Influence of Capital Structure on Sustainability of Community Water Projects
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Date
2018
Authors
Solomon Muriungi Mburung’a
Journal Title
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Abstract
The purpose of this study was to investigate the influence of capital structure on sustainability of
community water projects. The objective of the study was to investigate influence of capital structure
(equity financing-community‟s contribution; debt financing; grant financing-donor funds; and water
tariffs) on sustainability of community water projects. The study adopted a cross-sectional
descriptive survey design and data was collected using questionnaires, interview schedules and
observation schedules. Both descriptive and inferential statistics were used in analysis. The study
established that, there was significant but moderately weak positive relationship between equity
financing (community‟s contributions) and level of sustainability of community water projects. In
addition, there was a weak negative relationship between grant financing and level of sustainability of
community water projects. Hence, increase in grants reduces the levels of sustainability of a
community water project. None of the projects utilized any debt finance such as loans in their capital
structure. Finally, there was a significant moderate positive relationship between water user fee and
sustainability of community water projects. The study recommends that, communities should give
more of their own resources while donors should, either reduce or insist on refund for funds
donated to improve sustainability of community water projects.
Description
Article
Keywords
Sustainability, Community Water Projects, Capital Structure
Citation
Mburung’a, S. M. (2018). Influence of capital structure on sustainability of community water projects. European Journal of Sustainable Development, 7(4), 323-323.