Title: Moderating effects of project environment on financial risk management and safety of road construction projects in Kenya

Authors: Nicholas K. Kirui; Charles M. Rambo; Stephen W. Luketero

Addresses: Department of Project Planning and Management Science, University of Nairobi, Nairobi City, Kenya ' Faculty of Business and Management Science, University of Nairobi, Nairobi City, Kenya ' Faculty of Business and Management Science, University of Nairobi, Nairobi City, Kenya

Abstract: Infrastructure development spurs economic growth, hence maintaining safety standards in road construction projects is essential. Financial risks, including fluctuating exchange rates and interest rates compound these challenges, making effective financial risk management essential. This study employs a mixed-methods approach, obtaining quantitative and qualitative data from various stakeholders involved in road projects by the Kenya Urban Roads Authority (KURA), Nairobi County. The research reveals a strong positive relationship between financial risk management and safety outcomes. Effective financial risk management, like use of financial risk registers and management of liquidity and inflation risks significantly enhances road construction safety. Project environment, encompassing, political, economic, technological, and environmental factors, moderates this relationship. Key diagnostic tests affirm the robustness of the study's regression models, indicating no significant heteroscedasticity or multicollinearity. The findings underscore the importance of integrating comprehensive financial risk management practices and understanding of the project environment to optimise safety in road construction projects.

Keywords: construction; environment; finance; management; project; risk; road; safety; Kenya.

DOI: 10.1504/IJPOM.2025.148695

International Journal of Project Organisation and Management, 2025 Vol.17 No.3, pp.327 - 352

Received: 30 Jul 2024
Accepted: 09 Mar 2025
Published online: 19 Sep 2025 *

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