Githu, Churu Pius2026-02-122026-02-122025-12https://ir-library.ku.ac.ke/handle/123456789/32406A Research Project Submitted to the School of Business, Economics and Tourism in Partial Fulfilment of the Requirements for the Award of the Degree of Master of Business Administration (Project Management) of Kenyatta University, December, 2025 Supervisor: 1.Stephen WaithakaWeak project performance persists across many state-owned manufacturing firms in Kenya, yet the degree to which governance frameworks shape these outcomes remains unsatisfactorily understood. This study therefore examined how regulatory and governance-related factors influence project performance within state-owned manufacturing enterprises in Kenya, addressing gaps in empirical evidence and inconsistencies observed in prior studies. The aim of the research was to evaluate the effect of key governance dimensions including compliance requirements, state control, institutional structures, fiscal management frameworks, and political dynamics on the delivery of manufacturing projects. Specifically, the study sought to: determine how compliance requirements affect project performance; assess the influence of state control; examine the role of institutional structures; evaluate the effect of fiscal management frameworks; and establish the moderating impact of political dynamics on project outcomes. The study was anchored on institutional isomorphism, resource dependency, political economy, governance networks and stakeholder engagement theories. The study targeted a total population of one hundred and sixty respondents drawn from multiple state-owned manufacturing institutions and regulatory bodies, from which a representative sample was selected through stratified random sampling. An exploratory cross-sectional design was adopted, and data were collected using semi-structured questionnaires administered physically and through online forms. The analysis involved descriptive statistics to establish patterns, multiple regression analysis to determine relationships among variables, and reliability and validity checks through pilot testing, Cronbach’s alpha, multicollinearity tests, ANOVA, model-fit measures, and correlation analysis. Findings revealed that while projects in state-owned manufacturing firms largely meet expected quality and stakeholder requirements criteria but consistently underperform in cost efficiency and timely delivery criteria. Compliance requirements emerged as the strongest positive predictor of projects performance, whereas political dynamics exerted a substantial negative effect. Although procurement and institutional compliance promote accountability, they also create bureaucratic delays. State control showed minimal influence, institutional structures demonstrated a moderate negative effect, and fiscal management frameworks had a moderately positive influence on project outcomes. The final regression model accounted for thirty percent of the variance in project performance, indicating the presence of additional determinants outside the governance framework. The study concluded that achieving effective project performance requires balancing necessary compliance with operational flexibility, enhancing institutional autonomy, simplifying regulatory procedures, and minimizing adverse political interference. Beneficiaries of the study include policymakers, managers of state-owned manufacturing firms, regulatory agencies, and researchers seeking to strengthen governance systems and improve project delivery. The study recommends further research into other sectors, additional determinants of project performance within state-owned firms, and deeper exploration of the interplay among institutional structures, fiscal management, and political dynamicsenThesis