Project Portfolio Management Practices And Performance of Water Service Boards In Kenya

Abstract

Kenya's Water Service Boards face performance issues due to weaknesses in poor project selection and prioritization, inadequate stakeholder engagement, inefficient resource allocation, weak risk management practices, monitoring and evaluation gaps, bureaucratic and regulatory challenges, and capacity constraints. These issues result in resource misallocation, delays, cost overruns, and sustainability issues. The specific objectives of the study were to determine the effect of project evaluation, project selection, resource allocation, portfolio control, and to establish the moderating effect of contextual factors on the relationship between project portfolio management practices and the performance of water service boards in Kenya. The study was based on Modern Portfolio theory, multi-criteria Utility theory, control theory, Systems theory, and Complexity theory. The study adopted a cross-sectional survey research design. The study targeted water boards in Kenya namely Coast Water Service Board, Rift Valley Water Service Board, Lake Victoria North, Tana Water, TanaAthi Water Service Board, and Athi Water Service Board since the water projects have been financed and implemented in these boards. The unit of analysis was the Water Service Boards in Kenya while the unit of observation of this study was the employees of the water boards in Kenya which was 280 individuals which constituted Engineers, senior management, middle management, and project team. A sample of 165 respondents was obtained using Yamane’s formula and response rate of the study was 80.6% where 133 questionnaires were returned. Statistical Package for Social Science (SPSS) version 24.0 was used to process and analyze the collected data. Descriptive and Inferential data analysis were used to analyze the objectives. The study found that respondents acknowledged the significance of project selection, resource allocation, portfolio control, and project evaluation in the implementation of water projects. To explore the relationship between project portfolio management (PPM) practices and organizational performance, multiple regression analysis was employed, while Chi-square tests were used to assess continuous variables. The results confirmed that these core PPM practices have a significant influence on the performance of Water Service Boards (WSBs) in Kenya. Additionally, the study established that portfolio risk management moderates the relationship between PPM practices and WSB performance. Based on these insights, the study concludes that WSBs should adopt structured project selection and prioritization methods to enhance performance outcomes. The study contributes to the growing body of knowledge on PPM by contextualizing its application in the public sector, particularly in water service provision. The findings also can enhance existing models that link portfolio management practices with public sector performance, highlighting how strategic project selection, risk management, and stakeholder engagement impact delivery. On practical implications, the study offers evidence-based recommendations for improving project selection, resource allocation, and risk management within WSBs, leading to better service delivery. Finally, the study offers a basis for comparative study across the various institutions in the public sector.