IMPACT OF ROAD TRANSPORT INFRASTRUCTURE DEVELOPMENT ON PERFORMANCE OF TEA PROCESSING FACTORIES IN MURANG’A COUNTY, KENYA

Abstract

The relationship between road transport infrastructure development and the performance of tea processing factories is a crucial and complex matter with global implications. Given the pivotal role of the tea industry in numerous countries' economies, the seamless functioning of the supply chain is paramount for these factories' overall success. In Kenya, the tea processing sector has the potential to play a pivotal role in the nation's economic growth by significantly contributing to the Gross Domestic Product (GDP). However, the sector has faced challenges as its GDP contribution decreased from 10.3% to 7.9% between 2019 and 2021, defying government efforts and the objectives of Kenya Vision 2030. Despite being a focal point in the "Big Four Agenda," the goal of increasing the sector's GDP share to 15% by 2022 remains elusive. To address this pressing issue, this study delved into the impact of road infrastructure development on the performance of tea processing factories in Kenya. It systematically examined the intricate relationships between road network status, connectivity, efficiency, challenges, and the performance of tea processing facilities in Murang'a County, Kenya. Accordingly, the study focused on endogenous growth, development, resource dependence, and institutional theories. In addition, the study used a mixed method approach, and 379 respondents, including managers and workers from tea processing factories, were picked using purposive and simple random sampling techniques. Structured questionnaires and interview schedules were used in data collection, and descriptive and inferential statistics were used in the analysis. The study findings revealed a positive, strong and significant relationship between road network status and the performance of tea processing factories in Murang’a County, Kenya (r=.628, p=.001 at α=.05), a significant moderate positive relationship between road network connectivity and performance of tea processing factories in Murang’a County, Kenya (r=.501, p=.001 at α=.05) and a significant strong positive relationship between road network efficiency and performance of tea processing factories in Murang’a County, Kenya (r=.759, p=.001 at α=.05). Qualitative findings revealed that the challenges facing tea processing factories include; competition from cheap imports and alternative products, energy supply issues, poor ICT skills among tea farmers and poor policies. The study concluded that improving road transport infrastructural development enhances the performance of tea processing factories. The study recommends that both the National and County governments should significantly invest in road network infrastructure, which is vital to improving the performance of tea processing factories. The study contributes to the existing literature by providing empirical evidence of the significant positive relationships between road network status, connectivity, and efficiency with the performance of tea processing factories in Murang'a County, Kenya.