Discussion Paper No 258 of 2022 on The Role of Infrastructure Utilization and Connectivity on Economic Performance in Kenya

Abstract

This study examines the relationship between infrastructure and economic performance in Kenya. Using infrastructure-led theory, the study analyzes the impact of infrastructure connectivity and utilization on agriculture, manufacturing, trade, accommodation, and other sectors. The study finds that while connectivity of water infrastructure was not significant in promoting economic growth, the utilization or quality of water infrastructure was significant in boosting performance in agriculture, manufacturing, and accommodation. Transport infrastructure was also found to have a significant impact on agriculture and manufacturing outputs. Electricity infrastructure needs improvement, and utilization of information communication technology infrastructure was only significant for the accommodation sector. The study recommends reducing the number, time, and cost of property registration and construction processes; investing in ground water mapping and dam construction; upgrading transport infrastructure; and reducing the cost of electricity while enhancing its quality.