The study aimed at analyzing capital budgeting as a strategy for project performance in Kenya Rural Roads Authority (KeRRA). It was guided by the following objectives: to establish the effects of policy on project performance, to find out the extent to which expertise affect project performance, and to establish the extent to which financial resources affect project performanceThe target population was 15 project managers and 15 financial managers of Kenya Rural Roads Authority (KeRRA). Purposive sampling technique was used to select the project managers and financial managers to participate in the study. A structured questionnaire was developed and utilized in this study. Questionnaires were given to project managers and financial managers. The researcher conducted a multiple regression analysis so as to determine the relationship between the project management and variables of the study.
The study found that Policy on Budgeting, Expertise, Financial Resources, Accountability and Re-Training measures affected the performance of project to a great extent. The study concluded that the decision of whether to accept or deny an investment project as part of a company's growth initiatives, involves determining the investment rate of return that such a project will generate. Based on the findings the study recommended that effective budget implementation at the KeRRA should be facilitated through capacity building, robust systems and processes, prioritization close monitoring and evaluation. All stakeholders should get involved in budget execution in enhancing the overall budget implementation.
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