Effect of Risk Avoidance on Performance of Devolved Governments in Kenya

Abstract

Purpose: Risk avoidance are critical techniques in the elimination of threats, undertaking and submissions that can negatively influence an institution or government gains and investment decision worldwide. By halting the activity that can lead to likely problems, the chance of incurring and loss is eliminated. However, devolved system of government studies on risk avoidance are scanty in Kenya. The main purpose of the study was to investigate the effect of risk avoidance and how it influences performance of devolved governments in Kenya. Methodology: The study was anchored on the agency and stakeholder theory. A correlational research design was used based on the nature of data collected. The study was analytical and hence it took a pragmatic philosophical reasoning. The study targeted 423 respondents in the 47 devolved governments departments in Kenya. A sample size of 381 respondents from the devolved governments departments was drawn from the targeted population using stratified sampling technique. The study used primary data from the use of questionnaires. Data was analyzed using Statistical Packages for Social Sciences version 24 utilizing inferential statistics which involved testing of the hypothesis at 95% confidence level and also descriptive statistics (frequencies, percentages, mean and standard deviation). Data was presented by use of tables. Findings: The outcomes indicated that risk avoidance indicator had a standardized Beta coefficient of 0.341, an absolute t-value of 5.609 and p˂0.05 (0.03) which indicated that risk avoidance had a statistically considerable effect on performance of devolved governments in Kenya. Unique Contribution to Theory, Practice and Policy: The study suggests that devolved governments and key stakeholders should upgrade, embrace and ensure that risk avoidance techniques are in place in the devolved governments so as to improve on performance of devolved government.