Effect of Project Financing on the Performance of Road Infrastructure Development Projects in Kenya
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Date
2024-01
Authors
Njoroge, Kirima Nicodemus
Minja, David
Muthinja, Moses
Journal Title
Journal ISSN
Volume Title
Publisher
RJSSH
Abstract
Road construction is an important aspect that drives the economy of the country and increases the
productivity of the people since it acts as a linkage to various factors of production. However, successful
implementation and ultimately performance of these projects requires immense resources that may not be
readily available. To overcome the financial and expertise challenges, Governments across the world enter
into strategic partnerships with the private sector to help put up such infrastructure. Unlike governments,
private sector is out to maximize profits hence the need to charge some fees to enable them recoup their
investment. This study therefore set to determine the impact of project financing on the performance of road
infrastructure development projects in Kenya. The study was anchored on resource based view theory. The
study applied a mixed method approach to collect data from the target population of 199 spread out among
15 road infrastructure development projects in the country. The study utilized both primary and secondary
data sources and adopted a combination of descriptive survey research design and explanatory design. For
primary data collection, both closed and open-ended questionnaire were used. The questionnaire’s reliability
was tested through the use of the Cronbach’s alpha reliability coefficient. The study also made use of a
structured interview process to get more insights on the research questions. The study mainly made use of
descriptive statistics to summarize data and inferential statistics and specifically the Multi linear regression
were used to test hypothesis. The analysis made use of statistical packages to analyse data and these were
presented in the form of tables and figures. The study found that project financing had a positive and
significant influence on the performance of road projects in Kenya. The study concluded that project financing
increases the amount of financing available and lower the overall risk to acceptable levels for major project
stakeholders. The study recommended that it is important to identify the problem to be dealt with concerning
the project, the stakeholder to be involved, outline the project goals that are to be achieved and all the
relevant project tasks crucial in achieving the results of the project. The study recommended that the
organization should identify the right sources of project finance.
Description
Article
Keywords
Financing, Road Construction, Infrastructure Development
Citation
KIRIMA, N. N., MINJA, D., & MUTHINJA, M. (2024). Effect of project financing on the performance of road infrastructure development projects in Kenya. Reviewed Journal of Social Science & Humanities, 5(1), 80-92.