The Impact of Implementation Capacity on the Link between Infrastructure Financing and Success in Kenya's Vision 2030 Public Projects

Authors

  • John W. Nguri PhD Candidate in Business Administration, Faculty of Business and Management Science, University of Nairobi
  • Dr. Duncan Elly Ochieng (PhD, FFA, CPA) Senior Lecturer, Department of Finance and Accounting Faculty of Business and Management Sciences, University of Nairobi
  • Prof. Gituro Wainaina Department of Management Science and Project Management, Faculty of Business and Management Sciences, University of Nairobi

DOI:

https://doi.org/10.47672/ijpm.2554

Keywords:

Infrastructure Financing, Implementation Capacity, Public Capital Projects, Cost Time Overrun

Abstract

Purpose: This study examines the success factors influencing cost and time variances in public capital projects in Kenya, with a focus on identifying sectoral disparities and the role of financing and implementation capacity. It aims to provide insights into mitigating risks to achieve Kenya's Vision 2030 infrastructure goals.

Materials and Methods: The study employs descriptive statistics and regression analysis to evaluate data on cost and time overruns across various infrastructure sectors, including roads, energy, and water and sanitation. The analysis explores the impact of infrastructure financing (internal, external, and PPP) and implementation capacity factors such as procurement, supervision, planning, and payment processes.

Findings: The results reveal significant variability in cost and time overruns across sectors. The road sector recorded the highest mean cost overrun, while the energy sector exhibited the highest risk of cost overruns. Time overruns were also prominent, with the road sector experiencing the greatest variability. Internal financing increased both cost and time overruns, whereas external financing reduced them due to stringent oversight mechanisms. PPP projects, however, experienced notable overruns due to the complexities of multi-stakeholder management. Enhanced implementation capacity significantly mitigated both cost and time overruns, while delayed payments to contractors exacerbated project inefficiencies.

Implications to Theory, Practice and Policy: The study emphasizes the need for enhanced risk management strategies tailored to sector-specific challenges. Strengthening implementation capacity through better procurement, planning, and supervision is critical to reducing variances. Policymakers should prioritize timely payments to contractors and adopt stricter accountability measures for internally and PPP-funded projects. Leveraging external financing's oversight benefits while simplifying PPP frameworks can further enhance the success of public capital projects.

Downloads

Download data is not yet available.

References

Akinyemi, F. & Adewale, T. (2023). Governance and Infrastructure Development: Lessons from Nigeria. Journal of African Economies, 32(1), 65-87.

Amadi, E., & Nwachukwu, U. (2022). Infrastructure Financing and Development in Africa: A Comparative Study of China and Nigeria. African Review of Economics and Finance, 14(2), 34-59.

Jensen, M.C., & Meckling, W.H. (1976). Theory of the Firm: Managerial Behavior, Agency Costs, and Ownership Structure. Journal of Financial Economics, 3(4), 305-360.

Kenya National Bureau of Statistics. (2023). Economic Survey 2023. Nairobi: Government Printer.

Mutua, M., Kimani, J., & Mwangi, P. (2022). Challenges Facing the Implementation of Public Infrastructure Projects in Kenya: A Focus on Vision 2030. International Journal of Project Management, 40(5), 897-905.

Mwangi, D. (2021). Corruption and Its Impact on Infrastructure Development in Kenya. East African Business Journal, 15(2), 45-60.

Myers, S.C., & Majluf, N.S. (1984). Corporate Financing and Investment Decisions When Firms Have Information That Investors Do Not Have. Journal of Financial Economics, 13(2), 187-221.

Odhiambo, J., & Wamuyu, M. (2021). Project Management Practices and Infrastructure Development in Kenya. Journal of Construction and Project Management, 12(1), 54-73.

UNCTAD. (2023). World Investment Report: Investing in Sustainable Development. Geneva: United Nations Conference on Trade and Development.

World Bank. (2023). Kenya Economic Update: Infrastructure for Growth. Washington D.C.: World Bank.

Xu, L., Zhao, Q., & Feng, Y. (2021). Implementation Capacity and Infrastructure Project Success: Evidence from China. International Journal of Infrastructure, 29(3), 453-471.

Zhao, Q., & Feng, Y. (2020). The Role of Governance in Infrastructure Development in China. Journal of Asian Economics, 23(4), 67-82

Downloads

Published

2024-12-13

How to Cite

Nguri, J. W., Ochieng, D. D. E., & Wainaina, P. G. (2024). The Impact of Implementation Capacity on the Link between Infrastructure Financing and Success in Kenya’s Vision 2030 Public Projects. International Journal of Project Management, 6(5), 20–31. https://doi.org/10.47672/ijpm.2554

Issue

Vol. 6 No. 5 (2024)

Section

Articles

License

Copyright (c) 2024 John W. Nguri, Dr. Duncan Elly Ochieng, Prof. Gituro Wainaina

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution (CC-BY) 4.0 License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.