International Journal of Business & Law Research 3(2):1-19, April-June 2015
SEAHI PUBLICATIONS, 2015

DETERMINANTS OF SUCCESSFUL IMPLEMENTATION OF CAPITAL EXPENDITURE PROJECTS IN THE BREWING SECTOR IN KENYA: A CASE OF EAST AFRICAN BREWERIES LIMITED

WANGARI Joseph Mbochi & Dr. Makori MORONGE2

1M.Sc. Scholar Project Management, Jomo Kenyatta University of Agriculture and Technology, Kenya
2Lecturer, Jomo Kenyatta University of Agriculture and Technology, Kenya
*Email of corresponding author: jsphmbochi@gmail.com

ABSTRACT

In spite of the huge efforts and investments in the implementation of Capital Expenditure (CapEx) projects by many organizations, the success of such projects is the major problem as they are falling out at an alarming rate. The study examined the determinants of successful implementation of CapEx projects in the brewing sector in Kenya. The study was guided by the following objectives to establish the extent to which; technical complexity, high constraints on cost and time constraints ,project governance and external factors contributed to successful implementation of CapEx projects in EABL. The study adopted descriptive survey and case study design based on EABL. The study targeted 580 employees at EABL Head Quarters. A sample of 58 employees or 10% of the target population was considered use purpose survey method. The data was collected through the use of questionnaires, interviews and observation methods. Quantitative data was analyzed with help of SPSS version 20 and MS excel. The study findings showed that technical complexity, high constraints on cost and time constraints, project governance and external factors affected the successful implementation of CapEx projects brewing sector in Kenya. Technical complexity was the most significant factor and had a positive significant relationship at 5% level of significance and 95% confidence level. Keywords: Capital Expenditure, project governance, technical complexity, project management.