INFLUENCE OF ACCESS TO CREDIT AND LOAN FACILITIES ON THE BUILDING CONTRACTORS’ PERFORMANCE IN INFRASTRUCTURAL DEVELOPMENT IN NAKURU COUNTY, KENYA

Abstract

The Construction industry has been the bedrock of social and economic development in our country for the past
15 years. Construction has spurred as well as facilitated economic growth through the development of
infrastructure projects countrywide. According to National Construction Authority, the Construction Industry is
one of the main engines of performance in any economy and Building contractor’s performance in
infrastructural projects is one of the important economic activities that contribute towards the economic growth
of the nation. The objective of the study to establish how access to credit and loan facilities influence on the
performance of building contractors in infrastructural development in Nakuru County. A sample of 219
participants was selected from a population of 511 registered building contractors in Nakuru County. From the
219 questionnaires administered to building contractors, 157 were properly filled and returned. A questionnaire
was used to collect data. Data was analyzed by using the Statistical Package for Social Sciences (SPSS). From
the study, it was concluded that building contractors, face a lot of challenges in accessing finances for their
business both as running capital and for expansion of the businesses. This is because of many factors which
make their businesses less attractive and risky in terms of lending. It is expected that improved access to loan
and credit facilities to building contractors can lead to higher performance in infrastructural development.
Delayed payments from clients on construction projects are considered to be a factor of significant concern
which can cause financial problems to building contractors. It is expected that improved relationship between
building contractors and client plus the technical team will lead to higher performance of building contractors
in infrastructural development.