THE LOCAL ECONOMIC IMPACTS OF RAILWAYS: KENYA'S STANDARD GAUGE RAILWAY (SGR)

Abstract

The interest of transportation economists is how to solve the economic problems of the movement of goods and people. Transportation has long been recognized as a vital determinant of the location of economic activity and therefore a policy tool for economic development. This study, hence, focused on Phase 1 of Kenya's SGR to examine its impacts on employment as well as its effects on land and property values. The study sampled 399 respondents through questionnaires and 30 through interviews, using a mixed research approach and a descriptive research design. From the data, the SGR project in Kenya has mixed economic effects. SGR generated enough direct and indirect jobs for Kenyans. However, there was widespread dissatisfaction with the level of local participation in the management and operations of the SGR, as well as the caliber of jobs offered to Kenyans. As the number of qualified Kenyans increases, so should their involvement in SGR operations. Indisputably, SGR represents the modernization and growth of Kenya's transport industry and society as a whole.