Effect of Monitoring and Evaluation Tools on the Performance of Housing Projects in Kenya

Abstract

The performance of housing projects in Kenya continues to attract scrutiny due to recurring challenges such as cost overruns, project delays, and quality shortfalls that hinder the achievement of affordable housing goals. This study examined the influence of Monitoring and Evaluation (M&E) tools on the performance of housing projects, focusing on the Two Rivers Development Project by Centum Real Estate as a case study. The objectives of the study were to: (1) establish the effect of quantitative M&E tools on housing project performance, (2) determine the effect of qualitative M&E tools on performance, (3) assess the effect of planning and analysis tools on performance, (4) evaluate the effect of technological tools on performance, and (5) examine the moderating role of organizational capacity in the relationship between M&E tools and project performance. The study adopted a descriptive research design grounded in Results-Based Management (RBM) and Systems Theory, emphasizing accountability, feedback, and outcome-based decisionmaking. The target population comprised 163 project staff involved in planning, implementation, and supervision at the Two Rivers Project. A census approach was used, and data were collected using a structured questionnaire. A pilot test was conducted on 10% of respondents to assess reliability, yielding a Cronbach’s alpha of 0.812, confirming internal consistency. Data were analyzed using SPSS version 28, employing descriptive statistics, correlation, and multiple regression analyses. Diagnostic tests for normality, multicollinearity, and homoscedasticity confirmed model validity. Results showed a strong positive correlation between the application of M&E tools and housing project performance (r = 0.734, p < 0.05). Regression analysis revealed that quantitative tools (β = 0.286, p < 0.05), qualitative tools (β = 0.249, p < 0.05), planning and analysis tools (β = 0.213, p < 0.05), and technological tools (β = 0.198, p < 0.05) significantly influenced project performance. Moreover, organizational capacity exhibited a significant moderating effect (β = 0.154, p < 0.05) on the relationship between M&E tools and performance, suggesting that strong institutional structures amplify the positive impact of M&E systems. The study concludes that integrating diverse M&E tools enhances cost efficiency, timeliness, quality, and stakeholder satisfaction in large-scale housing projects. It recommends that Centum Real Estate and similar developers institutionalize comprehensive digital M&E frameworks, strengthen staff capacity-building programs, and adopt participatory monitoring systems to ensure accountability and sustainability. The study contributes to empirical and theoretical discourse on project management by demonstrating that structured and technology-enabled M&E systems are critical drivers of performance within Kenya’s private housing sector.