite the limited employment opportunities, it has been proved that the available positions have provided for intensive competition which has improved the results and economic outcome. Similarly, innovation by the learned has ensured that they come up with ideas where they can apply their acquired skills to benefit the community financially with the income they generate. It is therefore important to appreciate the value that education gives to the people. The government also has a task of ensuring that the education provided to its citizens is affordable to avoid chances where they seek to study in other countries and opt to remain there.


Bloom, D., Canning, D., & Chan, K. (2006). Higher education and Economic Development in Africa. Human Development Sector.

Fashoyin, T. (2001). Social Dialogue and Social and Economic Development in Kenya. InFocus Programme on Strengthening Social Dialogue. Geneva: International Labor Office.

Kinuthia, W. (2009). Educational Development in Kenya and the Role of Information and Communication Technology. International Journal of Education and Development Using ICT, 5(2).

Osler, A. (1994). Development Education in a Developing Country: A Study of Curriculum Innovation in Primary Schools. A Journal of Comparative and International Education, 24(1). pp 79-92.

Ozturk, Ilhan (2001): The Role Of Education In Economic Development: A Theoretical Perspective. Journal of Rural Development and Administration, 1. pp. 39-47.