Influence of enterprise resource planning systems on performance of donor funded projects in Kenya. A case of geothermal development company in Nakuru County

Abstract

Enterprise Resource Planning system plays a major role in the management of project resources. However the management of donor funds by the national or county governments is still a big challenge in Kenya. Financing of vision 2030 flagship projects has attracted different financing models. One of key project by the ministry of energy is the drilling of geothermal energy in Nakuru County. Drilling of Geothermal well is a very expensive undertaking .Although the initial cost of drilling geothermal wells is very high, the benefits accrued outweigh the cost. In real sense, geothermal energy is cheaper compared to other sources of energy. Despite its importance to the economy and natural environment there is little knowledge on the performance of this this capital intensive projects in Kenya and Africa in General. Menengai geothermal project has received billions of shillings through local and international funding,for the exploration and drilling of geothermal wells. This study aimed at establishing the influence of Enterprise Resource Planning systems on the performance of donor funded projects in Kenya, a case of Geothermal Development Company in Nakuru County. Specifically, the study examined the influence of Financial Accounting, Material Management and Project Planning module on performance of donor funded projects in Kenya. The study was guided by the theory of constraints and Theory of project management. A descriptive survey research designwas adopted. The target population of this study wasall the GDC employees offive departments namely: Finance and ICT,Supply Chain, Project Planning, Corporate Management ,Drilling and Infrastructure Development departments who operate Enterprise Resource Planning licenses. The study used a sample size of 89 respondents from the target population using purposive random sampling method. A pilot study was carried out before the main study in order to access the validity and reliability of the research instrument. This was done after obtaining relevant authority to conduct the study. Cronbach alpha coefficient of a range of 0.7 and above was used to measure the reliability of the study. The data was then analyzed using the descriptive and inferential statistics. The descriptive statistics undertaken included means, standard deviations and frequency distributions. The study revealed that Financial Accounting module and Material management module have significant influence on performance of donor funded projects at Menengai Geothermal project. In addition project planning module had a less influence on performance of donor funded project at geothermal development company at Menengai compared to the other two variables. . The researcher recommends a further scientific study on Influence of ERP systems in managing Geothermal drilling Operations. The results of this study will be important to Geothermal Development Company (GDC), the government of Kenya as they strive towards providing cost effective and affordable green energy with the aim of fulfilling vision 2030.Equally the donors who have come on board to support the exploration and development of geothermal energy in Menengai Geothermal Prospects. Furthermore this study will provide literature for scholars for future studies on green cheaper and affordable energy for Kenya.