This study focuses on evaluating municipal infrastructure asset systems in Kenya, aiming to assess their effectiveness in reducing risks associated with these assets. The study employs econometric techniques, specifically a fixed effects model (FE) with clustered standard errors to estimate the impact of municipal infrastructure assets on reducing risks over time in Kenya's municipalities. Panel data analysis revealed that municipal investment in water supply systems significantly reduced risk exposure by 15%, indicating substantial benefits from targeted investments. The findings support the efficacy of using panel data for measuring risk reduction in municipal infrastructure, with specific results showing a notable impact on water supply system risks. Based on these insights, policy recommendations suggest increased investment in critical municipal infrastructure assets to further mitigate risks and improve overall resilience. The maintenance outcome was modelled as Y₈ₓ=₀+₁X₈ₓ+uᵢ+₈ₓ, with robustness checked using heteroskedasticity-consistent errors.
Ochieng Wambugu (Tue,) studied this question.