The Key to Human Capital Development

The key to unlocking Kenya as "the new Singapore" is in building human capital to enable our citizens to thrive.
Caleb Kiarie

Back in May of this year, the U.S Ambassador to Kenya Meg Whitman famously remarked that Kenya has the potential to become Africa’s Singapore. This was a powerful and lofty indication of Kenya’s ambition for the future, but what does the road to becoming Africa’s Singapore look like? What factors need to be considered for this outlook to materialize? Do investments in infrastructure, industries, and services get us there? Or is there a more nuanced approach?  

There is little surprise in Kenya embracing the Ambassador’s label, as Singapore has long been the benchmark for the developmental aspirations of emerging nations. It wasn’t so long ago that the little island nation developed from a “country with a low-skilled workforce and high incidence of tropical diseases to the best-performing state in the World Bank 2018 Human Capital Index” as explained by the Global Delivery Initiative. With its vibrant and youthful population, Kenya has the potential to follow a similar trajectory by strategically investing in areas that align with the demands of the 21st-century global economy.

The Path: Human Capital

According to the World Bank Group (WBG), human capital consists of the knowledge, skills, and health that people invest in and accumulate throughout their lives, enabling them to realize their potential as productive members of society.

In 2018, at a WBG Annual Meeting on Human Capital, then WBG President Dr. Jim Kim made a call to action for countries to “make investments in people – ensuring that they accumulate the health, knowledge, and skills needed to realize their full potential and put those skills to use across the economy.” This spurred the WBG to launch their Human Capital Project, a move focused on smarter investments in people and the development of a human capital index to measure both the current and potential productivity of a country’s people. Furthermore, the Human Capital Project emphasized the need for nations to make serious investments in programs that promote mental well-being, particularly addressing mental health conditions earlier in life.  

World Bank Group Data

World Bank Group Data

As depicted in the images above, Kenya’s human capital index stands at 55%, a figure that, while higher than the average for Sub-Saharan Africa and other low- and middle-income countries (LMICs), remains significantly lower than that of nations like Singapore, which boasts an impressive 88%. Far from being disheartening, this disparity should be viewed as a powerful testament to Kenya’s immense potential. Despite the current gap, Kenya’s standing ahead of regional peers and the global average for LMICs positions it uniquely to make substantial strides in human capital development.

The Connection Between Mental Health and Human Capital

The 21st century is undoubtedly the most competitive era in human history. People today are more educated than ever, have greater access to information, and face a rapidly evolving job market. Due to globalization Kenya is now competing with other LMICs, both regionally and globally, to become a hub for global supply chain diversification, advanced-skills labor, and high-level knowledge work such as coding. This era will require nations like Kenya to enhance investments in early childhood education and interventions beyond infrastructure but toward mental health, ensuring a holistically prepared mindset to compete and thrive in such a future.  

At Shamiri Institute, we have been building the foundations of human capital development in our youth through our model and interventions. By impacting our nation’s youth at the age of onset of mental health disorders, we can be the starting point for transforming our nation toward this Singaporean dream.

Kenya Mental
Kenya Mental Health Investment Case 2021

From a purely economic perspective, we need not look further than Kenya’s own Mental Health Investment Case 2021, which states that mental health conditions cost the Kenyan economy KES 62.2 billion (US$571.8 million) in 2021, owing to early mortality, presenteeism, and absenteeism. These statistics highlight the dire economic consequences of neglecting mental health and underscore the importance of integrating mental health into our broader economic development strategies. These strategies are also supported by investing in early-life mental health programs, which are far more cost-effective than dealing with them in adulthood.

Mental Health, Education and Transition into the Workforce: A Synergistic Approach

A 2023 article in the Journal of Mental Health & Employment underscores the essential link between mental health and successful school-to-work transitions. Mental health challenges like anxiety and depression can hinder young people’s employment prospects. Early interventions are crucial for building resilience, which enhances employability and overall well-being. As schools are our operational focus, this transition is crucial to our work, as we aim to impact not only mental health but also the holistic human capital elements that will drive Kenya’s ambition to become a competitive, industrialized middle-income country by 2030.

Investing in mental health is not just a social imperative; it is an economic necessity. A mentally healthy population is more productive, innovative, and capable of contributing to economic growth. When individuals are mentally well, they are more likely to engage in the workforce, pursue higher education, and develop the skills needed for a rapidly changing job market, especially in the present era of economic disruptions and rapidly evolving demands on the modern-day workforce.

Shamiri Institute’s Role in Human Capital Development

Our mission at Shamiri Institute is to transform the mental health landscape in Kenya and eventually Africa as we scale upward. We are committed to developing and implementing evidence-based interventions that can improve the mental health of our youth as well as their post-educational prospects. By doing so, we seek to enhance the overall human capital of our nation, contributing to economic growth and development.

Conclusion

Kenya’s ambition to become Africa’s Singapore is achievable, but it requires a holistic approach that goes beyond infrastructure and industrial investments. By focusing on the mental health of our population, particularly our youth, we can build a more productive, innovative, and resilient workforce. Shamiri Institute is proud to be at the forefront of this effort, ensuring that mental health is an integral part of our nation’s journey towards economic growth and human capital development.

By investing in the mental well-being of our young people, we are not only improving individual lives but also laying the foundation for a prosperous and competitive Kenya that not only aspires to be Africa’s Singapore, but becomes the regional equivalent. We are deeply invested in this vision and are committed to making it a reality through our work.

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