Contractor Capacity and Inffrastructure Project Performance: Evidence from Road Construction Projects in Nairobi City County, Kenya

Stella Wamaitha Wahuga and Lucy Ngugi
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Stella Wamaitha Wahuga: Department of Management Science, School of Business, Economics and Tourism, Kenyatta University, Kenya.
Lucy Ngugi: Department of Management Science, School of Business, Economics and Tourism, Kenyatta University, Kenya.Department of Management Science, School of Business, Economics and Tourism, Kenyatta University, Kenya.

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Abstract: Research on project performance underscores the importance of meeting cost and schedule targets to ensure successful and quality outcomes. In Kenya, a significant 56% of road construction projects suffer from cost overruns, delays, and subpar results. This study focuses on Nairobi City County and examines how contractor capacity—specifically financial, technical, managerial, and regulatory compliance—affects road construction project performance. The primary objective was to investigate the relationship between contractor competence and the execution of specific road projects. The study aimed to benefit government agencies, private contractors, and public stakeholders involved in road development. It employed a descriptive research design targeting five major road projects in the county. Respondents included engineers from the Ministry of Roads, Kenya Urban Roads Authority (KURA), technical auditors, and contractor consultants, totaling 75 professionals. Data collection was done via questionnaires, and the analysis utilized both descriptive statistics and inferential methods, such as correlation and multiple linear regression. The analysis revealed an R-square value of 0.727, indicating that 72.7% of variations in project performance could be explained by contractors' financial, technical, organizational, and regulatory capacities. The remaining 27.3% were influenced by other factors. Key recommendations include enhancing technical capacity through modern training and technology, strengthening financial and organizational structures, and ensuring full regulatory compliance. The study suggests future research should explore the impact of technological advancements, financial models, leadership dynamics, regulatory frameworks, and conduct broader geographic comparisons to improve the understanding and outcomes of road construction projects.

Date: 2025-06-07
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Published in Asian Journal of Economics, Finance and Management , 2025, 7 (1), pp.517-531. ⟨10.56557/ajefm/2025/v7i1292⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-05105063

DOI: 10.56557/ajefm/2025/v7i1292

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