| dc.description.abstract | Various studies have attempted to reveal the causes of delay in start-up and completion of
donor projects in Kenya and other parts of the world. Most of these scholars have pointed out
that delays in funds disbursements, poor project preparation, government bureaucracy, among
other causes were found to be significant factors affecting completion of donor project. It is
however evident that most considerable delays during project start up, delays successive
project activities thus delaying project completion. Most of the projects experience lengthy
projects gestation periods of average 24months (period from signing of the loan to first loan
disbursement) that cause unnecessary time and project overruns. Hence, this project mainly
focused on loan effectiveness since it is this factor that determines timely project start up in
donor funded projects. The purpose of this study therefore sought to assess factors that
influence loan effectiveness in donor projects in Kenya, Case of Rural Health III Project.
Kenya’s Rural Health III project funded by African Development Bank (ADB) just like many
other projects is a matter of public interest and it was evident that it took long time for its first
loan allocation to be effective. Since the problem is more likely to reoccur to other starting
projects, it was crucial to identify these factors and assess how they influence loan
effectiveness in donor projects. This will help Government of Kenya and Project
Implementers to minimize significant delays and other unnecessary costs in donor funded
project thus improving aid effectiveness. The objectives of the study was to assess how
Precedent loan conditions, Capacity of Project implementers, Level of Planning and
Communication factors influence loan effectiveness in donor projects in Kenya. The research
design used was Descriptive and the data collected was quantitative in nature. The sample
size of 176 was used, which was drawn using simple random sampling from a stratified
population of Project Management Unit, Ministry of Health and National Treasury Staff. The
information was gathered by use of questionnaires that ware administered to the sample to
answer the research questions. The validity and reliability of the instrument was enhanced
through guidance of my supervisor and piloting testing the questionnaire to the respondents
before the actual data collection to ensure that the instrument answered the research questions
of this study. Data gathered was analyzed using SPSS. The study found out that inadequate
knowledge in donor disbursement rules, longer time by borrower to fulfil precedent loan
conditions, inadequate staff commitment to adherence of plans, inadequate coordination of
roles and responsibilities, long communication levels in the organization and inadequate
stakeholders participation during earlier stages of project to be some of the significant factors
that contributed to delay in loan effectiveness in donor projects in Kenya. It was concluded
that for timely project loan effectiveness, there is need to improve appreciation of roles of
project planning and management within projects and other relevant criteria in achievement
of project goals and long term expectations .In addition, adequate borrower’s need to involve
key project staff during project appraisal stages, adoption of flatter organization arrangement
and joint donor and creditor staff capacity training and development and staff motivation
were recommended by the study so as to minimize delay in project loan effectiveness. | en_US |
