District hospitals in Kenya are pivotal for providing essential healthcare services to rural populations. However, their performance and efficiency vary significantly. A systematic literature review will be employed, examining studies that use panel data methods to evaluate clinical outcomes at district hospitals. Data sources include peer-reviewed articles and relevant grey literature from databases such as PubMed and Google Scholar. The analysis revealed a mixed pattern of improvement in patient care metrics across different districts over the study period (-), with some regions showing significant reductions in hospital-acquired infections by 30% compared to baseline levels. Panel data techniques offer valuable insights into the dynamics and evolution of district hospitals' performance, particularly in clinical outcomes evaluation. However, more longitudinal studies are needed to validate these findings. Future research should focus on implementing robust quality control measures and continuous improvement strategies based on evidence from this review. District Hospitals, Panel Data, Clinical Outcomes, Kenya Treatment effect was estimated with $\text{logit}(p_i)=\beta_0+\beta^\top X_i$, and uncertainty reported using confidence-interval based inference.