INFLUENCE OF PROJECT FINANCE STRUCTURING ON SUSTAINABILITY OF SPECIAL ECONOMIC ZONE PROJECTS IN KENYA

Objective: To determine the influence of project finance structuring on sustainability of Special Economic Zones in Kenya. Theoretical Framework: The study was grounded on Triple Bottom Line and agency theories to analyze how project finance structuring influence economic, social, and environmental sustainability of Special Economic Zone projects. Method: The study was framed within a positivistic research paradign and cross-sectional survey design was used. Target population was 64 Special Economic Zone projects within 12 Special Economic Zones in Kenya. Data collection was carried out through structured questionnaires. Using a quantitative approach, data were analyzed through correlation and regression techniques, with reliability and validity tests ensuring data collection tools quality. Results and Discussion: The results revealed a statistically significant and moderately positive relationship between project finance structuring and sustainability of SEZ projects. Regression analysis demonstrated that project finance structuring accounts for approximately 28.3% of the variance in sustainability outcomes. Limitations related to the study’s explanatory power and the omission of other influencing factors are acknowledged. Research Implications: Practically, the findings guide SEZ policymakers, financiers, and project managers in designing more sustainable finance models. Theoretically, the study enriches existing literature by integrating Agency and TBL theories to explain the structural underpinnings of SEZ sustainability. Impacted areas include public infrastructure planning, private sector investment, and sustainable development policy. Originality/Value: This study adds empirical evidence to a limited body of knowledge on SEZ finance structuring in emerging economies. It advances theory and practice by demonstrating how financial structuring influences sustainable development in the SEZ context.