| dc.description.abstract | Private investment in Kenya has been identified to be moving on a downward trend since the
1980 's and the main goal of the study was to utilise time series data to analyse the extent to
which private investment contributed to growth in the period between 1980 and the year 2002.
Other objectives of the study were to empirically investigate the factors that affected private
investment during the period under review and whether there was any relationship between
growth and private investment and the impact this had on the growth of the economy.
The data used in the study was obtained from various sources including the Central Bureau of
Statistics, the World Bank Africa Database 2002, Central Bank of Kenya Publications, Economic
surveys, Development Plans, Statistical Abstracts and the International Financial Statistics
(IFS). Various tests were conducted to arrive at reliable results. These included unit root and
causality tests. The results show that private investment in Kenya was affected by various factors
with public investment and changes in domestic credit having a very strong relationship with
private investment. The results also show that although changes in the Gross Domestic Product
and the level of private investment seemed to move in the same direction, there was no causality
between the two.
Most of the other variables considered in the analysis conformed to economic theory on the
relationship between them and private investment. This been the case, what is required is for the
concerned authorities to look for ways of improving the current scenario in order to promote
private investment and hence economic growth. This partly can be achieved through maintaining
a stable investment environment and a favourable political climate | en |
