RISK MANAGEMENT AND PERFORMANCE OF AFFORDABLE HOUSING PROJECTS IN NAIROBI CITY COUNTY, KENYA
Abstract
Purpose of the Study: This study examined the effect of risk management practices on the performance of affordable housing projects in Nairobi City County, Kenya. Specifically, the study investigated the influence of risk identification, risk assessment, risk mitigation, and risk monitoring and control on project performance.
Statement of the Problem: Affordable housing projects play a critical role in addressing the growing housing deficit in urban areas. However, many affordable housing projects continue to experience cost overruns, delays, and quality shortfalls, which are often associated with inadequate risk management practices. This has created the need to examine how structured risk management practices influence the performance of affordable housing projects.
Research Methodology: The study was anchored on relevant project management and risk management theories and adopted a descriptive research design. The target population comprised 280 key stakeholders involved in affordable housing projects, including project managers, contractors, government officials, financial institution representatives, and other project participants. Stratified random sampling was used to ensure fair representation of all stakeholder groups, while Slovin’s formula was applied to calculate a sample size of 165 respondents. Primary data were collected using a structured questionnaire. Out of 165 questionnaires distributed, 149 were returned and deemed suitable for analysis, yielding a response rate of 90 percent. Data were analyzed using Statistical Package for Social Sciences version 26. Descriptive and inferential statistics were employed, including correlation and multiple regression analysis.
Findings: The regression model summary results showed R = .577 and R² = .333. This indicates that approximately 33.3 percent of the variation in the performance of affordable housing projects could be explained by the four risk management variables included in the model. The findings imply that risk identification, risk assessment, risk mitigation, and risk monitoring and control are important predictors of affordable housing project performance.
Conclusions: The study concluded that effective and structured risk management is essential for improving cost efficiency, timely completion, quality delivery, and overall project outcomes in affordable housing initiatives. The findings demonstrate that affordable housing projects perform better when risk management practices are integrated throughout the project lifecycle.
Recommendations: The study recommends that project managers and stakeholders in affordable housing projects should institutionalize comprehensive risk management frameworks that integrate risk identification, risk assessment, risk mitigation, and continuous risk monitoring and control. Strengthening these practices can enhance project sustainability and contribute to the successful delivery of affordable housing in Nairobi City County. Further research should explore additional contextual factors influencing project performance in other regions or infrastructure sectors.
Keywords: Risk Management Practices, Risk Identification, Risk Assessment, Risk Mitigation, Risk Monitoring and Control, Affordable Housing Projects, Project Performance, Nairobi City County, Kenya
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