Public Private Sector Partnership as a Tool for Job Creation a Case Study of Gulf Power Project, Athi River, Kenya

Abstract

Employment is a real challenge to most countries around the world irrespective of whether they are developed or developing. The scenario is worse in developing countries. Successive governments of Kenya have taken many initiatives to tackle the upsurge, but the problem persists. This study was undertaken to explore whether PPPS can be used to create jobs. The study was carried out on the Gulf Power Project in Athi River, Machakos County, Kenya. The study’s specific objectives were (i) To investigate the jobs generated by the Gulf Power Project PPP. (ii) Investigate the merits of the Gulf Power Project PPP (iii) Investigate the constraint’s facing the PPP and the strategies used in coping with the attendant challenges. Literature on PPP was reviewed and data collected on KPLC, GPL and private companies that are still working on the project and those that worked on it during the construction phase. A key informant at the National Treasury was interviewed to give an overview of the status of PPPs in Kenya. A questionnaire was administered to collect data. Quantitative data was analyzed using SPSS (Statistical Package for Social Scientists). Qualitative data was analyzed through investigating responses by identifying, examining and interpreting specific patterns and themes that emerged from the respondents. The study found that PPPs do create jobs but the jobs are dependent on the type of PPP contract, the contract duration and the size of the project. The study found that most jobs were in the construction phase of the project and were mostly manual and not permanent. All the employees that worked on the plant during the construction phase received routine training from the main contractor improving their employability. Some employees were fortunate to received further training from their employers. The study found that most of the employees that worked and work on the Gulf Project were male. The study found that the government of Kenya does not have a policy that emphasizes job creation in PPPs, even though it is interested in jobs creation by the PPP. Research needs to done to develop a policy that guides number of jobs expected when designing PPPs and the number of youths to be employed. Another area for research is that the government has implemented PPPS without a framework for risk assessment and mitigation framework, though it was in the process of developing one. Research needs to be done on how the framework will impact the ongoing contracts. Kenya lacks a lot of information on PPPs and there is a lot that need to be understood about them, hence a lot of research needs to be done. The study findings can be used as a basis for policy recommendation. There lacks a policy for youth inclusion in the PPPs and those contracting and contracted did not have a policy for youth inclusion in the projects.