International Journal of Econometrics and Financial Management
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International Journal of Econometrics and Financial Management. 2020, 8(1), 21-29
DOI: 10.12691/ijefm-8-1-4
Open AccessArticle

Political Risk Factors on Perfomance of Public Private Partnership Renewable Energy Projects: The Case of Geothermal Renewable Enrgy Projects in Kenya

Kenneth Otieno Odhiambo1, , Charles M. Rambo2 and Stephen Lucas Okello3

1Phd candidate, School of Open and Distance Learning, University Of Nairobi, Nairobi, Kenya

2Associate Professor, School of Open and Distance Learning, University Of Nairobi, Nairobi, Kenya

3Lecturer School of Open and Distance Learning, University Of Nairobi, Nairobi, Kenya

Pub. Date: March 03, 2020

Cite this paper:
Kenneth Otieno Odhiambo, Charles M. Rambo and Stephen Lucas Okello. Political Risk Factors on Perfomance of Public Private Partnership Renewable Energy Projects: The Case of Geothermal Renewable Enrgy Projects in Kenya. International Journal of Econometrics and Financial Management. 2020; 8(1):21-29. doi: 10.12691/ijefm-8-1-4

Abstract

To solve the problem of limited fiscal funds and demand for energy, PPP has been touted as an effective approach. However political risks have been blamed for failure to attract private investments in equally measure as their developed partners. This article looked at political risks influencing the performance of PPP renewable energy projects in Kenya. The study adopted a pragmatic paradigm and employed a mixed methods approach, correlational and descriptive survey design. Quantitative data was collected by use of a self-administered questionnaire and an interview guide was used to collect qualitative data. A sample size of 263 respondents was drawn from a target population of 769 using the Yamane formula. For descriptive statistics the study used the mean and standard deviation. For inferential statistics the study used Pearson’s Product Moment Correlation (r) and Multiple Regression while the F-tests were used in hypothesis testing. The study established a significant influence of political risks r = 0.572, F (1,205) = 99.771, R2 = 0.327 at p<.05 H0 was rejected. The study concluded that there was a significant influence of political risks on the performance of PPP renewable energy projects in Kenya. Based on this finding the study recommends sustainable political stability.

Keywords:
political risks factors financing public private partnerships and geothermal renewable energy projects

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