Factors Affecting Effectiveness Of Risk Management In Public Housing Construction Projects In Kenya: A Case Of Kibera Slum Upgrading Housing Scheme In Nairobi

Abstract

Kenya has seen a significant rise in infrastructure developments in the recent past, especially in the fields of real estate development and many house construction projects have failed to achieve project success due to increase in risk and uncertainty. The objective of this study was to establish the factors affecting effectiveness of risk management in housing construction projects in Kenya, a case of Kibera Slum Upgrading Housing Scheme. The research objectives were; to determine the extent to which level of top management support affect effectiveness of risk management in housing construction projects, to establish the extent to which competence of project team affect effectiveness of risk management in housing construction projects, to examine the extent to which project funding affect effectiveness of risk management in housing construction projects and to establish the extent to which project risk management affect effectiveness of risk management in housing construction projects. To achieve study objective, descriptive survey design was adopted. This research design involved gathering data that described events and then organized, tabulated, depicted, and described the data. The population of the study for this study was five institutions that manage the Kibera Upgrading Housing Scheme which include Ministry of land, provisional administration, community organizations, religious group and KENSUP. Fisher formula was used to select the study sample size of 116 from a target population of 164. The primary data for this study was collected using both closed and open ended structured questionnaires. The collected data was well examined and checked for completeness and comprehensibility. The data was then summarized, coded and tabulated. Descriptive statistics such as means, standard deviation and frequency distribution were used to analyze the data. Data presentation was done by frequency tables for ease of understanding and interpretations. Inferential statistics such as regression and correlation analysis were used to determine the relationship between effectiveness of risk management and factors that affect risk management effectiveness in housing sector. The study established that low level of top management support where project management failed to develop project procedures from initiation stage, install training programs, establish project management office and support quality management affected the effectiveness of risk management in Kibera Housing Scheme by a factor of 0.683 and p value of 0.03. Incompetent project team members who did not understand project risk management process affected effective risk management by a factor of 0.517 and p value of 0.04,lack of funding which did not link to Gantt chart of the project affected the effectiveness of risk management by a factor of 0.468 and p value of 0.02 and lack of project risk planning where there was no proper risk identification, assessment, prioritization, mitigation and control affected effectiveness of risk management by a factor of 0.691 and p value of 0.01 in Kibera Housing Scheme.The study recommends that top management should be committed to inclusive and transparent risk management, project team should be trained in risk management and administrative skills, project funding should be linked to the Gantt chart and proper project risk planning should be done to enable structured and systematic risk management in construction projects.