AN ANALYSIS OF HOW THE PRICING INSTRUMENT POLICIES AFFECT THE PERFORMANCE OF TRANSPORT SERVICES IN NAIROBI METROPOLITAN
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Abstract
Transport services contribution to the Kenyan economy is widely acknowledged, they cut across all sectors of the economy and provide many employment opportunities and generate widespread economic benefits. Considering the immense contribution of transport in economic growth, a reduction in transport cost is expected to spur economic growth and create a favorable business environment for Small and Medium enterprises. This study investigated how the Pricing instrument policies affect the performance of transport services in Nairobi Metropolitan. 384 participants ware sampled and 260 responded amounting to 67.7 percent response rate. Descriptive correlational study design was applied. Multiple regression model showed that there was a significant relationship between performance of the transport services sector and the policies implemented by the city management where multiple determinations coefficient of 0.056 displayed that infrastructure investment policies, price instrument policies and license procedures policies independent variables lead to 56 percent in performance of transport services in Nairobi Metropolitan Services. These findings support the fact that policy development and implementation in the transport sector affect the business organizations operating in the sector. Therefore, policy formulation or development, changes to the transport sector can only be realized when the policies are implemented appropriately. Therefore, this study recommended and encouraged effective policy implementation in the NMS and ensure that transportation services policies are implemented appropriately to make huge difference in the transport business sector. However, more research is needed using different methodological approaches to quantify the impacts of policies in the sector on growth and development. Other studies can examine how these policies affected other organizational outcomes, such as customer satisfaction and stakeholder wealth maximization to improve the quality of services offered in the transport sector.
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