Abstract
The purpose of the study was to examine how contingent capital influences the performance of hydroelectric energy projects in Kenya. The study was underpinned on pragmatism paradigm which allows the use of a mixed-method approach and descriptive correlational survey research design. Structured questionnaires and interview guides were used for the collection of quantitative and qualitative data from a sample size of 94 participants out of a target population of 94 subjects. A validity test was done on the instruments and a coefficient of 0.775 obtained using the 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. The analysis was done using both descriptive statistics of mean and standard deviation and inferential statistics 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. The hypothesis was tested using Simple linear regression and Pearson Correlation Coefficient models and the result was: H0: Contingent capital does not significantly influence the performance of hydroelectric energy projects in Kenya was rejected since P=0.000<0.05. Therefore, the study concluded that there is a significant influence of contingent capital on the performance of hydroelectric energy projects in Kenya. The study provides valuable knowledge on the effectiveness of contingent capital on the performance of hydroelectric energy projects for policy action and adoption by investors. It is recommended that Project management and policymakers should integrate Contingent capital to improve the performance of hydroelectric energy projects besides developing targeted policies for strengthening the implementation of contingent capital. Further research should be carried out on mechanisms of improving utilization of contingent capital in power projects in Kenya
Highlights
Financial constraints have impeded Renewable energy projects investments in Africa and Kenya in specific due to investor’s negative perception of the region’s high investment risk and low creditworthiness
The results indicate that out of 84 participants, 48(57.1%) disagreed that contingent capital eliminates problems of enforcing book capital requirements, 25(29.8%) were neutral that contingent capital eliminates problems of enforcing book capital requirements, 9(10.7%) of the respondent agreed that contingent capital eliminates problems of enforcing book capital requirements, 1(1.2%) strongly agreed that contingent capital eliminates problems of enforcing book capital requirements and 1(1.2%) strongly disagreed that contingent capital eliminates problems of enforcing book capital requirements
Based on the study results that regression coefficients p-values (0.000
Summary
Financial constraints have impeded Renewable energy projects investments in Africa and Kenya in specific due to investor’s negative perception of the region’s high investment risk and low creditworthiness. Due to investors negative perception of Kenya’s high investment risk and low creditworthiness, the degree of private capital penetration has generally remained low (OECD, 2013). For this massive infrastructural investment to be realized the financial markets must play critical role in stimulating private investments into the renewable energy development to bridge the scarce resources at disposal of the public sector (Rezec and Scholtens, 2017). Amolo et al, International Journal of Research in Business & Social Science 9(6)(2020) 134-142 based on market statistics by IEG (2009), reluctance of investors and financial institutions has impeded the financial risk mitigation instruments wide-spread provision and implementation due to the perceived high transaction cost
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
