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Credit Enhancement and Performance of Hydroelectric Energy Projects in Kenya

Author

Listed:
  • Amolo Elvis Juma Amolo

    (PhD Candidate, University of Nairobi, Kenya)

  • Charles Mallans Rambo

    (Associate Professor PhD, University of Nairobi, School of Open and Distance Learning, Kenya)

  • Charles Misiko Wafula

    (Senior Lecturer PhD, University of Nairobi, School of Open and Distance Learning, Kenya)

Abstract

Renewable energy investment has been underexploited in Africa and Kenya in specific due to financing constraints arising from investor’s negative perception of the regions high investment risk and low creditworthiness which retards the degree of private capital penetration. The purpose of the study was to assess the extent to which Credit enhancementinfluence performance of hydroelectric energy projects in Kenya. The study was underpinned on pragmatism paradigm which allows the use of mixed method approach and descriptive correlational survey research design. Structured questionnaires and interview guide were used to collect quantitative and qualitative data from a sample size of 94 participants out of a target population of 94 subjects. Validity test was done on the instruments and a coefficient of 0.775 obtained using Content Validity Index while reliability involved pretesting of the instruments amongst the 10% of the participants and Cronbach's alpha coefficient of 0.781 obtained. Analysis was done using both descriptive statistic of mean and standard deviation and inferential statistic of Correlation and Regression at a significance level of 0.05 with the aid of SPSS version 25 and thematic content analysis of qualitative data for triangulation. Simple linear regression and Pearson Correlation Coefficient models were used to determine the influencebetween independent and dependent variable and the result H0: Credit enhancement does not significantly influence performance of hydroelectric energy projects in Kenya was rejected since P=0.000

Suggested Citation

  • Amolo Elvis Juma Amolo & Charles Mallans Rambo & Charles Misiko Wafula, 2020. "Credit Enhancement and Performance of Hydroelectric Energy Projects in Kenya," International Journal of Finance & Banking Studies, Center for the Strategic Studies in Business and Finance, vol. 9(4), pages 47-57, October.
    • Handle: RePEc:rbs:ijfbss:v:9:y:2020:i:4:p:47-57
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    References listed on IDEAS

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    1. Christopher Kaminker & Osamu Kawanishi & Fiona Stewart & Ben Caldecott & Nicholas Howarth, 2013. "Institutional Investors and Green Infrastructure Investments: Selected Case Studies," OECD Working Papers on Finance, Insurance and Private Pensions 35, OECD Publishing.
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    3. Inderst, Georg & Stewart, Fiona, 2014. "Institutional Investment in Infrastructure in Emerging Markets and Developing Economies," MPRA Paper 62522, University Library of Munich, Germany.
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    Keywords

    Credit; Energy; Project; Performance;
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