FINANCIAL RESOURCE ALLOCATION AND PERFORMANCE OF GEOTHERMAL POWER PROJECTS IN NAKURU COUNTY, KENYA

ABSTRACT Financial resource allocation remains a critical determinant of project success in capital intensive geothermal energy development. This study examined the relationship between financial resource allocation and the performance of geothermal power projects in Nakuru County, Kenya. Adopting a descriptive survey research design, the study targeted 87 employees of the Geothermal Development Company (GDC) working in the Olkaria and Menengai geothermal projects. Data were collected through structured questionnaires and analyzed using descriptive statistics, Pearson correlation, and multiple linear regression. The findings revealed that financial resource allocation practices were generally perceived as weak, with mean scores ranging from 2.41 to 2.76 on a 5 point scale, indicating inadequate budget allocation, funding timeliness challenges, and insufficient investment support for project milestones. Correlation analysis established a significant positive relationship between financial resource allocation and project performance (r = 0.648, p < 0.01). Regression analysis confirmed that financial resource allocation significantly influenced project performance, explaining a substantial proportion of variance in project outcomes. The study concludes that adequate and timely financial resource allocation is essential for geothermal project success, and weaknesses in financial management contribute to project delays, cost overruns, and reduced operational efficiency. The study recommends that GDC implement milestone linked financial disbursement systems, establish clear budget allocation frameworks based on actual project needs, and conduct regular financial audits to enhance accountability and cost efficiency in geothermal project delivery. Keywords: Resource allocation, geothermal power projects, project performance, budget adequacy, funding timeliness, Nakuru County