A Study On The Use Of Road Pricing To Generate Main Tenance Revenue And Reduce Traffic Congestion On Thika High Way.

Abstract

The objective of the study was to determine an indicative road pricing charge that can be used to generate revenue for the maintenance of the Thika Highway. An exploratory research design was adopted since the concept of road pricing is fairly new in Kenya. Secondary sources of data were mainly used in this study. They included motor vehicles registration database, government ministry reports, surveys and interviews with professionals in the field. Data was analyzed using Statistical Packages for Social Sciences (SPSS) version 11. Regression and correlation analysis was used to determine the nature and the strength of the relationship between the independent and dependent variables. Based on the regression and correlation analysis of each of the variables involved in the study, the findings indicated that the introduction of road pricing has the potential to generate revenue for the maintenance of Thika Highway. This is well illustrated by the existence of a strong correlation between the level of road pricing fees charged and the revenue generated. It was established that maintenance costs, operating costs and congestion charges would positively influence the revenue realized from road pricing. This would imply that as more costs of this form are incurred, higher fees in the form of road prices should be charged and this would lead to increased revenue. However, controllable costs like operating costs, including equipment and administration costs should be properly monitored to minimize the overall effective costs passed on to the motorists. The study showed that the introduction of measures that discourage congestion on roads should be used to minimize the fees charged on motorists plying the highway. The overall regression results showed that passenger car units had a negative influence on the price charged on motorists using Thika Highway. This would imply that as more passenger car units are introduced on the highway, the price charged on motorists decreases. The study also showed that the inclusion of a congestion fee in the road pricing charge can be used to control the volume of motor vehicles on the road, thereby offering a solution to traffic congestion.