Effect of Equalization Fund on the Implementation of Infrastructure Projects in in Marginalized Areas in Garissa County, Kenya

Abstract

The main objective of this study was to assess the effect of equalization funds on the implementation of infrastructure projects in the marginalized areas in Kenya. The theory of fiscal federalism anchored the study. A mixed methods research design was applied. The study targeted 84 county officials drawn from water, education and health departments, 30 elected Members of County Assembly and 6 Commission for Revenue Allocation officials from the Economic Affairs directorate. A census sample for the county officials was taken while the Members of County Assembly and the Commission for Revenue Allocation officials were purposively sampled. The study used primary data and this was collected using a semi-structured questionnaire and interview guides. Qualitative data was analysed using content analysis while for the data obtained from the questionnaires; both descriptive analysis and inferential analysis were conducted. Descriptive statistics to be computed include frequencies, percentages, mean and standard deviation while the Pearson's correlation coefficients and regression estimates formed the inferential statistics in this study. A multiple linear regression model was used to show the relationship between the equalization fund and the implementation of infrastructure projects in the marginalized areas in Garissa County. The study found that equalization fund had an insignificant positive effect on the implementation of these projects. Hence, in order to enhance the implementation of infrastructure projects in marginalized areas within Garissa County, it was necessary that the relevant stakeholders took in to account the role of fiscal transfers and how they could be designed to enhance their effectiveness or efficacy in steering significant infrastructural development.