Influence of economic stimulus projects on employment creation: a case of north Imenti constituency, Meru county, Kenya

Abstract

The Economic Stimulus Program (ESP) was started to jump start the Kenyan economy towards long-term growth and development after the post election violence of 2007/2008that affected the Kenyan economy. The main objective of ESP was to expand economic opportunities in rural areas for employment creation, to boost the country`s economic recovery, invest in long-term solutions to the challenges of food security, invest in conservation of the environment, expand access to, and build the ICT capacity of the Kenya people; improve infrastructure and the quality of education and health care for all Kenyans, and to promote regional development for equity and social-economy. The purpose of this study was to investigate the influence of economic stimulus programme on employment creation in Kenya taking the case of North Imenti Constituency. It is therefore imperative to determine whether the funds is achieving the objectives of setting it up or not and propose the steps to be undertaken to improve the situation. One way of fighting poverty is through employment creation. This study therefore sought to study the influence of ESP towards employment creation in Kenya. The investment programme for Wealth and Employment Creation 2003-2007, has been the blue print for national development. The data was collected using questionnaires, interview and observing people. The data was analyzed using statistical package for social sciences (SPSS V. 21) computer program and was presented using frequency distribution tables and percentages. The study found that ESP projects infrastructures has the highest effect on employment creation, followed by ESP project enterprises, then Social capital in ESP projects having the lowest effect on the employment creation. The objectives of the ESP initiatives are to stimulate the economy through public works programme and create employment opportunities. The study deduced that there is a positive relationship between Enterprise type and employment creation. The stimulus programme is deliberately designed to cover all parts of the country as a bold step to address the existing imbalances in regional development. The study further deduced that there is a positive relationship between social capital and employment creation. The study recommends that there is a need to develop more entrepreneurial graduates using a more enterprising approach to learning, which is student centered, action and process orientated rather than traditional. The study recommends that universities should develop tutorial contact time as well as project work, which is supervised by members of the academic team. More markets should be opened up, more teachers should be trained and more fish ponds should be constructed, develop more jua kali sheds in the constituency, employ more staff, more funding for payment of employees. Further, small firms should embrace creative advertising as with creative marketing and booth design, small businesses can actually appear as substantial as much larger corporations.