RISK MANAGEMENT AND PERFORMANCE OF AFFORDABLE HOUSING PROJECTS IN NAIROBI CITY COUNTY, KENYA

Anthony Mwaura Waweru, Dr. Emmy Rotich

Abstract


Affordable housing projects play a critical role in addressing housing shortages in rapidly urbanizing regions. However, many affordable housing projects in Kenya continue to experience delays, cost overruns, and quality challenges that undermine project performance. This study sought to establish the relationship between risk management and the performance of affordable housing projects in Nairobi City County, Kenya. Specifically, the study examined the influence of risk identification, risk assessment, risk mitigation, and risk monitoring and control on project performance. The study was anchored on Risk Management Theory, Prospect Theory, Contingency Theory, and Control Theory. A descriptive research design was adopted. The target population comprised 280 stakeholders involved in affordable housing projects, including project managers, contractors, government officials, consultants, and financial institution representatives. Using stratified random sampling and Slovin’s formula, a sample size of 165 respondents was selected. Primary data were collected using structured questionnaires. Out of 165 questionnaires distributed, 149 were successfully completed and returned, representing a response rate of 90 percent. Data were analyzed using SPSS Version 26 through both descriptive and inferential statistics. Correlation and multiple regression analyses were used to determine relationships among variables. The findings revealed that risk identification (β = 0.176, p = 0.017), risk assessment (β = 0.249, p = 0.001), and risk mitigation (β = 0.289, p < 0.001) had positive and statistically significant effects on project performance. Risk monitoring and control had a positive but statistically insignificant effect on project performance (β = 0.130, p = 0.083). The study concludes that effective risk management practices significantly improve project timeliness, cost efficiency, and quality performance. The study recommends institutionalization of comprehensive risk management frameworks across all affordable housing projects to improve project outcomes and sustainability.

 

Keywords: Risk Management, Risk Identification, Risk Assessment, Risk Mitigation, Risk Monitoring and Control, Affordable Housing Projects, Project Performance.


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