Factors Affecting Financial Performance Of Private Water Firms In Kenya: A Case Study Of Nairobi Water And Sewerage Company Ltd
By Samuel Mwangi Gachugia
For the water firms to survive in the new dispensation of privatization of privatization with limited capitations, proper management structures that generate cost savings, proper utilization of resources, reduced corruption and reduced wastage are required immense pressure on the African government by rural to urban migration has led to a strain on the resources available, especially provision of water and sanitation. The objective of this study was to assess the factors that affect the financial performance of private water firms in Kenya and focused on the pillars of the same which include management, billing system, organization management and of technology. Data was gathered through questionnaires, observations and interviews and analyzed using both descriptive and analytical approaches. This includes mode and percentages. The study found out that the N.C.W.S.C management structure does not adequately allow solving of problems and handling of grievances of the employees, is not clear as far as its internal control system is concerned and teamwork, initiative and creativity have not been adequately developed thus affecting the degree of employee participation. The billing system is not quite efficient as customer sensitization; adjustments on their negative attitude have not been properly carried out, water charges and adjustment has not been properly harmonized. As far as technological levels are concerned, there are gains that have been made and policy regarding the same should be made available to the staff. The study has recommended that the management structure should be improved to enable easy resolution of policy and employee issues, the debt problem to be sorted out as it affects performance and customer’s partnership to be strengthened. Besides there is need to improve the internal control systems and develop clear I.T policies to run the affairs of the firm. Finally more research needs to be carried out with a wider scope and population to determine more factors that affect financial performance.