Financial Goal Orientation and Its Effect on Finance Mobilization of Mega Projects in Kenya: Case of Parastatals in Energy Sector

Abstract

The energy sector has many projects which are initiated and/or are being implemented in tandem with the Kenya's Vision 2030. However, the successful implementation and completion of these mega projects is inhibited by untimely availability or inadequacy of financial resources. This article sought to examine the influence of financial goal orientation on finance mobilization by parastatals in the country's energy sector. It was guided by goal setting theory. Descriptive research design, deductive approach and quantitative method were employed by the study. The study population comprised 32 managers in charge of ongoing projects in the energy sector. A census design was used due to the small size of the study population. A structured questionnaire and data collection sheet were used in data collection. The collected data were analyzed with the aid of the Statistical Package for Social Sciences and using both descriptive and inferential statistics. The results of correlation analysis indicated that there existed strong and statistically significant relationship between financial goal orientation and finance mobilization. Moreover, it was revealed the effect of the aforesaid orientation on finance mobilization was significant. The article concluded that mega projects, usually take extended duration of time reflected by several years for them to recoup the capital initially invested in them. Both commercial and concessional loans were inferred to play a significant role in funding mega projects in the energy sector. The article has recommended that the monitoring and evaluation of the implementation of these projects should be very critical on the aspect of cost overruns. It was recommended that the aforesaid parastatals should go for long-term loans to fund mega projects.