The Role of Infrastructure in Business: A Kenyan Scenario

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Productivity, welfare and economic prosperity of both rural and urban populations are mostly impacted by the degree of infrastructural advancement in their areas and the infrastructural connections to division, district, county and national centers of government facilities and business. 

Infrastructure is a public input, which plays a vital role in the production process as well as the provision of information. No doubt such facilities and services are vital.

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Infrastructural services share technology economic features such as economies of scale and spillovers from users to non-users and enhance productive capacities of firms within agriculture, commerce, business, industry, and households.

A country’s economic development and welfare of its citizens depend in large part on the level of infrastructure services.

 It plays a central role and is now viewed as a major contributor to growth, poverty reduction and the achievement of the Millennium Development Goals.

When any country neglects the infrastructure the development process it is doomed to stagnate.

Evidence from various studies point out the crucial role infrastructure plays in business growth of the country whereby there is a positive correlation between infrastructure and productivity (Fernald 1999). 

Ineffective rural transport services are a primary impediment to economic and social development in Kenya, where 80% of people live in rural areas. Their development depends on better infrastructure, such as roads, tracks, footpaths, and footbridges.

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Movement of goods, factors of production, tradable resources flock to places where adequate infrastructure is in place.

The productivity, welfare, and security of both rural and urban people in Kenya are greatly influenced by the level of infrastructure development

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