EXCHANGE RATE VOLATILITY AND STABILITY OF ONGOING MULTI-CURRENCY GRANT-FUNDED PROJECTS

Globally, projects have sourced funding from predefined fonts or multiple fonts across borders exposing them to currency fluctuations in their financial operations. This study purposed to analyze influence of exchange rate volatility and stability of ongoing multi-currency grant-funded projects at the Catholic University of Eastern Africa, Langata Campus. The study utilized Real Options Theory and Stakeholder Theory. The target population for the study consisted of stakeholders involved in the projects, selected from a population of 380 from 14 developmental projects within the university. Utilizing the Yamane formula, 191 respondents were selected to form the study sample. A purposive sampling approach was used for key project stakeholders, and simple random sampling for the others. Data was collected through structured questionnaires. Data analysis used SPSS 25. The study sampled 151 of 191 respondents. The study findings established that exchange rate volatility had a statistically significant negative impact on the stability of projects at (p < 0.05). The study emphasized the importance of careful project management and planning, particularly for multi-currency projects. Recommendations included government availing foreign exchange data, engaging professional financial bodies, and government-supported monitoring efforts. Areas for further studies included failed multi-currency projects and single currency projects to draw a parallel of common challenges and differences.