Project Management Dynamics and Performance of Kenya Electricity Generating Company Projects
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Date
2023
Authors
Njenga, Simon Theuri
Journal Title
Journal ISSN
Volume Title
Publisher
Kenyatta University
Abstract
Kenya continues to face challenges regarding actualization and timely implementation of electricity generation projects aimed at increasing electricity capacity required in the quest for attaining industrialization status by year 2030. Out of the projected flagship electricity generation projects, less than 20 percent of the projects had been translated into the national grid by the end of year 2022. For instance, out of the 105 Mega watts exploited geothermal steam potential in Menengai fields and three earmarked and awarded generation projects targeted for completion by year 2019, no electricity generation project had been initiated and connected to the national grid by end of year 2022. Such trends calls for an in-depth study of project dynamics that determine the performance of electricity generation projects. To research the problem, focus was given to Kenya Electricity Generation Company (KenGen) Plc which is a state-owned electricity generation company accounting for 60 percent of electricity generation market share in Kenya. The purpose of the study was to determine the project management dynamics that determine performance of electricity generation projects. Specifically, the study sought to evaluate the influence of project financing, project procurement, organization dynamics, individual dynamics and stakeholder management dynamics on performance electricity generation projects in KenGen. The study was anchored on system theory, constraints theory, and competence theory of project management. The earmarked population was 10 electricity generation projects implemented by sixty-eight employees who had formal project management appointment in the power plant construction projects , that ranged from hydroelectric, geothermal, thermal and wind generation modes. Due to the limited size of the population, census survey method was proposed targeting the sixty eight respondents. Sixty four participants responded to the survey. Information collection was through questionnaires administered to the respondents. Descriptive and inferential statistics were used to analyse the data. Multiple regression analysis was used to determine the relationship between the variables. The study established that all the independent variables had positive regression coefficient, indicating that unit rise for each independent variable facilitated a consequent rise in the dependent variable. However, only finance dynamics revealed statistically significant effect (βI= 0.532, p = -0.001 and less than 0.05), indicating that project finance dynamics had a significant effect on performance of electricity generation projects. The study recommended that priority should be given to finance dynamics while scoping the electricity projects, above other project dynamics. Financial analysis of the project financier’s capacity to ensure uninterrupted project milestones financing was identified as an aspect requiring consideration in project financing. This outcome will be helpful to stakeholders in energy sector, academicians and electricity projects financiers. Suggestions were made for further studies on other financial dynamics not accounted in the study as well as non- financial dynamics that were not established to bear significant effect on generation projects.
Description
A Research Project Report Submitted to the School of Business, Economics and Tourism in Partial Fulfillment of the Requirement for the Award of Degree of Masters in Business Administration (Project Management) of Kenyatta University
Keywords
Project Management Dynamics, Kenya Electricity Generating Company Projects