Title:
Does Household Consumption Expenditure Improve Health Outcomes of Countries in Sub-Saharan Africa?

Authors:
Joseph Abuga Orayo, CPA Dennis Nyamasege, Simeo Okelo, Kenya

Abstract:

Despite gradual economic expansion and rising household expenditure across many countries in Sub-Saharan Africa (SSA), the region continues to experience poor health outcomes characterized by low life expectancy and high under-five mortality rates. This persistent disconnect raises concerns regarding whether increases in household consumption expenditure meaningfully translate into improved population health outcomes. Consequently, this study examined the effect of household consumption expenditure on health outcomes in SSA. Specifically, the study assessed the effect of household consumption expenditure on life expectancy and under-five mortality using panel data for 27 SSA countries covering the period 2000–2024. The study adopted a positivist research philosophy and a longitudinal non-experimental panel research design. Secondary data were obtained primarily from the World Bank World Development Indicators database. Panel econometric techniques including fixed and random effects models were employed, with the Hausman specification test guiding model selection. Relevant diagnostic tests were conducted to ensure robust and valid estimations. The findings revealed that household consumption expenditure had a statistically insignificant effect on life expectancy (β = −0.00017, p > 0.10), implying that variations in aggregate household expenditure did not meaningfully influence longevity across the sampled countries. However, household consumption expenditure exhibited a weak positive and statistically significant effect on under-five mortality at the 10 percent level (β = 0.00228, p < 0.10), suggesting that increases in aggregate consumption expenditure did not necessarily translate into improved child survival outcomes. The study concluded that household consumption expenditure alone is insufficient to guarantee improvements in population health outcomes in Sub-Saharan Africa. The findings imply that the health effects of household expenditure depend on the composition, efficiency, and allocation of expenditure toward health-enhancing goods and services, alongside the broader institutional and healthcare environment. The study recommends strengthening social protection systems, improving healthcare accessibility, expanding universal health coverage, and promoting nutrition-sensitive and child-focused interventions to ensure that household expenditure contributes to meaningful and sustained improvements in population health outcomes.

DOI: https://doi.org/10.51505/IJEBMR.2026.10706