Valentine Makena Munyua, Dr. Benard Lango


The general objective is to examine influence of project portfolio management on performance of bank financing in Kenya. The specific objectives are to; determine influence of portfolio planning, and portfolio inventory on performance of bank financing program in Kenya. The study was guided by the theory of transactive planning, and resource-based theory. The study adopted the descriptive research design. The study targeted the 399 commercial banks branches in Nairobi City County, Kenya. The target population comprised of 399 bank project managers from the banks’ headquarters in Nairobi City County.  The study used Yamane 1967 formula to get a sample of 200 project managers who were sampled using stratified random sampling. Questionnaires were used for data collection. The pilot test was conducted with 20 project managers representing 10% of the sample. The study used construct validity whereby factor analysis was used to check if the constructs used to measure the study variables are valid. Reliability was tested using Cronbach’s Alpha Coefficient method. The least acceptable scale for a reliable item was 0.7. The questionnaires were dropped off at the respondents’ office with the help of trained research assistants. The descriptive statistics included frequency, percentage, and mean while the inferential included correlation and regression. Findings were summarized using tables and a statistical discussion of the results given. The study concludes that portfolio planning has a significant effect on performance of bank financing program in Nairobi City County, Kenya. In addition, the study concludes that portfolio inventory has a significant effect on performance of bank financing program in Nairobi City County, Kenya. Based on the findings, this study recommends that the management of commercial banks should ensure effective portfolio planning through proper budgeting, well defined project schedule and project scope. In addition, the management of commercial banks should formulate and implement effective framework to ensure portfolio risk identification and management.

Key Words: project portfolio management, portfolio planning, portfolio inventory, performance, bank financing program

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