Factors influencing the performance of public-private-partnerships in the Kenyan housing sector

Abstract

Public sector often lacks expertise and knowledge to implement Public-Private Partnerships successfully. To manage Public-Private-Partnerships efficiently, government officials need guidance on how to apply Public-Private-Partnerships in different sectors of the society to ensure optimum service delivery to its citizenry. The objective of the study was to determine factors influencing the performance of Public-Private-Partnerships in the Housing sector in Kenya. Specifically, the study was set to: determine factors influencing the performance of Public-Private-Partnerships in the Housing sector in Kenya; and determine the extent to which such factors lead to success of Public-Private-Partnerships in Kenya. The research adopted a descriptive survey with the target population comprising 96 real estate development agencies located in Nairobi, Ministry of housing, Public-Private Partnership Unit at Treasury, Ministry of Lands and Ministry of Local Government through the Nairobi City Council. The study used disproportionate stratified sampling technique. The study collected primary data through the use of questionnaires which contained both open and closed ended questions. The study found that political and socio-economic environment factors like stable political system and affordability and favorable economic conditions affected the performance of Public-Private-Partnerships. The findings further revealed that risk management factors including appropriate risk allocation, type of agreements in the contract and guarantees from the governments affected the performance of Public-Private-Partnerships. Public-Private-Partnerships enabled the public sector to leverage more financial resources by using the private sector as an intermediary to great extent; and Public-Private-Partnerships allowed the public sector to consider the implementation of the otherwise unaffordable infrastructure projects to a great extent.