Transport is a key variable in the growth of the Kenyan economy. With such a rapid increase in urban population, there has been an increase in demand for mobility, and with it, an increase in motorized vehicle ownership. Much of the developing world is experiencing rapid economic growth. Motor vehicle fleet is increasing at a rapid pace in many cities around the world creating an infrastructure backlog and imposing constraint on economic development. The general objective of this study was to assess the effect of the motor vehicle congestion on the economy of Kenya. A case study was  made of Nairobi City County. The objectives of the study was to establish the effect of transport infrastructure and Government Policy on the economy as influenced by traffic congestion in Nairobi County. The study was limited to the residents of Nairobi County. The study targeted city county planners, city county traffic office and city economic and finance office. The study was targeting the years between 2011 and 2013.The Study used the descriptive research design.The study population were respondents from city county planner’s office, city county traffic office and city economic and finance office which had 108 respondents and sample size of 54 which is 50% of the total target population. Stratified random sampling was used as a sampling design then simple random sampling to ensure that all the subgroups were included in the study. The data collection instrumentused was the questionnaire. Then data wasanalysed by use of the tables, and pie charts, that are qualitative in nature.The study concluded that motor vehicle congestion has a direct effect on the economy of Kenya. The research concluded that the lost man-hours due to people sitting in traffic was causing a slowdown in the economy’s growth and that investors are relocating because of the high cost of labour in Kenya. The study re affirmed the importance on public transport to the Kenyan economy and that it is the nerve center that holds it together, however it is poorly managed and governed and thus the stakeholders need to come up with better strategies to make it viable.

Key Words: Motor Vehicle, Congestion, Economic Performance

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