PROJECT COST MANAGEMENT PRACTICES AND THE PERFORMANCE OF AFFORDABLE HOUSING PROGRAM IN KENYA
Main Article Content
Abstract
Purpose: The study examined the influence of project cost management on the performance of the Affordable Housing Programme (AHP) in Kenya. It specifically focused on how cost estimation, budgeting, expenditure monitoring, and cost control contribute to the effective implementation and performance of affordable housing projects.
Methodology: The study adopted a positivist research philosophy and combined descriptive survey and correlational research designs. The target population comprised project management personnel involved in the planning, implementation, coordination, monitoring and control of Affordable Housing Programme projects in Kenya. Using Cochran’s formula, a sample of 384 project personnel was determined, with respondents selected through multistage stratified purposive sampling. Data were collected using structured questionnaires and analysed using descriptive and inferential statistics, with qualitative responses analysed through content analysis.
Findings: The findings established a statistically significant positive relationship between project cost management and the performance of the Affordable Housing Programme (R = .525, adjusted R² = .273, p < .001). Project cost management significantly predicted programme performance (β = .525, t = 10.133, p < .001). The findings indicate that effective cost estimation, budgeting, resource planning, expenditure monitoring and cost control are associated with improved programme performance. Consequently, the null hypothesis was rejected.
Recommendations: The study recommends strengthening cost management throughout the implementation of the Affordable Housing Programme. Implementing agencies should improve cost estimation and budgeting, undertake continuous expenditure monitoring, and promptly address cost deviations. The use of work breakdown structures, detailed resource estimates and earned value management is also recommended to improve cost and progress control.
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