Abstract
Donor-funded projects play a significant role in Kenya's socio-economic development, yet many continue to experience delays, cost overruns, and accountability challenges despite increased investment in digital monitoring systems. This study examined the effect of digital project monitoring tools on the performance of donor-funded projects in Nairobi City County, Kenya. Specifically, the study evaluated the influence of data accuracy and reliability, and feedback and corrective mechanisms on project performance. The study was guided by the Resource-Based View Theory and Accountability Theory. A descriptive correlational research design was adopted. The target population comprised 185 donor-funded projects operating in Nairobi County, from which a sample of 126 respondents was selected using stratified and simple random sampling techniques. Primary data were collected using structured questionnaires, and a pilot study was conducted to establish instrument validity and reliability. Quantitative data were analysed using descriptive statistics, Pearson correlation, and multiple linear regression with the aid of SPSS version 28. Out of the 126 questionnaires administered, 118 were returned, representing a response rate of 93.7%. The findings revealed that both data accuracy and reliability, and feedback and corrective mechanisms had positive and statistically significant effects on project performance. Correlation analysis showed strong positive relationships between data accuracy and reliability and project performance (r = 0.702, p < 0.05), and between feedback and corrective mechanisms and project performance (r = 0.688, p < 0.05). Regression results indicated that data accuracy and reliability (β = 0.245, p = 0.001) and feedback and corrective mechanisms (β = 0.218, p = 0.001) significantly predicted project performance. The overall regression model was statistically significant (F = 106.972, p < 0.001) and explained 75.2% of the variation in project performance (R² = 0.752). The study concludes that effective digital project monitoring tools enhance project performance by improving data quality, accountability, evidence-based decision-making, organisational learning, and timely corrective action. The study recommends that implementing agencies strengthen data governance practices, institutionalise structured digital feedback systems, invest in staff capacity building, and integrate monitoring platforms to improve the performance and sustainability of donor-funded projects.
Keywords: Digital project monitoring tools, data accuracy and reliability, feedback and corrective mechanisms, project performance, donor-funded projects, Nairobi City County.