Development banking and capital project performance in Kenya: a case of development bank of Kenya

Abstract

The study examined the relationship between development banking and project performance at the Development Bank of Kenya. In order to achieve this goal, the following objectives were developed; examine the effect of interest rates on project performance; establish the contribution of working capital on project performance; and look at the impact of capital structure on project performance at the Development Bank of Kenya. The study undertook a single case study design with a population of 111 projects from which a sample of 88 was selected for the study. Self-administered questionnaires were used to collect responses. Measurement of the study development banking relationships and project performance was done and subjected to rigorous data processing and analysis using the relevant statistical computer software packages. From the findings, the relationships between the dimensions of development banking; interest rate, working capital, capital structure, and project performance were found to be positive and significant. Results from regression analysis showed interest rate, working capital, and capital structure were significant predictors of project performance. The study recommends, therefore, that since the model could only explain 57.1% of the variance of project performance at DBK.