RELATIONSHIP BETWEEN REVENUE GENERATION STRATEGIES AND PERFORMANCE OF WATER SERVICE PROVIDERS IN KENYA, A CASE STUDY OF HOMA BAY WATER AND SEWERAGE COMPANY LIMITED

MARK MWANGO, DR. DENNIS O. JUMA (Ph.D)

Abstract


To realise adequate reliable safe and sustainable water in Kenya is elusive for most water service providers with special reference to public utilities which are grappling with the reality of not being able to break even in their operations. Estimates showed that access to water in Kenya is currently at 59% and sanitation 32%. This situation is associated to inability by water service providers to meet the set revenue generation strategies, Homa-Bay water and Sanitation Company Limited (HOMAWASCO) included. The existing literature studies on the factors influencing revenue generation by water utilities have led to varied results ranging from those which support a low and significant relationship to those which are supporting moderate and insignificant relationship. This study therefore articulated the problem by finding the relationship between revenue generation strategies and performance of water services in Kenya guided by four objectives so as to establish the relationship between goal setting and performance of Water Service Providers in Kenya, to determine relationship between customer sensitization and performance of Water Service providers in Kenya, to establish relationship between staff capacity building and performance of Water Service Providers in Kenya and to establish relationship between service expansion and performance of Water Service Providers in Kenya. The study utilized simple random sampling technique to select the sample from the target population. The target population was from HOMAWASCO employees. The entire population of HOMAWASCO was selected and a structured questionnaire was used for data collection as the study used primary data. Statistical Package for Social Sciences (SPSS) was used in analyzing the data where the results were presented in tabular form. Correlation analysis was conducted to establish the relationship between revenue generation strategies and performance of water service providers in Kenya. From the analysis done, the researcher found that revenue generation strategies greatly influence the performance of water service providers thus recommended that the water service providers should have clear policies governing the revenue collection process as clear policies defines the channels to be used to reach the clients and how the clients are given services to their expectations thus customer satisfaction leading to more demand of the product as the company generates more income.

Key words: Goal setting, Customer sensitization, staff capacity, Service expansion

CITATION: Mwango, M. O. & Juma, O. D. (2020). Relationship between revenue generation strategies and performance of water service providers in Kenya, a case study of Homabay Water and Sewerage Company Limited. The Strategic Journal of Business & Change Management, 7 (4), 1176 – 1190.


Full Text:

PDF

References


Beesley, A. D. &Shebby, S. (2010). Evaluating capacity building in education: The North Central Comprehensive Center. Paper presented at the Annual meeting of the American Educational Research Association, Denver, Colorado, May 2010.

Fader, P. (2012). Customer Centricity: Focus on the Right Customers for Strategic Advantage. Philadelphia: Wharton University Press.

Vargo, S., Lash, R. (2006). New dominant marketing logic development.Russian Journal of Management, 2, pp. 73-106.

Frambach, R.T, Fiss, P.C & Ingenbleek, P.T.M (2015). How important is customer orientation for firm performance? A fuzzy set analysis of orientations, strategies, and environments, Journal of Business Research, 69, 1428-1436

Brannback, M. (2011). The Concept of Customer-Orientation and Its Implication for Competence Development, Turku School of Economics and Business Administration

Ogbeiwi, O. (2018). General concepts of goals and goal-setting in healthcare: A narrative review. Journal of Management & Organization, 1-18

Locke, E. A., & Latham, G. P. (1990). A theory of goal setting & task performance. London, Prentice-Hall, Inc.

Fitsimmons, G. (2008). Time management part 1: Goal setting as a planning tool. The Bottom Line, 21(2), 61–63.

Harris, J., & White, V. (2013).Oxford dictionary of social work & social care. Oxford: Oxford University Press.

Bratton, J., Callinan, M., Forshaw, C., & Sawchuk, P. (2007).Work and organizational Behaviour. Hounsmill, Basing stroke: Palgrave Macmillan

Oracle (2012).Goal setting: A fresh perspective. An Oracle white paper. USA: ORACLE Taleo Cloud Service

Pritchard, R. D., Harrell, M. M., Diaz Granados, D., & Guzman, M. J. (2008). The productivity measurement and enhancement system: a meta-analysis. Journal of Applied Psychology,93(3), 540–567

Saari, L. M. (2013). Goal setting and organizational transformation.In E. A Locke, & G. P. Latham (Eds.), New developments in goal setting and task performance. New developments in goal setting and task performance (pp. 262–269). New York, NY: Routledge.

Lee, J. (2015). Helping your patients set achievable goals. AADE in Practice, 3(5), 42–45.

Kramer, W. S., Thayer, A. L., & Salas, E. (2013).Goal setting in Teams.In E. A Locke, & G. P. Latham (Eds.), New developments in goal setting and task performance (pp. 288–309). New York, NY: Routledge.

Alao D, and Alao E. (2012) “an evaluation of the management of performance appraisal in Kwara State Local Government System (1988-2011)” International Review of Business Research Papers, 2(2), 124-131

American Water Works Association (2000). Principles of Water Rates, Fees and Charges USA. American Water Works Association

Bairetti, A., Kingdom, W. And Ginnekem.M (2006), Characteristics of Well Performing Water Utilities. Water Supply and Sanitation Working Note www.siteresources.Worldbank/.Org (Assessed On 23 April 2015)

Banker, R., Chang H., Pizzin M. (2006), The AWWA (American Water works Association).2010 Effective Utility Management: A prime for Water and Wastewater Utilities. Denver, Balanced Scorecard: Judgmental effect of performance Measures linked to strategy account REV 79(1) 1-23

Best & Khan (1993) Research In Education. Edward Arnold. Boston.

Borg and Gall (1996) Educational Research, an Introduction. Sixth Edition.New York Longman Publishers.

Bryman, A., & Cramer, K. (1997).Qualitative Data Analysis with SPSS for Windows. A Guide to Social Scientists.London Sage Publication.

Eisenhardt, K.M., 1989, Agency theory: An assessment and Review, Academy of management Review

Eskaf, S., Hughes J., Tiger, M. and Bradshaw K. (2014). “Measuring and Mitigating Water Revenue in North America” finance Centre at the University of North Carolina Capitol Hill

Etuk-Udo (2003); Principle of Account for West Africa, Oxford University Press, Nigeria

Fayemi (1991) principles of local government accounting in Nigeria, Arabian Journal of BusinessandManagementReview (Nigeria Chapter), 2 (2) 212-218.

Grawal, A. (2008).an examination of factors affecting revenue generation in water utilities in Ghana, Journal of Corporate Finance , 4, 221-229.

Goldratt E.M. (1984). The Goal Excellence in Manufacturing. Croton-on-Hudson, NY: North River Press, INC

Government of Australia (2009) Key financial viability measures and ratios, Regulatory practices Forum.

Gujarati D.N. &Dawn, CP (2009) Basic econometrics Mc Graw Hill international edition.

Hassan, M. H. (2001). Revenue generation concepts for change environment, managerial Auditing Journal, 21 (1), 63-80.

Hazel, C. (2005). Tax Policy in Developing countries: What can be learned from OECD experience? Journal of Public Economics, 93, 855-866

Hepworth, N.P. (1976). The finance of local Government, Gorge Allen, London

Janssens, J.G (2013), NRW Reduction in Urban Utilities Experiences and Challenges In The Mediterranean Region, Australasian Accounting Business and Finance Journal, 2, 23-25

Jensen, M.C and W.H Meckling, 1976, Theory of the firm: Managerial behavior, Agency

Jussi, N and Petri, S. (2004), “Does Agency Theory Provide a General Framework for AuditPricing?” International Journal of Auditing, 8 (2), 253-262

Kenya National Bureau of Statistics (2009).Kenya population and housing census, Government Printer Nairobi.

Kaplan and Norton (2012) The Strategy focused organization. New York Harvard Business School Press.

Kibuka, F. and Wanyoike D. (2013) “Assessment of Factors Affecting Sustainability of Rural Water Supply in Nyandarua County Kenya. A case of Kangui water scheme,” International Journal of Science and Research, 4 (2), 145-156

Kihumba G.W (2013) Factors Influencing Revenue Generation on Water Services Providers in Nyeri County Kenya. Journal of Business Systems, Governance and Ethics, 7(1), 32-46.

Kothari C.R (1990). Research Methodology, Methods and Techniques, 2nd Revised Edition. New Age International Publishers

Lake Victoria South Water Services Board (2012) Board Website (www.lvswaterboard.go.ke) (assessed on 23rd April 2015).

MillichampA .H (1992). Foundation Accounting with Information Technology applications Third Edition, D.P publications Limited London.

Ministry Of Water and Irrigation, (2007).The National Water ServicesStrategy 2007-2015

Meigs W., O. Whittington, and R. Meigs.1982-Principals of Auditing. 7th edition; Homewood Illinois: Richard Irwin.

Mugenda, O. and Mugenda, A, (2003). Research Methods Nairobi. Acts Press.

Mwangi F. k, and Wanyoike D. (2014) Assessment of factors affecting sustainability of rural water supplies in Nyandarua County Kenya; a case of Kangui water schemes. International Journal of Science and Research, 2, 5-8.

Ncube, B. (2011) Assessment of Performance of Urban Water Supply in the Town of Bulawayo Zimbabwe,. International Journal of Arts andCommerce Research, 3 (1), 29-34

Olwa, B. (2012). Non-Revenue Water Management among Water Service Providers in Kenya. Kenya Institute of Public Policy Research and Analysis Discussion Paper.

Onsumu Lilian (2013). Factors Influencing Financial Viability of Water Service Provider in Kenya a Case of Gusii Water and Sanitation Company, International Journal of Arts andCommerce,2,(9) 1-21

Orotho A.J, (2005). Elements of Education and Social Sciences Research Methods. Nairobi Masola Publishers

Pratt, J.W., and R.J. Zeckhauser (1985) Principals and agents: The structure of Business. International journal of Business and management, 5, 15-26

Puttick G, Van Eish 2008,ThePrinciples and PracticeofAuditing: Business and Economics. Creda Communication Cape town.

Rezaee, Z., Elam, R and Sharbotoghlie, A. (2001). “Continuous Auditing: The Audit of the Future”, ManagerialAuditingJournal, 16 (3), 150-158




DOI: http://dx.doi.org/10.61426/sjbcm.v7i4.1852

Refbacks

  • There are currently no refbacks.


Creative Commons License
This work is licensed under a Creative Commons Attribution 3.0 License.

PAST ISSUES:
20242023202220212020201920182017201620152014
Vol 11, No 2 [2024]Vol 10, No 4 [2023]Vol 9, No 4 [2022]Vol 8, No 4 [2021]Vol 7, No 4 [2020]Vol 6, No 4 [2019]Vol 5, No 4 [2018]Vol 4, No 4 [2017]Vol 3, No 4 [2016]Vol 2, No 2 [2015]Vol 1, No 2 [2014]
 Vol 11, No 1 [2024] Vol 10, No 3 [2023] Vol 9, No 3 [2022]Vol 8, No 3 [2021]Vol 7, No 3 [2020]Vol 6, No 3 [2019]Vol 5, No 3 [2019]Vol 4, No 3 [2017]Vol 3, No 3 [2016]Vol 2, No 1 [2015]Vol 1, No 1 [2014]
  Vol 10, No 2 [2023] Vol 9, No 2 [2022]Vol 8, No 2 [2021]Vol 7, No 2 [2020]Vol 6, No 2 [2019]Vol 5, No 2 [2018]Vol 4, No 2 [2017]Vol 3, No 2 [2016]  
  Vol 10, No 1 [2023] Vol 9, No 1 [2022]  Vol 8, No 1 [2021]Vol 7, No 1 [2020]Vol 6, No 1 [2019]Vol 5, No 1 [2018]Vol 4, No 1 [2017]Vol 3, No 1 [2016]   


Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.