Abstract:
The provision of public utilities in developing countries is both essential and
controversial. The responsibility of providing these utilities generally lies at
the door of the government, although different options of provision are possible.
The state, private sector or a combination of the two could provide it. The literature
behind these different options will briefly be reviewed. From the literature it is evident that the choice of who should provide these utilities are not clear-cut.
A case study of Kenya will also show the difficulties experienced by developing
countries in choosing the most efficient option. Efficient provision is generally a
concern based on the financial constraints in most developing countries. The aim
of the article is to apply different ways of financing public utilities (provision of
road construction and maintenance) and measure the effects thereof on the economy
of Kenya.
