Cost Control Mechanisms and The Performance of Digital Transformation Projects in Milk Processing Firms in Kenya

The study aimed to assess how cost-control mechanisms influence the performance of digital transformation projects in milk-processing plants in Kenya. A descriptive research design was used, focusing on ICT staff, project managers, and finance officials in milk processing companies in Kenya. The study targeted 51 licensed milk processing plants in Kenya. The unit of observation was 561 individuals involved in digital transformation projects in milk processing in Kenya and a sample of 234 was used. The study cost control (B = .438, β = .391, p < .001) emerged as the strongest predictors of digital project performance, highlighting the importance of accurate forecasting and real-time monitoring in reducing overruns and enhancing efficiency. The study reinforces the Activity-Based Costing theory that cost allocation based on actual resource consumption by activities rather than traditional cost accounting. In addition, it emphasizes the need to adopt digital transformation in milk processing sector. Cost control is significant to ensure improved performance of digital transformation projects and all projects. Firms need to implement real-time financial tracking systems and performance dashboards to monitor expenditures throughout project lifecycles. Strengthening accountability through regular audits and variance analysis will enhance efficiency and minimize wastage. Keywords: Cost Control, Mechanisms, Performance, Digital Transformation, Projects, Milk Processing Firms, Kenya