A Quasi-Experimental Evaluation of Cost-Effectiveness in Kenyan Municipal Infrastructure Asset Management Systems

{ "background": "Municipal infrastructure asset management in many developing nations is constrained by limited resources, yet robust empirical evidence on the cost-effectiveness of different management systems is scarce. This gap hinders evidence-based policy and investment decisions for sustaining critical public works.", "purpose and objectives": "This study aimed to quantify the cost-effectiveness of two distinct municipal infrastructure asset management systems implemented in the country: a centralised, technology-aided system and a decentralised, manual system. The primary objective was to determine which system delivers superior asset condition per unit of expenditure.", "methodology": "A quasi-experimental design was employed, matching six municipalities using each system based on population, asset base, and budget. Cost and asset condition data were collected over a multi-year period. Cost-effectiveness was analysed using a generalised linear model: $\\text{Asset Condition Index}{it} = \\beta0 + \\beta1 \\text{System}i + \\beta2 \\ln(\\text{Expenditure}{it}) + \\mathbf{X}{it}\\boldsymbol{\\beta} + \\epsilon{it}$, where $\\mathbf{X}$ is a vector of control variables. Inference was based on cluster-robust standard errors.", "findings": "The centralised, technology-aided system was associated with a statistically significant improvement in cost-effectiveness. For a given expenditure level, municipalities using this system achieved, on average, a 22% higher asset condition index (95% CI: 15% to 29%). The efficiency gain was most pronounced for road and drainage assets.", "conclusion": "The findings demonstrate that the choice of asset management system has a material impact on fiscal efficiency in municipal infrastructure management. Centralised systems leveraging digital tools can deliver substantially better asset outcomes for equivalent financial outlays.", "recommendations": "Municipal authorities should prioritise investment in integrated asset management software and centralised data governance. National policy should support standardised reporting and provide guidance on cost-effective system implementation.", "key words":