Critical Success Factors and Risk Management Procedures at Kenya Airports Authority

Abstract

In the recent past, there has been an increase in the number of airport accidents, fires and associated risks in Kenya. Unfortunately, there is no known research that has been undertaken in this area, thereby leaving a knowledge gap. It is on this basis that research in this area was desirable. This research project was a case study research design of critical success factors and risk management procedures at Kenya Airports Authority (KAA). The objectives of the study were to; identify the risk management procedures at KAA, determine the critical success factors in establishing the risk management procedures at KAA, and identify the challenges facing the implementation of risk management procedures at KAA. Data was collected using indepth interviews

by the researcher. It was analyzed and presented by way of content analysis. A total of seven out of ten top managers were interviewed. The research findings found out that KAA adopted risk management procedures in line with the provisions of The National Institute of Standards and Technology (NIST, 2004). It summarized their risks and subsequent risk management procedures into nine thematic risks including revenue generation, infrastructure and facilities, security, and safety risks. Other thematic areas include; business process automation, employee productivity and retention, environmental sustainability, customer service and corporate image, and corporate governance and political interference risks. The findings identified the critical success factors required to establish the risk management procedures at KAA as leadership and commitment, communication, organizational structure and culture, infrastructure and airport facilities, training, and technology. The challenges were found to be political interference, financial constraints, and inadequate land for expansion, leadership, technological and environmental inadequacies. The research concluded that KAA requires intensifying its efforts in establishing fool proof risk management procedures in all its thematic areas. Also strategic leadership and commitment which was found to have the greatest impact in risk management procedures requires a total overhaul especially in the appointment of the Board. In addition land for expansion was found to be inadequate for KAA. From the findings recommendations on theory and knowledge development, policy guidelines, and management practice were noted. Among these include the need to diversify revenue sources and the need to review contract periods for CEOs. This study was not without limitations. Some of the managers interviewed expressed fears in disclosing some sensitive finance, political, security and safety concerns. Hence, the data provided could have been inconclusive thereby making the applicability and generalizability not adequate across industry. The researcher therefore recommends the following areas for further research; First; security challenges posed by informal settlements to Airports in Kenya, and major political challenges facing risk management at airports and strategic responses to the same, as well as application of diversification strategy as a mitigation measure against revenue risks facing KAA