Contribution of Risk Management Practices on Service Delivery among Counties in Western Kenya

Abstract

Risk management practices including risk identification, analysis and control, as well as monitoring have been proved to be essential in reducing losses and improving profitability. However, the contribution of such practices in enhancing service delivery among devolved authorities particularly in western Kenya has not been established. Charged with the role of providing services like preschool education, agriculture, water and sanitation, roads and infrastructure, health and commerce and industry, counties in western Kenya have performed dismally in these areas. Reports reveal that an average of 80 pre-school learners share a classroom among counties in the area, only 34% and 13% of households have access to improved water sources and sanitation respectively, while over 50% of all the roads among counties in this region are considered to be in unfair state. Limited information is however available with regard to risk management practices on service delivery among these counties. The purpose of the study was to establish the contribution of risk management practices on service delivery among western Kenya counties. Specific objectives were to establish how risk identification practices affect service delivery; the effect of risk analysis and control on service delivery; and to determine how risk monitoring could impact on the service delivery. Stakeholder theory, resource based theory and new institutional economics theory guided the study. Descriptive and case study research designs were adopted on a target population of chief officers and heads of departments from 10 counties: Bungoma, Busia, Kakamega, Vihiga, Siaya, Kisumu, Homa Bay, Migori, Kisii, and Nyamira. Purposive sampling was used to obtain a sample of 100 heads of departments and 100 chief officers from whom data was collected using questionnaires. Validity and reliability of the instrument was checked via expert consultation and test retest during a pilot study on randomly sampled 20 deputy heads of departments and chief officers respectively. The study found that risk identification (~=0.188; p<0.05), risk analysis and control (~=0.006; p<O.05), and monitoring of risks (~=O.l05; p<O.05) all have significant contribution to service delivery. All the hypotheses were therefore rejected. The risk management practices together contributed 17.7% change in service delivery among the counties. The study concludes that the counties under study seem not to consider risk management practices as essential in enhancing service delivery. It was recommended that risk management framework should be formulated to guide identification, analysis, and monitoring of risks. Further research is also necessary on the impact of risk identification on service procurement among county governments in western Kenya.