Empirical Influence of Social Acceptance Risks on the Performance of Public-Private Partnership Renewable Energy Projects in Kenya

Public-private partnerships (PPPs) are widely considered a prudent response to the problem of limited public funding in energy infrastructure development. However, social acceptance risks represent a major inhibiting factor that negatively affects the performance and subsequent financing of renewable energy projects. This study investigated how social acceptance risks influence the performance of PPP renewable energy projects in Kenya, focusing specifically on geothermal energy projects. Guided by a pragmatic paradigm, the study employed a mixed-methods approach incorporating both correlational and descriptive survey research designs. Quantitative data was collected using a self-administered questionnaire, while qualitative data was gathered via an interview guide. From a target population of 769 relevant employees at the Kenya Electricity Generating Company Limited (KenGen), a sample size of 263 respondents was determined using the Yamane formula. Descriptive analysis utilized mean scores and standard deviations, while inferential analysis employed Pearson's Product-Moment Correlation (r) and linear regression modeling, with F-tests for hypothesis testing. Out of 263 distributed questionnaires, 207 were completed and returned, representing a 78.7% response rate. The regression model revealed that social acceptance risks exert a statistically significant influence on the performance of PPP renewable energy projects, F(1, 205) = 96.135, p < 0.001, accounting for 31.9% of the variance (R² = 0.319). The study therefore rejected the null hypothesis in favor of the alternative hypothesis, concluding that higher social acceptance risks significantly degrade project performance. Key risk sub-factors such as inadequate community participation, low project awareness, environmental pollution concerns, and unresolved land compensation issues were identified as negative drivers. The study recommends robust public participation, participatory planning frameworks, and transparent stakeholder engagement strategies during the project formulation and implementation phases to cushion renewable energy PPPs from social acceptance shocks.

Social acceptance risks, Project financing, Public-Private Partnerships (PPP), Geothermal Renewable Energy, Stakeholder theory.

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