Effect of Fuel Pricing Mechanism on Community Livelihood in Isiolo County, Kenya

Abstract

The study aimed to investigate the influence of inflation rate, international fuel prices, automatic fuel pricing mechanisms, and changes in fuel tax revenues on community livelihood in Isiolo County, Kenya. The study was conducted in Isiolo County, located in northeastern Kenya. The study adopted a quantitative research approach. It utilized multiple regression analysis to examine the relationship between the independent variables on the dependent variable. Primary data was collected through questionnaires and secondary data was collected from EPRA. The primary data focused on a sample of 379 households. Statistical analysis was used to assess the significance of these factors on community livelihood. The study revealed that the independent variables considered explained approximately 47% of the variability in community livelihood. However, none of the independent variables were found to be statistically significant predictors of community livelihood at the conventional significance level of 0.05. The results suggests that these specific economic factors may not have a significant relationship with community livelihood in Isiolo County. The research contributes to the understanding of the complex relationship between economic factors and community livelihood in a rural context. While the study did not identify significant predictors among the specific economic variables analyzed, it emphasizes the importance of employing a more comprehensive approach to study the wellbeing of rural communities. The findings provide valuable insights for policymakers and researchers aiming to enhance community livelihood and design targeted interventions that account for the unique challenges faced by communities in Isiolo County.