RISK MANAGEMENT STRATEGIES AND THE IMPLEMENTATION OF RURAL ELECTRIFICATION PROJECTS IN NAKURU COUNTY, KENYA
Abstract
Rural electrification is a vital part of a nation's infrastructure in Kenya’s economic plans. It is projected that approximately eighty five percent of the 1.2 billion persons without access to electricity live in the rural areas. It was recognized that there are inconsistencies on the performance of the REP in comparison to the funding being channeled to the same; three key indicates on these were used i.e. electric access rate, reliability and cost of sales all showed dismal performance hence the need to understand the effect of risk management strategies and the implementation of rural electrification project in Naivasha Constituency could not be overstated. Various researchers concurs that the correlation between uncertainty and project failure are elaborately documented, however the same cannot be said on the correlation among the various factors and the successful implementation of projects. Investigations on risk management also reported that despite the high prominence and positive insight on risk management in their establishments, an important gap exists between interest for risk management and resource allocation and staff training. The project explored on transfer risk management strategies and their effect on project implementation of rural electrification projects in Naivasha constituency, Kenya. The study employed descriptive statistic design. Purposive sampling 45 respondents were administered structured questionnaires. The finding of the study indicated that risk transfer which included outsourcing, joint ventures and use of insurance were shown to impact strongly on the impact implementation of REP projects and had not been implemented entirely into rural electrification projects in Naivasha County thus the management should be encourage on their continued applications. The study recommended on improving on risk transfer strategies in order to implement REP. By having one, Joint ventures that supports equity participation for production, technology transfer, managerial contract, and marketing and outsourcing. Two, training project team on quality assurance to improve the project plan to meet the quality standards, and aiming at preventing mistakes in REP projects. Three, introducing new approaches for the determination of risk contingencies and budgeting method.
Key words: Risk Management, Risk Transfer, Rural Electrification
CITATION: Mburu, S. K., & Sang, P. (2019). Risk management strategies and the implementation of rural electrification projects in Nakuru County, Kenya. The Strategic Journal of Business & Change Management, 6 (2), 1979 –1988.
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DOI: http://dx.doi.org/10.61426/sjbcm.v6i2.1232
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