Macro-Economic Risk Factors on Perfomance of Public Private Partnership Renewable Energy Projects: Evidence from Geothermal Renewable Energy Projects in Kenya

Kenneth Otieno Odhiambo^1, , 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

Cite this paper:
Kenneth Otieno Odhiambo, Charles M. Rambo and Stephen Lucas Okello. Macro-Economic Risk Factors on Perfomance of Public Private Partnership Renewable Energy Projects: Evidence from Geothermal Renewable Energy Projects in Kenya. Journal of Finance and Economics. 2020; 8(2):47-56. doi: 10.12691/jfe-8-2-1

Abstract

Increasing demand for infrastructure has caused a rise in the global adoption of public private partnerships concept. However, over the years most developing countries have failed to attract more private investments as realized in developed counties this has largely been blamed on macroeconomic conditions. The purpose of this study was therefore to establish how macroeconomic risk influence the performance of public private partnership 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 while an interview guide was used to collect qualitative data after piloting and reliability established. 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 macroeconomic risks was significantly related to performance of public private partnerships renewable energy projects with F (1,205) = 117.416, p< 0.001, R2=0.364, H0 was consequently rejected. Based on this finding the study recommends macroeconomic stability to promote public private partnerships.

Keywords:
macro-economic risks financing Public Private Partnerships geothermal renewable energy projects

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