Growth and distributive effects of transport infrastructure investments in Kenya

This paper seeks to contribute to a better understanding of the link between transport, growth and income distribution among household groups in Kenya by analysing the following questions: to what extent would transport infrastructure expansion affect the development of the economy and what household group is likely to benefit and by how much of additional investment in transport infrastructure? Results indicate that transport expansion has positive effects on the Kenyan economy. Results further show that transport expansion adversely affects certain sectors in the short run. However, the negative effects gradually decline over time and positive effects become increasingly large. Overall, the economy gains from increased transport investments in the long run impact.