Risk Management Strategies and Performance of Projects in Non-Governmental Organisations in Nairobi City County, Kenya

Abstract

Non-governmental organizations have helped in Kenya's economic development through various projects such as complementary relief services, educational programmes, child welfare, and health services. However, several examples exist that show poor performance by projects run by these NGOs. Key among the touted problems leading to the poor performance has been the risks undertaken in running the projects. This study sought to determine the role of risk management practices on the performance of non-governmental organizations projects within Nairobi City County. The study also sought to find out the effect of Risk avoidance, Risk sharing, Risk reduction and Risk retention on the performance of non-governmental organizations projects in Nairobi City County. The study focuses on the stakeholder theory, supported by the theory of resource-based view and agency theory. To accomplish the objectives descriptive approach research design sufficed, and random stratified sampling aimed at 110 projects run by NGOs, as indicated in the 2018/2019 KNGOB report. Project officers at the NGOs acted as the key respondents while the unit of analysis was performance of the NGO projects. Data collection utilised a structured questionnaire administered mainly using online approach in the face of covid-19 health restrictions with a response rate of 84 out of the targeted 110 projects. Descriptive and inferential statistics were used in finding field results. Through regression analysis with a linear model result showed a strong relationship between risk management strategies and project performance. The resulting value of regression coefficient at .000 (p<0.05) indicated existence of relationships that were relatively strong. The study thus concluded that performance success of projects is dependent on the careful choice or selection of risk management strategies. It is expected the results will benefit various stakeholders, including the government policy makers, NGO sector players, and academia. These study findings additionally boost the body of knowledge of NGOs, project performance, and risk management strategies with related theories. Further studies exploring more strategies to manage risks as well as projects in other entities including urban, rural and County sectors could be undertaken by scholars