Project Risk Management Strategies and Project Performance in Kenya Power in Nairobi City County, Kenya
Loading...
Date
2024-11
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Kenyatta University
Abstract
Project performance is a prevalent concern, with quality failures leading to additional expenses ranging from 2 percent to 12 percent of project expenditures. Additionally, rectifying quality issues contributes to around 3.4 percent to 6.2 percent of project costs. The primary intent of the study is to ascertain the effect of project risk management practices on the performance of projects at Kenya Power and Lighting Company in Kenya. This research aimed to investigate the effect of risk avoidance strategy, risk reduction strategy, risk transfer, and risk retention strategy on project performance at Kenya Power and Lighting Company. The research was informed by the principles of Enterprise Risk Management (ERM), the Theory of Constraints, and the Theory of Uncertainty. This inquiry used a descriptive research approach. The research population entailed project managers employed by Kenya Power in the Nairobi area. The research participants were selected utilizing a stratified random sampling procedure. Last-mile connection, smart metering, automated street lighting, and mwangaza mtaani projects made up the stratus. Subsequently, a total of 147 individuals were chosen by a random selection method. This study employed a semi-structured questionnaire. Every element of the study was customized to address a specific facet of the research. The survey's question selection was determined by using a 5-point Likert scale. A pilot test was done with a sample of workers from the Nairobi area of Kenya Power. A total of twelve individuals were selected, with three chosen from each of the four areas. The personnel that participated in the pilot testing did not partake in the real research. Data from demographics and objective one, two, three, and four were analyzed using descriptive analysis. Descriptive statistics included calculating the average (mean) and the measure of variability (standard deviation). The research utilized inferential statistics to ascertain the correlation between the independent factors and the dependent variable. The research outcomes were done using tables and figures. The study's findings suggest that implementing a risk avoidance approach has a beneficial and substantial effect on the execution of projects at Kenya Power and Lighting Company. Furthermore, the research establishes that using a risk reduction approach has a beneficial and substantial effect on the execution of projects at Kenya Power and Lighting Company. Additionally, the research determines that the transfer of risk has a favorable and substantial effect on the execution of projects at Kenya Power and Lighting Company. The research also determines that implementing a risk retention approach has a favorable and noteworthy effect on project performance at Kenya Power and Lighting Company. Based on the results, this research suggests that Kenya Power's management should consistently and comprehensively evaluate possible risks and uncertainties for all projects via complete and frequent risk assessments. This should include a comprehensive examination of both intrinsic and extrinsic elements that potentially influence project success.
Description
A Research Project Submitted to the School of Business, Economics and Tourism in Partial Fullfilment of the Requirements for the Award of Degree of Master of Business Administration (Project Management) of Kenyatta University, November 2024.
Supervisor
Paul Sang