Research Paper
Year: 2022 | Month: October | Volume: 9 | Issue: 10 | Pages: 387-404
DOI: https://doi.org/10.52403/ijrr.20221045
Effect of Public Private Partnership on Financial Sustainability of Nzoia Water Services Projects in Kenya
Isack Achiela Otieno1, Dr. Julius Miroga2
1MBA (Finance Option) Student, School of Business of Jomo Kenyatta University of Agriculture and Technology, Kenya
2Lecturer, Jomo Kenyatta University of Agriculture and Technology, Kenya, Kitale Campus
Corresponding Author: Isack Achiela Otieno
ABSTRACT
The study sought to determine the effect of Public Private Partnership on Financial Sustainability of Nzoia Water Services Projects in Kenya. The general objective of the study was to assess the effect of Public Private Partnership on Financial Sustainability of Nzoia Water Services Projects in Kenya. Specific objectives included to determine the effect of Leasing finance on Financial Sustainability of Nzoia Water Services Projects in Kenya and to determine the effect of Concessions finance on Financial Sustainability of Nzoia Water Services Projects in Kenya. The study employed descriptive survey research design, through the administration of semi- structured questionnaires. The target population was one finance respondent in Nzoia Water Services Company (Finance Manager, Senior Accountant, Finance Officer, Accounts Clerk and Internal Audit Manager) from each water treatment works namely Nabuyole, Matisi, Kapkateny, Chesikaki, Terem and Nzoia. The total target population for the study was 30 Finance respondents. The instrument was piloted to water projects implemented in Trans Nzoia County for the period 2016- 2021. Data collected was coded, keyed in the computer and analyzed with the aid of the Statistical Package for Social Science (SPSS version 26) computer software for Windows. Leasing Finance had a positive correlation of 0.724 The p value (0.000) < 0.01 indicating an increase in PPP if maintained while Concessions Finance had a positive correlation of 0.527 with p value (0.000) < 0.0. The findings showed that leasing was statistically and positively significant in determining financial sustainability of Nzoia Water Service Projects in Kenya while Concession was negatively significant. The results depicted that there was no multicollinearity because the VIF values were less than 10. The researcher recommended that management of water bodies in Kenya need to adhere to policies concerning water project enactments to increase water supply in regions. The financial aspect should keenly be audited to avoid the problems of water projects failure. Further, the study recommends that the Nzoia water project boards should ensure the implementation of the PPP reforms that will help in enhancing concessions and greater cooperative arrangements among water projects in Kenya. Finally, area for further research can be conducted using the adoption of PPP in other geographical areas especially in the Northern part of Kenya
Keywords: [Financial Sustainability, Public Private Partnership, Leasing Finance, Concession Finance]
[PDF Full Text]