EFFECT OF FUNDING STRAGEGIES ON PERFORMANCE MATRICS OF KENYA NATIONAL HIGHWAYS AUTHORITY
Abstract
The global focus on funding strategies is critical for infrastructure development, particularly in emerging economies. In Africa, inadequate financial strategies hinder sustainable infrastructure projects, essential for economic growth. Kenya recognizes the importance of funding in promoting development, with the Kenya National Highways Authority (KeNHA) playing a pivotal role in highway development and maintenance. However, KeNHA faces financial constraints, limited credit access, and challenges in Public-Private Partnerships (PPPs). This study analyzed the effect of funding strategies on KeNHA’s performance, focusing on the Road Maintenance Levy Fund, PPPs, and development partner funding. Anchored on Institutional Theory, Resource-Based View, Financial Intermediation Theory, and PPP Theory, the study adopted a correlational research design. The target population comprised 489 KeNHA staff, with 215 respondents selected via simple random sampling. Primary data were collected through structured instruments, with reliability and validity confirmed via Cronbach’s alpha (≥0.7). Data were analyzed using multiple linear regression. Findings revealed significant positive correlations between the Road Maintenance Levy Fund (r = 0.754), PPPs (r = 0.530), and development funding (r = 0.818) with performance. Regression results showed development funding (β = 0.616) and the levy fund (β = 0.276) positively influenced performance, while PPPs were not significant. It is recommended that KeNHA enhance funding strategies, particularly development funding, and continue fostering PPPs to optimize infrastructure performance and support Kenya’s economic growth.
JEL: H54 – National Government Expenditures and Related Policies (Public Infrastructure) H57 – Publicly Provided Goods O22 – Project Evaluation; Social Discount Rate L32 – Public Enterprises; Public-Private Enterprises D73 – Bureaucracy; Administrative Processes in Public Organizations R42 – Transportation Economics – Public Investment and Pricing P25 – Development Planning and Policy
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DOI: http://dx.doi.org/10.46827/ejefr.v9i4.2036
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