This book empirically examine the impact of public health expenditure on health outcomes in Kenya which is of interest to policy makers and forms major policy debates and priorities of many governments, in the light of improving health quality. This paper used a time series data for the period 1975 to 2008 and two measures of health outcomes namely: infant mortality rate (per 1000 live births) and under-five mortality rate (per 1000 live births) as the dependent variables and number of health professionals, public health expenditure, urbanization rate, public health expenditure as a share of gross domestic product, female literacy rate and immunization coverage for measles as independent variables. Using a combination of utility maximization and health production approach developed by Grossman (1972), results reveal that though greater health expenditure on health outcomes is being advocated for by many, it does not affect health outcomes in Kenya. The most important factors relevant to health outcomes in Kenya are number of health professionals, proportion of GDP spent on health, female literacy and immunization coverage.