CHALLENGES AFFECTING INVESTMENT IN PUBLIC TRANSPORT (MATATU) INDUSTRY IN NAIROBI-KENYA
Transport is very crucial for economic development of any nation because the industry has a significant effect on the economic growth and development of a nation and major investments are channeled through the industry. However, in Kenya studies have shown that public transport is not efficient thus not attractive to investors enough to fill the gap between the required investment levels versus the current status which is low, characterized by high costs on fares and uneven costs on daily commuters using the public transport means. This study seeks to establish the challenges facing investment in public transport industry in Nairobi, Kenya. The specific objectives are to establish the effect of government regulations on investment in public transport in Kenya, to find out how profitability of the transport industry affects investment in public transport, to find out how access to adequate financing affects investment in the public transport industry and to establish how cartels in the transport industry affect the investment in public transport industry in Kenya. The study adopted a cross section survey design. The target population for this study was the owners of passengers’ service vehicles for public transport in Nairobi. Using simple random sampling, a sample size of 100 respondents was selected to respond to the questionnaires for primary data collection. Descriptive statistics and regression analysis was used to analyze data. SPSS version 21 was used to process the data to come up with summary tables and the results that have been subjected to regression analysis. The study findings showed that government regulations, profitability of the industry and access to finance contributed significantly and positively to investment in public transport industry whereas effects of cartels in public transport contributed negatively to investment in public transport industry.Key Words: Challenges, Investments, Public Transport
All Africa News (2012). Kenya: Calls for Government to Fund Public Transport Industry. Retrieved from http://allafrica.com/stories/201202030675.html
APEC Economies (2002). Realising the benefits of trade facilitation, A report prepared for the APEC Ministerial Meeting, Mexico: Los Cabos,.
Babbie, E. R. (2010). The Practice of Social Research, twelfth edition. California: Wadsworth-Cengage Learning.
Bryman, A. & Bell, E. (2003). Business research methods, second edition. New York: Oxford University Press, Inc.
Bryman, A. (2008). Social Research Methods, Third Edition. Oxford: Oxford University Press.
Chitere, P. O. and Kibua, N. T. (2004). Efforts to improve road safety in Kenya Achievements and limitations of reforms in the Matatu industry. Paper prepared on IPAR Policy Brief on the Matatu Industry in Kenya. IPAR.
Churchill, G. A. & Iacobucci, D. (2009). Marketing Research: Methodological Foundations, Tenth edition. Mason, OH: South-Western Cengage Learning.
Estache, E. and de Rus, G. (2000). Privatization and Regulation of Transport Infrastructure. Washington DC: World Bank.
Galliers R. D. & Leidner D. E (2003). Strategic Information Management: Challenges and strategies in managing information systems.3rd edition. Jordan Hill, Oxford: Butterworth-Heinemann.
Gichuki, M. T. (2012). Role of financial management practices in the performance of public service vehicle savings and credit co-operative societies in Kenya. Thesis paper submitted to the department of Accounting and Finance, school of Business, Kenyatta University. Accessed online at: http://ir-library.ku.ac.ke/etd/handle/123456789/5113.
Heseltine, P.M. and Silcock, D.T. (1990). The effects of bus deregulation on costs. Journal of Transport Economics and Policy, 24(3): 239-254 .
Khayesi, M. (1999). The struggle for regulatory and economic sphere of influence in the Matatu means of transport in Kenya: a stakeholder analysis. Paper presented to the Sixth International Conference on Competition and Ownership in Land Passenger Transport, Cape Town, South Africa on 19-23 September 1999.
Mugenda, O. M. & Mugenda, A. G. (2003). Research Methods: Quantitative & Qualitative Approaches. Nairobi: ACTS.
Mukabanah, E. M. (2008). Kenya Bus Services Ltd – Why It Collapsed. Nairobi Bus Rapid. Transit Concept Paper - Draft Input. Retrievedfromhttp://www.kenyabus.net/uploads/downloads/KBS_Collapse.pdf
Mulumby, P. (1998). Confusion as Matatu Touts Cause Disorder Over Route, Moran Raid. The East African Standard (Nairobi), pg. 21, col. 2.
Muune, C. (1998). The Root Cause of Matatu Violence. Sunday Nation (Nairobi), 27/12/1998, pg. 4, col. 1.
Odero, W., Khayesi, M. and Heda, P. M. (2003). Road traffic injuries in Kenya: Magnitude, causes and status. Injury Control and Safety Promotion, 10 (1-2)
Olsen, C. & Marie, D. G. (2004). Cross-Sectional Study Design and Data Analysis. Retrieved on from http://www.collegeboard.com/prod_downloads/yes/4297_MODULE_05.pdf
Peters, H.J. (1993).The maritime transport crisis. World Bank Discussion Paper 220. Washington DC: World Bank.
Raballand, G. and Macchi, P. (2008). Transport Prices and Costs: The Need to Revisit Donors’ Policies in Transport in Africa. Paper presented to the World Bank. Retrieved from http://ipl.econ.duke.edu/bread/papers/0809conf/Raballand.pdf
Republic of Kenya (1995). Oral Questions, Question No. 1080: Size of Nyayo Bus fleet in Kenya National Assembly Official Record (Hansard) 5 Dec 1995. Pp.2921-2922.
Republic of Kenya (2009). Integrated national transport policy: Moving a working nation. Report by the Ministry of Transport. Nairobi.
Republic of Kenya (2010). Integrated national transport policy. Sessional paper in the Ministry of Transport. Nairobi: MoT.
Rubin, A. & Babbie, E., R. (2009). Research Methods for Social Work. Belmont, CA: Books/Cole, Cengage Learning.
Salon, D. and Shewmake, S. (2011). Opportunities for value capture to fund public transport: A comprehensive review of the literature with a focus on East Asia. ADB and ITDP report.
Sinha, S. and Fiestas, I. (2011). Literature review on the constraints to investment in developing countries. Department for International Development Report , February 2011. Nathan Associates Inc., Emerging Market Economics.
Sohail, M., Maunder, D.A.C. and Cavill, S. (2006). Effective regulation for sustainable public transport in developing countries. Transport Policy, 13(3), pp. 177-190.
Stares, S. & Liu, Z. (1997). China's Urban Transport Development Strategy: Proceedings of a symposium in Beijing, November 8-10, 1995. World Bank Discussion Paper No. 352, East Asia and Pacific Region Series. Washington, DC: World Bank.
Thoopal, R. K. (2000). Railway pricing and charges. ESCAP Regional Seminar on Transport Pricing and Charges for Promoting Sustainable Development, New Delhi, December 2000.
TradingEconomics (2012) Investment in transport with private participation (US dollar) in Kenya, online article retrieved from http://www.tradingeconomics.com/kenya /investment-in-transport-with-private-participation-us-dollar-wb-data.html
Weisbrod, G. & Reno, A. (2009) Economic Impact of Public Transportation Investment, Paper prepared for the American Public Transportation Association. Retrieved.http://www.apta.com/resources/reportsandpublications/Documents/ economic_ impact_of_public_transportation_investment.pdf
Wright, A. A. (1993). Public transport in third world cities. TRL State of the Art Review, No. 10. Crowthorne: TRL.
Wright, A. A. and Thiriez, S. (1987). Bus services: reducing costs, raising standards. World Bank Technical Paper 68.Washington D.C.: World Bank.
Yamane, T. (1967). Statistics: An Introductory Analysis, 2nd Ed., New York: Harper and Row.
- There are currently no refbacks.