IDEAS home Printed from https://ideas.repec.org/a/rbs/ijfbss/v9y2020i4p47-57.html
   My bibliography  Save this article

Credit Enhancement and Performance of Hydroelectric Energy Projects in Kenya

Author

Listed:
  • Amolo Elvis Juma Amolo

    (PhD Candidate, University of Nairobi, Kenya)

  • Charles Mallans Rambo

    (Associate Professor PhD, University of Nairobi, School of Open and Distance Learning, Kenya)

  • Charles Misiko Wafula

    (Senior Lecturer PhD, University of Nairobi, School of Open and Distance Learning, Kenya)

Abstract

Renewable energy investment has been underexploited in Africa and Kenya in specific due to financing constraints arising from investor’s negative perception of the regions high investment risk and low creditworthiness which retards the degree of private capital penetration. The purpose of the study was to assess the extent to which Credit enhancementinfluence performance of hydroelectric energy projects in Kenya. The study was underpinned on pragmatism paradigm which allows the use of mixed method approach and descriptive correlational survey research design. Structured questionnaires and interview guide were used to collect quantitative and qualitative data from a sample size of 94 participants out of a target population of 94 subjects. Validity test was done on the instruments and a coefficient of 0.775 obtained using 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. Analysis was done using both descriptive statistic of mean and standard deviation and inferential statistic 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. Simple linear regression and Pearson Correlation Coefficient models were used to determine the influencebetween independent and dependent variable and the result H0: Credit enhancement does not significantly influence performance of hydroelectric energy projects in Kenya was rejected since P=0.000

Suggested Citation

  • Amolo Elvis Juma Amolo & Charles Mallans Rambo & Charles Misiko Wafula, 2020. "Credit Enhancement and Performance of Hydroelectric Energy Projects in Kenya," International Journal of Finance & Banking Studies, Center for the Strategic Studies in Business and Finance, vol. 9(4), pages 47-57, October.
    • Handle: RePEc:rbs:ijfbss:v:9:y:2020:i:4:p:47-57
    as

    Download full text from publisher

    File URL: https://www.ssbfnet.com/ojs/index.php/ijfbs/article/view/848/680
    Download Restriction: no
    File URL: https://www.ssbfnet.com/ojs/index.php/ijfbs/article/view/848
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Christopher Kaminker & Osamu Kawanishi & Fiona Stewart & Ben Caldecott & Nicholas Howarth, 2013. "Institutional Investors and Green Infrastructure Investments: Selected Case Studies," OECD Working Papers on Finance, Insurance and Private Pensions 35, OECD Publishing.
    2. Naoyuki Yoshino & Farhad Taghizadeh-Hesary, 2015. "Analysis of Credit Ratings for Small and Medium-Sized Enterprises: Evidence from Asia," Asian Development Review, MIT Press, vol. 32(2), pages 18-37, September.
    3. Inderst, Georg & Stewart, Fiona, 2014. "Institutional Investment in Infrastructure in Emerging Markets and Developing Economies," MPRA Paper 62522, University Library of Munich, Germany.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Francesco Ciampi & Alessandro Giannozzi & Giacomo Marzi & Edward I. Altman, 2021. "Rethinking SME default prediction: a systematic literature review and future perspectives," Scientometrics, Springer;Akadémiai Kiadó, vol. 126(3), pages 2141-2188, March.
    2. Fay, Marianne & Martimort, David & Straub, Stéphane, 2021. "Funding and financing infrastructure: The joint-use of public and private finance," Journal of Development Economics, Elsevier, vol. 150(C).
    3. Cui, Li & Chan, Hing Kai & Zhou, Yizhuo & Dai, Jing & Lim, Jia Jia, 2019. "Exploring critical factors of green business failure based on Grey-Decision Making Trial and Evaluation Laboratory (DEMATEL)," Journal of Business Research, Elsevier, vol. 98(C), pages 450-461.
    4. Chen, Jingyuan & Calabrese, Raffaella & Cowling, Marc, 2024. "Does energy efficiency of UK SMEs affect their access to finance?," Energy Economics, Elsevier, vol. 129(C).
    5. Huang, Shuo, 2022. "Does FinTech improve the investment efficiency of enterprises? Evidence from China’s small and medium-sized enterprises," Economic Analysis and Policy, Elsevier, vol. 74(C), pages 571-586.
    6. Rabah Arezki & Amadou Sy, 2016. "Financing Africa’s Infrastructure Deficit:," OxCarre Working Papers 173, Oxford Centre for the Analysis of Resource Rich Economies, University of Oxford.
    7. Tran Huong Thi Thanh & Le Ha Thi Thu, 2021. "The Impact of Financial Inclusion on Poverty Reduction," Asian Journal of Law and Economics, De Gruyter, vol. 12(1), pages 95-119, April.
    8. Gurara, Daniel & Presbitero, Andrea & Sarmiento, Miguel, 2020. "Borrowing costs and the role of multilateral development banks: Evidence from cross-border syndicated bank lending," Journal of International Money and Finance, Elsevier, vol. 100(C).
    9. Farhad Taghizadeh-Hesary & Naoyuki Yoshino, 2020. "Sustainable Solutions for Green Financing and Investment in Renewable Energy Projects," Energies, MDPI, vol. 13(4), pages 1-18, February.
    10. Inderst, Georg, 2020. "Social Infrastructure Finance and Institutional Investors. A Global Perspective," MPRA Paper 99239, University Library of Munich, Germany.
    11. Surbhi Gupta & Anil Kumar Sharma, 2022. "Evolution of infrastructure as an asset class: a systematic literature review and thematic analysis," Journal of Asset Management, Palgrave Macmillan, vol. 23(3), pages 173-200, May.
    12. Yoshino Naoyuki & Hendriyetty Nella, 2020. "The COVID-19 Crisis: Policy Recommendations for Japan," The Economists' Voice, De Gruyter, vol. 17(1), pages 1-09, December.
    13. Yoshino, Naoyuki & Taghizadeh-Hesary, Farhad, 2019. "Optimal credit guarantee ratio for small and medium-sized enterprises’ financing: Evidence from Asia," Economic Analysis and Policy, Elsevier, vol. 62(C), pages 342-356.
    14. Gopal K. Sarangi, 2018. "Green Energy Finance in India: Challenges and Solutions," Working Papers id:12897, eSocialSciences.
    15. Polzin, Friedemann & Sanders, Mark, 2020. "How to finance the transition to low-carbon energy in Europe?," Energy Policy, Elsevier, vol. 147(C).
    16. S. M. Rakibul Anwar, 2016. "Credit rating for small and medium enterprises: problems and prospects in Bangladesh," Journal of Asian Business Strategy, Asian Economic and Social Society, vol. 6(11), pages 234-245, November.
    17. Wan Mohd Nazdrol bin Wan Mohd Nasir & Abdullah Al Mamun & John Breen, 2017. "Strategic Orientation and Performance of SMEs in Malaysia," SAGE Open, , vol. 7(2), pages 21582440177, June.
    18. Inderst, Georg, 2021. "Financing Development: Private Capital Mobilization and Institutional Investors," EconStor Preprints 232266, ZBW - Leibniz Information Centre for Economics.
    19. Ayodele Asekomeh & Obindah Gershon & Smith I. Azubuike, 2021. "Optimally Clocking the Low Carbon Energy Mile to Achieve the Sustainable Development Goals: Evidence from Dundee’s Electric Vehicle Strategy," Energies, MDPI, vol. 14(4), pages 1-23, February.
    20. Taghizadeh-Hesary, Farhad & Yoshino, Naoyuki & Fukuda, Lisa & Rasoulinezhad, Ehsan, 2021. "A model for calculating optimal credit guarantee fee for small and medium-sized enterprises," Economic Modelling, Elsevier, vol. 95(C), pages 361-373.

    More about this item

    Keywords

    Credit; Energy; Project; Performance;
    All these keywords.

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rbs:ijfbss:v:9:y:2020:i:4:p:47-57. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Hasan Dincer (email available below). General contact details of provider: https://edirc.repec.org/data/ssbffea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.