Institutional influence on sustainability of world bank funded projects in kenya

Paul Sang., Nelson Wawire., Charles Ombuki and Stephen Muathe

The World Bank has supported Kenya in financing development projects in transport, energy, water, urban development, health, public sector management and social protection since 1960. By November 2011, it had financed more than 175 projects with a total investment of over US$ 7,070 billion. Sustainability of the funded projects is of utmost importance if the impact of funding these projects is to be realized. Despite project feasibility studies being done prior to commencement of the projects, sustainability is still not guaranteed. This study investigated the influence of institutional factors on sustainability of World Bank funded projects in Kenya. The study adopted both cross-sectional and explanatory research designs. The targeted projects were all projects funded between the years 2000 and 2012, the period was considered appropriate because, typically,
international development projects last from three to ten years. The study targeted 65 respondents of which 51 successfully filled and returned the questionnaires. The respondents comprised of project managers of the implementing organization and officials from the National Treasury in charge of monitoring the donor funded projects in Kenya. Data was collected by use of structured and semi structured questionnaire then analyzed using both descriptive and inferential statistics. Principal component analysis was
carried out using factor analysis method to establish the most critical factors among the ones identified, and Logit regression analysis was used to determine the influence of various institutional factors on sustainability of World Bank funded projects in Kenya. Prior to Logit regression analysis, multi collinearity test was carried out to determine whether the identified variables were correlated. Content analysis was done for open ended questions. The results of the study established that the coefficients of stakeholder involvement and obligation were significant and thus these factors increase the likelihood of project sustainability if taken into consideration. It was recommended that the World Bank should ensure that the project documents capture sustainability as one of its key criteria for approval for project funding. The government of Kenya through the National
Treasury should ensure that a plan to include all stakeholders and clarify their obligations in project sustainability is in place before releasing the funding for the project.

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