Efficient health care provision is one of the key pillars of the millennium development goal in Kenya and Tanzania. This paper compares the efficiency of health care provision in Kenya and Tanzania between 1970-2012 using annual expenditure data and selected health care outcomes. Data envelopment analysis (DEA) is used to establish the level of efficiency in the two countries. The paper reports that health care is provided more efficiently in Tanzania than in Kenya. Overtime, health efficiency in Tanzania declined and there was a convergence with Kenya. The policy implication is that health care being a public good is provided more efficiently in an economy where government size is large as opposed to economies where the government size is small. Efficiency changed in response to policy changes. These changes were in response to unique challenges which are country specific.
Keywords: Comparative efficiency, Health, DEA, Kenya, Tanzania.