Most parents, particularly in low-income communities, struggle to find safe and reliable childcare providers.

According to Kenya News Agency, children are often left either in the care of family members or with neighbors, while parents who can afford to hire domestic workers do so. Others send their children to informal childcare centers, which are usually operated by untrained caregivers and are often poorly maintained, exposing children to a variety of health and safety risks.

Women face particularly difficult choices regarding childcare. These include leaving their children with suboptimal care or no care, working reduced hours, taking more flexible or informal work-which tends to offer less security and lower pay-or giving up work entirely. To quantify the economic impact of improving access to childcare and enabling more mothers to work through greater public investment, The Economist Impact analysis developed a first-of-its-kind model. Its findings confirm the broader economic gains that countries
could witness by investing in childcare.

Global Health Strategies, in a press release ahead of the G20 meeting, stated the report supported by the Bill and Melinda Gates Foundation estimated employment income losses between USD 0.03 billion and USD 12.6 billion in 2022 due to employable mothers not participating in the workforce. The research study, The Childcare Dividend Initiative, examined 15 key global economies, accounting for nearly 48 percent of global GDP and 42 percent of the global population. It included Kenya and focused on the potential benefits of higher maternal employment and its resulting positive impact on the economy.

The study reveals that inadequate childcare access is costing economies up to USD 4.4 billion in lost income in sub-Saharan Africa. However, strategic investment in childcare could enable 1.7 million more mothers to work, generating new jobs and lifting household incomes. In 2022, income losses in Kenya were estimated at 0.2 billion USD, equivalent to 0.21 percent of GDP,
due to approximately 36,670 employable mothers being unable to participate in the workforce due to inadequate access to affordable, quality childcare. Kenya suffered among the largest economic losses, second to Nigeria, which had an estimated 1.09 percent of GDP lost.

Addressing the gap in public sector childcare provision, a number of social enterprises and start-ups have formed across East Africa. The report cites Kidogo, a non-profit social enterprise, as an example. Established in 2014 in Kenya, Kidogo uses an innovative model to address the childcare crisis in informal settlements, aiming to set children up for success, help mothers, and create economic opportunities for childcare operators. Kidogo provides training specific to early childhood development and running a center, a starter kit with key resources, and ongoing mentorship to women in the community to start or expand their own childcare centers.

Rudaba Zehra Nasir, global lead for care and economic inclusion at the Gender and Economic Inclu
sion Group, IFC, emphasized that while there are basics all countries must consider, solutions cannot be one-size-fits-all, particularly for emerging markets. She highlighted that the conversation should focus on innovation and ensuring quality of care in low-cost, low-income settings, rather than imposing often hard-to-meet international standards that may not necessarily be feasible locally. Social enterprise models, mobile crèches, community-led initiatives, and cooperatives are some of the ways this is being done in emerging markets like India and Kenya.

Kidogo has received widespread recognition for its contributions to transforming access to quality and affordable childcare across East Africa. It is currently the leading childcare network in Kenya, with over 500 childcare centers supporting 11,000 children and operating in 32 communities in seven counties across East Africa. The childcare dividend initiative termed Kenya as one of the best performers in Sub-Saharan Africa with respect to early childho
od education enrollment. It noted that investment supporting full enrollment of children in the pre-primary school age group could increase school enrollment to 100 percent, potentially enabling approximately 0.2 million mothers to join the workforce by 2030.

Economist Impact uses policy research and media to address global issues, working with organizations on sustainability, health, and new globalization. The childcare dividend research examined Kenya, Australia, Brazil, Canada, Chile, Germany, India, Indonesia, Mexico, Nigeria, South Africa, South Korea, the UK, the United States, and Vietnam.