Effects of Project Risk Management on the Performance of Geothermal Projects at Kengen Company PLC

Abstract

Objective of this inquiry was on the influence of project risk management practices on the performance of projects undertaken by KenGen. Utilizing a questionnaire-based survey, data was gathered from managers within KenGen to gain insights into the organization's risk management processes. The theoretical framework guiding the study included contingency theory and agency theory of management. The research findings revealed that KenGen demonstrated strengths in certain aspects of project risk management, particularly in risk identification and assessment, contributing to positive perceptions of project scope and management plans. However, areas for improvement were identified, such as the integration of systematic risk occurrence mechanisms and the explicit communication of risk acceptance and avoidance strategies within the risk response framework. Drawing on regression analysis and ANOVA, the study noted that risk management improved the firm success. . These results underscored the critical role of robust risk management practices in influencing various dimensions of organizational success within the energy sector. The study's recommended the need for managers within the energy industry and policymakers to focus on enhancing specific aspects of risk management, formalizing evacuation strategies, and tailoring practices to the industry's unique characteristics. Policymakers should foster a supportive regulatory environment that promotes best practices and collaboration within the sector.