IDEAS home Printed from https://ideas.repec.org/a/ibf/rbfstu/v5y2014i1p113-126.html
   My bibliography  Save this article

Flow Of Funds For Sustainable Road Maintenance In Kenya

Author

Listed:
  • Daniel Odongo Oronje
  • Charles M. Rambo
  • Paul A. Odundo

Abstract

Kenya established the Road Maintenance Levy Fund in 1993 to finance road maintenance. The Kenya Roads Board is at the centre of the Fund’s administration and accomplishes this by working in collaboration with various implementing agencies. However, through professional experience, we have learnt that the flow of funds to road agencies is inconsistent, due to various factors, which this study aimed at documenting to justify reforms towards sustainable road maintenance. We applied the crosssectional survey design to source information from 146 key informants. The study found that delay in allocation committee meetings (33.0%) and requisition of the Authority to Incur Expenditure (71.3%); lengthy disbursement channel (84.0%), lack of a proper tracking system (47.9%) delay in external auditing (56.4%) and weak financial management system (24.5%) were the key factors constraining the flow of funds. The constraints affected the implementation of work plans (73.4%), maintenance backlog (60.6%) and encouraged procurement malpractices (57.4%), among other issues. The study recommends the need for electronic fund transfer to agency accounts, follow-up communication to track disbursements; enforcement of adherence to provisions of the Public Officer Ethics Act and the Public Procurement and Disposal Act, commercial accounting practices at the agency level and additional audit staff.

Suggested Citation

  • Daniel Odongo Oronje & Charles M. Rambo & Paul A. Odundo, 2014. "Flow Of Funds For Sustainable Road Maintenance In Kenya," Review of Business and Finance Studies, The Institute for Business and Finance Research, vol. 5(1), pages 113-126.
  • Handle: RePEc:ibf:rbfstu:v:5:y:2014:i:1:p:113-126
    as

    Download full text from publisher

    File URL: http://www.theibfr2.com/RePEc/ibf/rbfstu/rbfs-v5n1-2014/RBFS-V5N1-2014-11.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ian Heggie, 1999. "Commercially managed road funds: managing roads like a business, not like a bureaucracy," Transportation, Springer, vol. 26(1), pages 87-111, February.
    2. Heggie, H.G., 1991. "Designing major policy reform: lessons from the transport sector," World Bank - Discussion Papers 115, World Bank.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Antti Talvitie, 2008. "Model, process, technique, and the good thing," Transportation, Springer, vol. 35(3), pages 375-393, May.
    2. Monica Beuran & Gaël Raballand & Julio Revilla, 2011. "Improving Aid Effectiveness in Aid-Dependent Countries: Lessons from Zambia," Documents de travail du Centre d'Economie de la Sorbonne 11040, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
    3. Brenck, Andreas & Beckers, Thorsten & Heinrich, Maria & von Hirschhausen, Christian, 2005. "Public-private partnerships in new EU member countries of Central and Eastern Europe: An economic analysis with case studies from the highway sector," EIB Papers 10/2005, European Investment Bank, Economics Department.
    4. Talvitie, A., 2000. "Evaluation of road projects and programs in developing countries," Transport Policy, Elsevier, vol. 7(1), pages 61-72, January.
    5. Chen, Jiandong & Yu, Jie & Shen, Zhiyang & Song, Malin & Zhou, Ziqi, 2023. "Debt financing and maintenance expenditure: Theory and evidence on government-operated toll roads in China," Economic Systems, Elsevier, vol. 47(1).
    6. Talvitie, Antti, 2018. "Jules Dupuit and benefit-cost analysis: Making past to be the present," Transport Policy, Elsevier, vol. 70(C), pages 14-21.
    7. Monica Beuran & Gaël Raballand & Julio Revilla, 2011. "Improving aid effectiveness in aid-dependent countries : lessons from Zambia," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00611901, HAL.

    More about this item

    Keywords

    Road Maintenance Levy Fund; Kenya Roads Board; Road Maintenance Agency; Sustainable Road Maintenance; Disbursement of Funds; Procurement Gaps and Accountability;
    All these keywords.

    JEL classification:

    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ibf:rbfstu:v:5:y:2014:i:1:p:113-126. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Mercedes Jalbert (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.