Risk Management Strategies and Performance of National Government Constituency Development Funds Projects in Ruiru Constituency, Kenya
Loading...
Date
2025-10
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Kenyatta University
Abstract
Kenya's national government's constituency development fund is one of example of projects which are launched with the goal of fixing particular difficulties or fulfilling community needs. The CDF tries to devolve national resources to the community level in order to foster economic development, which would contribute to overall national economic growth and poverty elimination. According to research, a substantial portion of Kenyan counties are experiencing appalling project performance from constituency development fund initiatives. This study addressed the influence of risk management strategies on the performance of National Government Constituency Development Fund (NG-CDF) projects in Ruiru Constituency, Kenya. Four specific objectives served as the research's guide: to determine the effect of risk acceptance, risk transference, risk avoidance, and risk reduction on the performance of NG-CDF projects. The study was anchored on Prospect Theory, Enterprise Risk Management Theory, Portfolio Theory, and the Theory of Constraints. The study adopted a descriptive design targeting 53 firms with a total of 371 respondents drawn from key departments, including Production, Information Technology, Procurement and Supply Chain, Quality Control, Finance, Marketing, and Human Resource/Administration. A stratified random sampling strategy was applied to guarantee representation across departments following a sample size of 193 respondents was established using Yamane's formula. Primary data was collected through structured questionnaires, which were pretested for validity and reliability attaining a Cronbach's alpha value greater than 0.7. Regression analysis and other descriptive and inferential statistics were used to analyze the data. The results showed that risk management techniques and project performance were significantly positively correlated. Specifically, risk reduction and avoidance had the most substantial impact, while risk acceptance was least effective. The study concluded that effective risk management strategies enhance project success by minimizing uncertainties and improving financial and operational efficiency. It recommended that NG-CDF committees should adopt structured risk management frameworks, enhance stakeholder training, and leverage technology for real-time risk assessment. The study adds to the body of knowledge already available on risk management in public projects and offers stakeholders, project managers, and policymakers’ helpful recommendations on how to maximize risk strategies for better project performance
Description
A Research Project Submitted to the School of Business, Economics, and Tourism in Partial Fulfillment for the Requirements for the Award of Degree of Masters in Business Administration (Project Management) of Kenyatta University, October, 2025
Supervisor;
1.David Nzuki