Influence of Economic Factors on Performance of Project Management among Petroleum Marketing Firms in Kenya

The behavior by the oil marketing companies in Kenya has over the years generated a lot of public concerns on the overall economic efficiency and rationale of unfettered market mechanisms in the retail petroleum market in Kenya and literally re-kindled agitations for re- introduction of price controls. The purpose of this research was to identify success factors, required to address concerns on recurrent project cost escalation, schedule delays and customer satisfaction in the petroleum industry projects. The main purpose of this study was to investigate the influence of economic factors on performance of project management among petroleum marketing firms in Kenya. This research was studied through the use of a descriptive research design. The target population composed of the 159 top, middle and low level management staffs working with the head offices of the major petroleum marketing firms in Nairobi. Stratified random sampling technique was used to select a sample of 30% (48 respondents) from within each group in proportions comprising of departmental heads, assistant departmental heads and lower cadre staffs like the supervisors, accounts and other officers since they are the ones conversant with the influence of economic factors on performance of project management among petroleum marketing firms in Kenya. The study made use of a survey questionnaire administered through drop and pick later method. The questionnaire was pre-tested for validity and reliability with 10 management staff of petroleum marketing firms which ensured that the questionnaire is appropriate and the aspects investigated was generally understandable. Quantitative data collected was analyzed by the use of descriptive statistics using SPSS and presented through percentages, means, standard deviations and frequencies. The information was displayed by use of bar charts, graphs and pie charts and in prose-form. The study findings show that project management among petroleum marketing firms is generally less successful which could be attributed to various economic factors that inhibit their success. Foreign currency exchange rate, funding, joint ventures and foreign investments affect the success of projects in the petroleum marketing firms. The study recommends that since economic factors contribute immensely to performance of petroleum marketing projects, petroleum infrastructural requirements as well as investment requirements and options for financing petroleum promoting projects including public private partnerships, project financing and/or an appropriate throughput tariff structure that will spur investment in petroleum industry development.