Financial risk management instruments and performance of hydro-power projects in Kenya

Abstract

This paper aims (i) to establish the extent to which alternative risk transfer influence the performance of hydroelectric energy projects in Kenya, (ii) to examine how Contingent capital influence the performance of hydroelectric energy projects in Kenya, (iii) to To assess the extent to which Credit enhancement influence performance of hydroelectric energy projects in Kenya, (iv) to determine the extent to which Hedging derivatives influence performance of hydroelectric energy projects in Kenya, (v) to examine how Insurance influence performance of hydroelectric energy projects in Kenya. The study adopted the pragmatism paradigm, mixed-method approach, and descriptive correlational survey design while questionnaires and interview guide were used to collect quantitative and qualitative data from a census of 94 participants. This study recommends that project management and policymakers should integrate appropriate financial risk management instruments to improve the performance of hydroelectric energy projects besides developing targeted policies for strengthening the implementation of the financial risk management instruments to boost investors and lenders confidence

Keywords: {'name': 'Financial Risk Management, Hydro-power projects, Energy, Kenya'}

Authors & affiliations

Amolo Elvis Juma Amolo
Affiliation not supplied

Charles Mallans Rambo
Affiliation not supplied

Charles Misiko Wafula
Affiliation not supplied

Deposited references

Supplied references, not a list of publications citing this article.

Allen, M.J. and Yen, M.W. (2002). Introduction to measurement theory. Long Grove, IL: Waveland press

DOI: 10.2139/ssrn.2140880

Basha, S. (2013). A study on the effective role of derivatives in controlling risk in Project Finance International. Journal of Business and Management Invention, 2(11).

DOI: 10.1111/jacf.12015

DOI: 10.3844/jssp.2007.106.116

DOI: 10.1016/j.proeng.2015.11.020

Creswell, J.W. (2013). Qualitative Inquiry and Research Design: Choosing among Five Approaches, 3rd ed. Thousand Oaks: Sage.

DOI: 10.1007/BF02310555

DOI: 10.1111/j.1540-6296.2008.00127.x

Dhruba, P. (2018). Managing Credit Risk and Improving Access to Finance in Green Energy Projects. ADBI Working Paper 855. Tokyo: Asian Development Bank Institute. Available: https://www.adb.org/publications/managing-credit-risk-improving-access-finance- green-energy-projects

DOI: 10.11113/jt.v74.4646

Frisari, G., Hervè-Mignucci, M., Micale, V., and Mazza, F. (2013). Risk Gaps: A map of risk mitigation instruments for clean investments. Climate Policy Initiative Report. Available at: www.climatepolicyinitiative.org

DOI: 10.1016/j.rser.2016.01.103

DOI: 10.1016/j.cya.2017.04.009

Gitone, I. (2014). Determinants of adoption of renewable energy in Kenya. Unpublished research paper in M.A Economics, School of Economics, University of Nairobi.

DOI: 10.1016/j.ecolecon.2015.03.016

International Evaluation Group (IEG) (2009). Independent evaluation of MIGA's development effectiveness: Enhancing MIGA's risk mitigation in IDA and conflict-affected countries. The World Bank-MIGA Washington, DC.

Kathuri, N.J. and Pals, D.A. (1993). Introduction to educational research. Njoro: Egerton University.

Kothari C. (2003). Research methodology, methods and Techniques. New Delhi: Wisha Prakshan.

DOI: 10.1088/1755-1315/16/1/012050

Ministry of Energy (2020c). Kenya Sustainable Energy for All Action Agenda. Kenya.

Mutua, J., Waiganjo, E. and Oteyo, I. (2014). The Influence of Contract Management on Performance of Outsourced Projects in Medium Manufacturing Enterprises in Nairobi County, Kenya. International Journal of Business and Social Science, 9(1); August 2014

DOI: 10.1787/instinv-2013-en

Ofori-Kuragu, J., Baiden, B., and Badu, E. (2016). Key Performance Indicators for Project Success in Ghanaian Contractors. International Journal of construction engineering and management 2016, 5(1), 1-10

DOI: 10.3390/en12020242

DOI: 10.1596/28073

DOI: 10.22495/jgr_v4_i3_c2_p6

DOI: 10.1061/9780784479377.111

Soye, Y., Adeyemo, D. and Ayo, J. (2017). Evaluation of impact of reinsurance mechanism on insurance company’s sustainability in Nigeria. International Journal of Research, Innovations and Sustainable Development, Volume7, Number1, 2017

DOI: 10.1016/j.ijproman.2015.08.003

Teddlie, C., and Tashakkori, A. (2009). Foundations of mixed methods research. CA: Sage Publications.

Vall´ee, B. (2016). Contingent Capital Trigger Effects: Evidence from Liability Management Exercises. Journal of Financial and Quantitative Analysis, 40(2), 403–434

Wambugu, L.N, Kyalo, N.D, Mbii, M, and Nyonje, R.O. (2015). Research methods theory and practice. Kenya: Aura Publishers

DOI: 10.47604/ijfa.724

Waweru, E. and Rambo, C. (2017). Factors influencing effective hydroelectric power supply generation in Kenya; a case of Kindaruma power station project in Machakos County. Unpublished research report