Introduction the importance of infrastructure for economic development cannot be gainsaid, as the superstructure of kenyas overall wealth hinges on it. Impact of infrastructure development on economic competitiveness. Telecommunication information and communication technology ict 3. Department of state country commercial guide 2000, however, the current state of most roads is deplorable. Kenya infrastructure sector analysis trademark east africa. Supporting infrastructure development projects in kenya. Infrastructures impact on development links to economic growth infrastructure represents, if not the engine, then the wheels of economic activity. However, infrastructure projects, including those in. Effects of infrastructure development on foreign direct. First, the supply of infrastructure leads to social economic development and secondly, the development potential creates demand for infrastructure.
Infrastructure development represents a broad spectrum of activities. The effects of infrastructure development on growth and. His forthcoming book is the political economy of development in kenya. Afdb the africa infrastructure development index 2016. Why infrastructure development in africa matters africa renewal. Komposites kenya ltd ministry of transport, infrastructure, housing, and urban development. Roads infrastructure investment and economic growth in kenya. The three casestudy countries kenya, mauritius, and south africa show that capacity is.
The biggest investments are in infrastructure sectors mainly transport, energy, water and urban development, followed by social sectors health and social protection. His forthcoming book is the political economy of development in kenya continuum books. Kenya has moved backwards with respect to the millennium development goals in water and sanitation, and living conditions in nairobis slums are particularly poor. Introduction kenya has seen a significant rise in infrastructure development in the recent past, especially in sectors such as real estate development, energy and transport. This report focuses on the participation of africas seven new and emerging partners neps in africas infrastructural development brazil, china, india, korea, malaysia, russia and turkey hereafter the nep7 economies. The impact of infrastructure on trade and economic growth. A revision of the original methodology is currently underway as more data are collected under the auspices of. Thats why we designed pida programme for infrastructure development in africa, a 30year strategy by nepad, the african union and african development bank afdb, focusing on regional trans. Impact of transport infrastructure investment on regional. Arewa despite recent trends towards robust economic growth in many subsaharan african countries, a number of challenges remain, including those emerging from persistent infrastructure deficits. With governments across the continent committing billions of dollars to infrastructure, africa is at the start of a 20 to 30year infrastructure development boom. Drought, slow credit growth, and indirect effects of regional conflict are taking their toll on uganda, but infrastructure and oil sector investment could boost growth over the next 35 years, said the imf in its annual assessment of the ugandan economy. Kenya infrastructure sector analysis trademark east.
Kenya airways will be the first carrier in africa to use boeings consumable and expendable services. Infrastructure constraints and development in kenya sage journals. Inputoutput tables show that in the economies of japan and the united states, for example, telecommunications, electricity, and. Kenya led the east african region in infrastructure deals struck in 2015, according to a new survey by financial consultancy firm deloitte. To develop and maintain cost effective public buildings and other public. Effects of infrastructure journal of infrastructure. Infrastructure development this report focuses on the participation of africas seven new and emerging partners neps in africas infrastructural development brazil, china, india. The group shares the latest research and points of view on emerging industry trends and develops industryspecific.
The african constructions trends report shows that kenya. Thus, infrastructure facilities are vital to socialeconomic development of urban and rural areas through direct and indirect benefits. Infrastructure for economic growth and shared prosperity in. The investment industry emphasizes on the economic. Given that kenya is a relatively welloff lowincome country that aspires to become a middleincome country, two sets of african benchmarks will be used to evaluate kenyas situation. Infrastructure and healthcare service delivery in tiaty subcounty, baringo county, kenya article pdf available october 2017 with 2,478 reads how we measure reads.
Infrastructure development plays a major role in promoting growth and. However, the numerical magnitude of this importance or significance at best remains a controversial issue at this moment while pioneer efforts in the field suggest a positive relationship between infrastructure development and economic growth and report robust positive. Roads infrastructure investment and economic growth in. This growth was on account of the ongoing public infrastructure projects and private sector development in the real.
Infrastructure constraints and development in kenya. Infrastructure and economic development in kenya 1. The effects of infrastructure development on growth and income distribution cesar calderon and luis serven abstract this paper provides an empirical evaluation of the impact of infrastructure development on economic growth and income distribution using a large panel data set encompassing over 100 countries and spanning the years 19602000. Infrastructure constraints and development in kenya citeseerx. In this stocktaking report, kenyas historical pursuit of sustainable development is traced and put in perspective from 1963 when kenya attained independence to present but with emphasis on the period between 1992 and 2012, which is the focus of this report. Bringing kenyas infrastructure up to the level of the regions middleincome countries could boost annual growth by more than three percentage points. Other development challenges include maintaining macroeconomic stability to boost savings and investments.
Opportunity spending optimizations for ppps d africas annual infrastructure needs are estimated at usd 93 billion, i. Kenya witnessed a thriving building and construction sector in 2015 registering a growth of. Raising the countrys infrastructure endowment to that of africas middleincome countries could increase that contribution by 3 percentage points. Chinese investment, infrastructure deficits, and development olufunmilayo b. These reports are particularly relevant to national policy makers and development partners working on specific countries. Effects of infrastructure development on real estate values in kenya. This report provides a comprehensive industry profile, analysis and outlook of kenyas infrastructure sector. Inputoutput tables show that in the economies of japan and the united states, for example, telecommunications, electricity, and water are used in the production process of 14. Mar 07, 2016 infrastructure and economic development in kenya 1. Pdf download for transport infrastructure development in kenya. Pdf effects of infrastructure development on real estate. It also, incidentally, provides basic amenities that improve the quality of life. Pricewaterhousecoopers kenya has recognised these challenges and has an infrastructure industry group focused on the sector unique needs.
The essential role of infrastructure is being rediscovered worldwide as a key component of a comprehensive development strategy. Pdf infrastructure and healthcare service delivery in. The kenyan government is actively seeking bids to improve and expand infrastructure networks, domestically and across east africa to improve trade flows in the region infrastructure development projects are it is expected to open up significant trade opportunities. The study examined kenyas transport infrastructure by assessing. Infrastructure for economic growth and shared prosperity. Kenyas turnaround in growth agenda was realised with the election to power of the national. As a practical tool, this guide acknowledges the challenges of power project development and related community.
Kenya infrastructure, power, and communications kenya has an extensive road network of. Satish rural infrastructure is crucial for agriculture, agroindustries and overall economic development of rural areas. These issues have not only impacted kenyas ability to realize its development objectives, but also resulted in enormous opportunity costs for both the developers and the communities. Reportsworldwide has announced the addition of a new report title kenya infrastructure aug 2016 to its growing collection of premium market research reports. Kenya in the clean energy, telecommunications, and transportation sectors. Such characteristics include infrastructural development, ease of doing business, economic growth rate, and real effective exchange rate. Pdf infrastructure and healthcare service delivery in tiaty. Infrastructure development, foreign direct investments, return on investment, exchange rate 1. Actual investments in infrastructure total usd 45 billion annually, with more than half funded by. According to world economic forum 2014, welldeveloped infrastructure not only reduces the distance between regions but also integrates national markets and connects them at low costs. Concessioning refers to a contract among the government and private sector for the purpose of pooling of funds for investment in public development projects. The group shares the latest research and points of view on emerging industry trends and develops industryspecific performance benchmarks based upon global best practices. Kenyas massive infrastructure investment presents great opportunities for investors focused on the sector construction material and equipment the ongoing development by kenya airports authority to build a shopping mall, hotel, business zone as well as a commercial passenger terminal at jkia creates an opportunity to provide equipment and.
Pdf in the past decade, infrastructure contributed 0. Kenya envisages a massive upgrading and extension of the countrys infrastructure. Specific objectives of the study included evaluating the current state of transport infrastructure in kenya, examining milestones in kenyas transport infrastructure development in the last decade and determining whether planned transport infrastructure development projects in kenya would enhance regional integration. Bringing kenya s infrastructure up to the level of the regions middleincome countries could boost annual growth by more than three percentage points. Similarly, the acr 2015 noted that insufficient supply of infrastructure in kenya is among the key factors holding back the countrys competitiveness. Ministry of transport, infrastructure, housing urban.
This sector is essential for sustained economic growth, development and poverty reduction. Opportunities kenyas vision 2030 identifies the private sector as key towards developing much needed flagship infrastructure. Other concerns include low levels of access to household services, underfunding of road maintenance, and negative progress on the millennium development goals for water supply and sanitation. Infrastructure and foreign direct investment in kenya munich.
Infrastructure and economic development in kenya prepared and presented by group 9 2. This could be due to factors such as demand for housing by the rising population. Mitsui and inoue, 1995, a sizable number of subsequent studies have reported less than attractive results, thus suggesting a weak link between infrastructure development and economic. Kenya infrastructure, power, and communications kenya has an extensive road network of approximately 95,000 miles connecting most parts of the country. The energy, infrastructure and ict sector is crucial for kenyas economic transformation. Kenya infrastructure, power, and communications, information. Effects of population growth on urban infrastructure and.
Kenya leads in infrastructure development in east africa. Infrastructure s impact on development links to economic growth infrastructure represents, if not the engine, then the wheels of economic activity. Rural infrastructure engineer, following their mission to kenya in may 2007. A revision of the original methodology is currently underway as more data are collected under the auspices of the africa infrastructure knowledge program aikp. Challenges of infrastructure development maryknoll. This report presents the key aicd findings for kenya, allowing the countrys infrastructure situation to be benchmarked against that of its african peers. Based on the results of these studies, to develop an evaluation framework, which includes. However, in order to be sustainable and deliver real benefits to the communities and the environment directly affected, infrastructure projects need good governance, meaningful civil society participation, and real accountability. Africas economic growth and development are intrinsically linked to infrastructure development, but it is the pushpull relationship with commodities that has become the driving force for infrastructure development in the region. Arewa despite recent trends towards robust economic growth in many subsaharan african countries, a number of challenges remain, including those emerging. The international and domestic air transport infrastructure is relatively welldeveloped in kenya.
1523 403 659 352 461 770 572 375 429 16 213 1046 1144 1171 25 492 1376 1143 1151 236 1052 86 344 1354 1243 1039 790 443 1208 1403 1338 839