Asian Journal of Economics, Business and Accounting

Background: Human capital development may support rural economic transformation, but its relationship with local development outcomes requires context-specific examination.
Aim: This study examined associations between four dimensions of human capital and rural economic transformation and sustainable development in Garissa, Wajir and Mandera counties, North Eastern Kenya.
Research Design: Using a conceptual and descriptive research design, the article investigates the links between human capital development, rural economic shifts, and sustainable progress. It looks into the specific opportunities and hurdles involved in cultivating local talent in North Eastern Kenya, placing a strong emphasis on youth empowerment, women's economic involvement, entrepreneurship, and job accessibility.
Methods: The reported quantitative analysis used responses from 90 participants and included descriptive statistics, measurement-model assessment, Pearson correlation and multiple regression. Education and technical skills, entrepreneurial capabilities, digital skills and technology adoption, and access to skills development and capacity building were considered as explanatory variables.
Findings: The research identifies human capital as a vital engine for accelerating economic transformation and sustainability in North Eastern Kenya. Key areas for strengthening individual capabilities and widening economic horizons include education, vocational training, digital literacy, entrepreneurship support, and building institutional capacity. The findings suggest that empowering women and youth through skill development, financial access, and involvement in economic decision-making is crucial for job creation and inclusive growth. While collaboration between the state, academia, the private sector, and local communities is essential to align development with local needs, the study notes that these benefits can only be realised if individual talents are successfully channeled into productive economic activities through strategic interventions and supportive frameworks.
Conclusions: The article concludes that unlocking human capital is essential for the economic transformation and sustainable development of North Eastern Kenya. By cultivating local knowledge and skills and creating practical avenues for their use, the region can improve livelihoods, drive innovation, encourage entrepreneurship, and reduce poverty. To build resilient and inclusive communities, human capital development must be a core component of regional strategies, specifically targeting women and youth. Ultimately, a coordinated effort involving government, the private sector, educational institutions, and local stakeholders is required to fully realise the region's socioeconomic potential.