Factors Influencing Timely Completion of Energy Projects in Kenya: a Case of Energy Sector Recovery Project by Kenya Power and Lighting Company

Abstract

Energy sector is one of the key drivers of Kenyan economy due to its ability to create job opportunities and massive consumption of resources. Projects delays are a common and regular phenomenon and energy sector in Kenya is no exception. Many projects supervised or implemented by the Kenya power and Lighting Company prior to 2013 stalled or were poorly implemented and Lacked quality. The Construction of 132 kv New Bamburi - Kilifi line for example never kicked off even after design in 2002. A search on studies regarding timely completion of utility energy projects in the public sector revealed that no distinct factors have been identified for the energy sector. This study sought to examine the factors that influence timely completion of utility energy projects in the public sector with a specific focus of Kenya Power and Lighting Company Ltd. This was necessitated by challenges that faced timely completion of utility energy projects in the energy sector. The study had objectives as follows: To establish the extent to which financial resources influence timely completion of utility energy projects in KPLC, to determine how organization strategy influences timely completion of utility energy projects in KPLC, To determine how new technology/innovation influences timely completion of utility energy projects in KPLC, and to establish the influence of stakeholder involvement on the timely completion of utility energy projects in KPLC. Descriptive cross-sectional survey design was used in the study due to its ability to take in to account various aspects of a problem for the purpose of a detailed, intensive and scrupulous study. Rao (2003). This design was used since the collected data allowed the research to provide an insight in to life experiences in a way that other research methods couldn’t. It removes barriers of strict academic approaches so that the researcher can witness many other people’s experiences in the management of utility energy sector projects. The study population consisted of 350 members of project management teams and other divisions that deal with projects in the company all over the country, where the staff act as the respondents. Other respondents were the top management in the company. A sample size of 105 project team members was selected from the population using stratified random sampling. The study used primary data that was collected from the managers, project engineers and project implementation teams using questionnaires and interviews which contained both closed and open ended questions. Prior to the main research, a pilot study was carried out to pre-test the instruments to enhance validity and reliability. Descriptive statistics was used to investigate the project, the factors influencing timely completion of utility energy projects in the public sector. The study found out that that there exist a strong and positive relationship between financial resources, organizational strategy, technology/innovation, stakeholders’ involvement and timely completion of utility energy projects. Financing through effective financial modeling for proposed projects and the procurement process in order to enhance the project management systems was considered. This study may be replicated for studies concerning timely completion of energy utility projects in the private sector too.