Assessment Of Capital Rationing Practices As Deter-minants Of Effective Completion Of Cdf Funded Projects: A Case Of Kasarani Constituency

Abstract

Effective completion of CDF funded Project depends not only on capital availability but is greatly influenced by the capital rationing practices adopted by management in allocat- ing available funds to various projects. CDF being a government fiscal decentralization mod- el similar to federalism applied in many other parts of the world faces budgetary constraints, which require adoption of sound management capital rationing practices. Successive budget deficits are common phenomena in Africa and most governments bridge the gap through bor- rowing and grants. The introduction of CDF in 2003 triggered massive demand for projects that require financing through the exchequer hence pressurizing the already insufficient fund- ing. The study was based on 72 projects proposed and approved for implementation and fi- nancing by the Kasarani CDF between year 2003/2004 and 2011/2012 financial year from which 22 projects were samples for observation. The study focused on the estimated 1,000 employees of various CDF financed projects within Kasarani constituency from which a ran- dom sample of 280 respondents was drawn and questionnaires administered. The self- administered questionnaires were distributed and collected after a week, which provided pri- mary data, while secondary data was obtained from the CDF website. Quantitative data was analysed by descriptive analysis and in addition, multiple regression was used to explain the strength in relationship between the dependent and independent variables. The study found out that effective completion of CDF funded projects is influenced by capital rationing prac- tices.