Factors Influencing the Use of Public-Private Partnership Model in Implementation of Road Projects In Kenya: A Case of Kenya National Highways Authority

Abstract

Both developed and developing countries are facing unprecedented fiscal problems, and are unable to devote the resources necessary to properly expand and maintain it. PPPs are risk-sharing investments in the provision of public goods and services, seen by governments as a means to launch investment programmes that would not be possible in reasonable amounts of time within the available public sector budget. Kenya has had some degree of PPP failures in the road sector. The current study, hence, sought to establish the factors influencing the use of public-private partnership model in implementation of road projects in Kenya. The study specifically sought to establish the influence of public accountability, project financing, government policies and project risk management on the use of PPP model. This study employed descriptive research design. The target study population included 62 officers from KENHA. The study conducted a census on all the respondents. A multiple ordinary regression model was used. All statistical tests were conducted at 5% level of significance. The findings of correlation and regression analysis revealed that there was a significant relationship between project risk management, project financing, government policies and public accountability and use of public-private partnership model in implementation of road projects in Kenya. The study concluded that concluded that public accountability through transparency in budgetary process, fair contracting and accessibility of accounting information enhance the use of public-private partnership model in implementation of road projects in Kenya. The study further concluded that project financing is a key component in the use of public-private partnership model in implementation of road projects in Kenya. The study also concluded that adequate policies ensures that stakeholders in the PPP projects remain committed to use of public-private partnership model in implementation of road projects in Kenya.

Keywords: Public Accountability, Project Financing, Government Policies, Project Risk Management, Implementation of Road Projects