RELATIONSHIP BETWEEN REVENUE GENERATION STRATEGIES AND PERFORMANCE OF WATER SERVICE PROVIDERS IN KENYA, A CASE STUDY OF HOMA BAY WATER AND SEWERAGE COMPANY LIMITED
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.
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DOI: http://dx.doi.org/10.61426/sjbcm.v7i4.1852
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