Analysis of Methods Used To Finance Development Projects in secondary Schools:A Case Study of Schools in Nakuru Municipality

Abstract

Demand for secondary school education has grown at a remarkable pace due to increase in population among other factors. With the emergence of free primary education, it is expected that additional facilities in secondary schools would be needed due to the increase in demand. This study analyzed methods of financing secondary school development and focused on three areas: fees charged, implementation period and efficiency and effectiveness. Specifically, effectiveness and efficiency of financing methods was assessed and the effect of both financing method and implementing period on fees charged determined. An aggregate measure of efficiency and effectiveness called implementing coefficient was developed and used. Hypotheses that financing method does not influence implementing coefficient and fees charged were tested by means of Analysis of Variance (AN OVA). Fees were modeled as a function of variables of the project including cost per student, implementing period, collection efficiency, and status of the scholar. Regression analysis was used to test the hypothesis that implementing period does not lead to increases in fees paid by students. Using a data set of 65 completed projects spanning ten years the results showed no significant difference in efficiency and effectiveness of financing methods surveyed and that these financing methods did not influence fees charged. The result also indicate that cost per student, implementation period and status of scholar positively influenced the fees charged with the resulting equation supporting postulated causal relationships since it accounts for 66.9% of the fees charged. The findings suggest that for fees to be at considerably low levels, managers of secondary schools should reduce implementing period and improve collection efficiency for whichever financing method used to finance development projects.