| dc.description.abstract | The research project explored the correlation among road infrastructure investment and economic development in Kenya with special reference to the role of private and public sectors for a period of 35 years from 1980 to 2014. Time series data was used and was mainly sourced from the Central Bank of Kenya (CBK), World Bank, Economic surveys and Statistical abstracts from the Kenya National Bureau of Statistics (KNBS). The study sought to achieve two main objectives namely: to examine the correlation between government expenditure on roads infrastructure and economic development in Kenya and to examine the relationship between the amounts that private sector is investing on roads infrastructure and economic progress in Kenya. This was achieved by running a simple linear regression model where GDP growth was regressed on public spending on road infrastructure, private expenditure in roads infrastructure and labour force. The findings of the study were that for every one billion Kenya shilling spent on road infrastructure by the government, GDP growth increases by 4.5 percent holding other factors constant. This implies that public expenditure in road infrastructure impacts on the economic growth positively. For the private spending in the road infrastructure, the finding is that for every one billion shillings invested on road infrastructure GDP growth increases by 1.4 percent ceteris peribus. Therefore the study recommends for more sensitization of the PPPs programme now that a legal framework has been enacted through the PPP Act of 2013. In so doing the government can leverage on this to mobilize more financial resources from the private sector which will be more cost effective thus avoiding high costs of loans that come from borrowing from international financial lenders. In addition, the government needs to fast track the annuity financing programme given that private sector mainly the banks and other financiers are to be involved from the onset of the project, this will enhance timely completion of the project. In addition it fosters efficiency given that all the private stakeholders involved in the project are enjoined together as a consortium. | en_US |
