PROJECT CONTRACTUAL PROCESSES AND PERFORMANCE OF CAPITAL PROJECTS IN ENERGY BASED STATE CORPORATIONS IN KENYA
PROJECT CONTRACTUAL PROCESSES AND PERFORMANCE OF CAPITAL PROJECTS IN ENERGY BASED STATE CORPORATIONS IN KENYA
Brian Kithinji Njoka - Masters Student, Project Planning and Management, University of Nairobi, Kenya
Dr. Naomi Gikonyo - Lecturer, Faculty of Business and Management Sciences, University of Nairobi, Kenya
ABSTRACT
This study aims at establishing project contractual processes and performance of capital projects in energy-based state corporations in Kenya. Specifically, this study focused on the influence of approval processes, procurement processes, application of project standards and variations in scope in the performance of capital projects in energy-based state corporations in Kenya. The research design used in this study was a descriptive survey. Managers and workers at Kenyan state businesses dealing with energy were the focus of this research. Where a sample size of 191 was selected at random from a pool of 368 using a proportional stratified sampling technique. The main data was gathered via the use of self-administered questionnaires. The data was also analyzed with the use of SPSS 21.0, the Statistical Package for the Social Sciences. Descriptive and inferential statistics were also used to examine the data. Quantitative variables were evaluated using descriptive statistics including frequency, percentage, mean score, and standard deviation. The relationship between the dependent and independent variables was assessed via the use of a multiple regression analysis. The data that was analyzed was given in tabular form. The research findings indicate a robust and statistically significant correlation between approval processes, procurement processes, project standards, and variations in scope and performance of capital projects in energy-based state corporations in Kenya. This is evidenced by the beta coefficients values of 0.681, 0.592, 0.747, and 0.715 respectively, all of which have p-values less than 0.05. These results suggest that improvements in these four factors have a positive impact on the performance of capital projects in energy-based state corporations in Kenya. Based on the findings of this study, it is advisable for energy-based state corporations in Kenya to enhance the performance and completion rate of their capital projects. This can be achieved by allocating their financial, technical, and human resources towards improving efficiencies in the approval processes, procurement processes, project standards, and management of variations in scope.
