Project Financial Management Techniques and Implementation of Agribusiness Projects in Murang'a County, Kenya

Damaris Waheti, Dr. Lucy Ngugi

Abstract


Agribusiness projects in Murang’a County have faced multiple implementation challenges, affecting their overall success and sustainability. Many projects experience delays in execution, cost overruns, and deviations from the originally planned scope. Murang’a County has experienced increased number of agribusiness projects. The projects have adopted various financial management practices in an attempt to enhance sustainability of the projects. However, more than 80% of the agribusiness projects in Murang’a County are poorly implemented. Further, previous studies have shown research gaps that needed to be filled. This research sought to bridge these gaps by determining the project financial management techniques and their effect on implementation of agribusiness projects in Murang'a County, Kenya. Specifically, the research aimed to find out the effect of financial risk management techniques,budgeting techniques, financial reporting techniques and cash-flow management techniques on implementation of agribusiness projects in Murang'a County, Kenya. The current investigation utilized a design that was descriptive in nature. The research targeted 21 agribusiness projects in Murang’a County with 265 project staffs within the projects. The sample size was computed using Yamane formula and selected using stratified sampling procedure. Semi-structured questionnaires were utilized. The researcher undertook piloting involving 7 project staffs from one project in Murang’a County. The investigator employed the drop-wait-and-pick methodology in administering the questionnaire. Data was analyzed utilizing inferential as well as descriptive statistics. From the results, the model had an r value of 0.619 indicating a strong correlation between variables. The r square value was 0.383. From ANOVA statistics the F value was 9.296 (p-value=0.000). From the regression equation, financial management techniques had positive and significant regression coefficients. The study concludes that project financial management has a positive effect on implementation of agribusiness projects in Murang’a County. The research concludes that financial risk management, budgeting, financial reporting and cash flow management techniques have a positive effect on implementation of agribusiness projects in Murang’a County. From the findings, this study recommends that agribusiness projects in Murang’a County come up with strategies that would improve project implementation which is poor. This research recommends that a same investigation be undertaken on other factors influencing implementation; other project financial management techniques; other measures of project implementation; and other counties and different projects other than Murang’a and agribusiness projects.

Keywords: Project Financial Management, Implementation, Financial Risk, Budgeting, Financial Reporting, Cash-Flow Management


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