Effect of Budgeting Practices on the Performance of Amahoro Stadium Renovation Project in Rwanda

Nayinganyiki Silas & Martin Kimemia Gathiru
School of Business and Economics
Department of Management, Mount Kenya University
Email: Nayisi08@gmail.com

Abstract: This study investigated the effect of budgeting practices on the performance of the Amahoro National Stadium renovation project in Rwanda. Employing a descriptive research design, data were collected from 124 employees involved in financial resource management, project planning, and execution, drawn from a target sample of 136 respondents, yielding a 91.1% response rate. The demographic profile comprised 61% male and 39% female respondents, with the majority aged 26–35 years (41%), holding bachelor’s degrees (51%), and possessing 1–3 years of professional experience (40%), ensuring diverse perspectives on budgeting practices and project performance. Correlation and regression analyses examined the relationship between budgeting practices and project performance, revealing a very strong positive correlation (r = 0.994, p < 0.01). Regression analysis demonstrated that budgeting practices accounted for 98.9% of the variance in project performance (R² = 0.989, F = 10,528.783, p < 0.001), with a regression coefficient of β = 0.994 (t = 102.61, p < 0.001). The study concluded that effective budgeting practices including accurate cost estimation, clear budget communication, timely adjustments, and contingency planning significantly enhance project performance across timeliness, cost adherence, and quality outcomes. These findings offer valuable insights for construction project managers and stakeholders seeking to strengthen project delivery through sound financial planning and robust budgetary control mechanisms in large-scale infrastructure developments. The study recommends strengthening cost estimation accuracy, institutionalizing regular budget reviews, enhancing financial forecasting capabilities, expanding contingency planning provisions, and integrating budgeting with working capital management and financial reporting systems.