The Effect Of Infrastructure Investments On The Economic Growth Of Kenya

Abstract

The past decade witnessed highest development expenditure dedicated towards improvement and development of new infrastructure corridors and networks in Kenya. This trend extended two decades of public reforms in development expenditure stretching back to 2003, when government reforms focused on domestic sourcing of development funding from tax collections. The past decade was unique in that efforts towards infrastructure development were anchored on the vision 2030 strategic development plan. This portended resolute dedication towards infrastructure development, integrating diverse source of financing such as development aid inform of grants, concessional loans, commercial loans and even Public-private-partnerships (PPPs). In the same period, very little evidence has come out to show what such efforts in infrastructure development has yielded for the citizens in regard to household income and quality of lives. Therefore, the current study seeks to determine whether infrastructure investments impact on economic growth from the household perspective. The analysis looks into investments into infrastructure notably; roads infrastructure, energy generation, public amenities and public utilities and the impact on per capita income of the country. The study shall adopt, descriptive survey design. Secondary data, shall be obtained from published budgetary and public expenditure reports as published by the treasury ministry, parliament reports and the central bank of Kenya (CBK). Further, data on per capita income shall be extracted from publications of the Kenya National Bureau of Statistics (KNBS). Data analysis will utilize time series data (2001 – 2021) which will cover 30 years. In addition, linear regression technique and panel regression model will be employed in the study.