Budgeting and Performance of Mega Dam Projects in Kenya

Purpose:  The purpose of this study was to examine the relationship between budgeting and the performance of mega dam projects in Kenya. This study was anchored on agency theory. Methodology: This study used descriptive and explanatory research design. This study adopted a positivist research paradigm. The unit of analysis was the ongoing and completed dam projects in Kenya while the unit of observation was 361 respondents comprising of 160 employees involved in the projects, 68 national government representatives, 101 project beneficiaries and 32 county government representatives. Due to small size of the target population the study used census method. In this study, primary and secondary data was used. It was collected using a questionnaire. Pilot study was conducted to test the validity and reliability of the data collection instrument. The Statistical Package for Social Sciences (SPSS) version 25 software was used to analyze the data. Qualitative data was analyzed using content analysis and presented in prose form. Quantitative data was analyzed using descriptive and inferential analysis. Descriptive statistics such as frequency, percentages, and means was used. Pearson correlation coefficient was used for testing strength and direction between the independent and the dependent variables. A multiple regression model was used to test the significance of the influence of the independent variables on the dependent variable. The findings were presented in Tables and figures. Findings: The study concluded that budgeting positively and significantly influences performance of mega dam projects in Kenya. Unique Contribution to Theory, Policy and Practice: Based on the findings, the study recommends that project managers should adopt realistic and flexible budgeting practices that incorporate thorough cost estimation, risk allowances, and contingency planning. This approach ensures that sufficient funds are allocated not only for construction but also for environmental mitigation, community resettlement, and unforeseen challenges.