Influence of Construction of the First Three Berths at Lamu Port on Local Business Growth in Hindi Town, Lamu County

Abstract

Unlocking the potential of local economies is a pivotal aspect often overlooked when developing large infrastructure projects like the Lamu Port-South Sudan-Ethiopia-Transport (LAPSSET) Corridor project. This study examined the heartbeat of community impact, scrutinizing the correlation between the construction of the first three berths at Lamu port and the growth of local business i.e. micro, small, and medium enterprises (MSMEs). By using a correlational design applying a quantitative approach deploying surveys, the study examined engagement of business owners during planning and execution phases and the influence on their businesses. The influence on businesses was examined in terms of profitability, ease and cost of doing business, changes in market sizes and association of the construction of the port to changes noted. The results were collected from a sample of 55 respondents owning businesses in the town of Hindi. Key findings showed that most businesses recorded positive business growth with only few reporting negative changes but such were correlated to engagement in both planning and execution phases. This correlation was proven to be significant from the factorial ANOVA and regression model done for inferential analysis. The study recommends further inclusion of local businesses in the area of study and other places affected by mega projects during the planning, execution and beyond to operation phases of such projects.