Structure of Infrastructure Bonds and Operational Performance of Road Projects in Nairobi Metropolitan Region, Kenya
| dc.contributor.author | Aoko, Roselyn Anyango | |
| dc.date.accessioned | 2026-04-02T06:24:00Z | |
| dc.date.available | 2026-04-02T06:24:00Z | |
| dc.date.issued | 2025-12 | |
| dc.description | A Thesis Submitted to the School of Business, Economics and Tourism in Partial Fulfilment of the Requirements for the Award of the Degree of Master of Science in Finance of Kenyatta University, December 2025 Supervisors: 1.Fredrick W.S. Ndede 2.Jennifer G. Njaramba | |
| dc.description.abstract | Infrastructure projects in Kenya frequently encounter challenges related to adequate funding and timely completion. The present study seeks to evaluate how the configuration of infrastructure bonds affects the operational efficiency of road development initiatives within the Nairobi Metropolitan Region. In particular, the investigation focused on the extent to which bond interest rates, bond returns, and amortization schedules shape the performance outcomes of road projects in Nairobi, Kenya. Furthermore, the research explored the moderating role of inflation in influencing the relationship between infrastructure bonds and project performance in the region. The inquiry was anchored on three theoretical frameworks: the Efficient Market Hypothesis, the Liquidity Preference Theory, and the Theory of Constraints. A longitudinal research design was adopted to adequately address the study objectives. The target population comprised all 18 road construction undertakings implemented in the Nairobi Metropolitan Region between 2014 and 2022, from which the entire set of projects was examined. A detailed survey of these projects was conducted. Secondary data covering the period 2014–2022 were obtained from multiple institutions, including the Central Bank of Kenya, the National Treasury, the Ministry of Transport, Infrastructure, Housing, Urban Development and Public Works, and the Kenya Urban Roads Authority, using structured data collection templates. The dataset was analyzed through both descriptive and inferential statistical techniques, facilitated by STATA version 14.0. Hypothesized associations were tested using panel regression analysis at a 95% confidence level. The findings revealed that infrastructure bond interest rates, bond returns, and amortization structures exert a significant influence on the performance of road projects within the NMR. The results revealed that higher interest rates and bond yields negatively affect project execution by increasing borrowing costs and constraining available funds, while well-structured amortization schedules positively impact completion by facilitating predictable cash flow and efficient resource allocation. Descriptive analysis showed relative stability in these bond parameters, enhancing investor confidence and reducing financial uncertainty. The findings align with the Liquidity Preference Theory and the Theory of Constraints, highlighting the importance of managing financing costs and systemic bottlenecks to sustain project performance. Based on these results, the study recommends that the National Treasury stabilize bond interest rates and yields through clear issuance schedules and aligned maturities. The Treasury should also enhance amortization management to maintain high, steady repayment rates. The Central Bank of Kenya should continue managing inflation and interest rates to support predictable, affordable financing, while project managers ensure cash flows align with bond repayment schedules to minimize funding gaps and delays | |
| dc.description.sponsorship | Kenyatta University | |
| dc.identifier.uri | https://ir-library.ku.ac.ke/handle/123456789/32887 | |
| dc.language.iso | en | |
| dc.publisher | Kenyatta University | |
| dc.title | Structure of Infrastructure Bonds and Operational Performance of Road Projects in Nairobi Metropolitan Region, Kenya | |
| dc.type | Thesis |