EFFECTS OF STIMA LOAN DEPOSIT AND COST ON THE PROFITABILITY OF KENYA POWER
Abstract
The purpose of this paper was to establish the effects of stima loan deposit and cost on Kenya Power profitability. The increase in Kenya Power customer base has been a major challenge as majority of the customers especially the rural customers cannot afford to connect to the power grid due to high connectivity costs. Descriptive research design was used for this study and the target population was all 47 County managers in Kenya where respondents were selected using stratified sampling technique. The sample size used was 42 respondents and primary data was obtained by use of questionnaires whereas secondary data was obtained from the Kenya Power, Coast region. The study recommends that the Kenya Power should lower the amount required as deposit so as to increase the uptake stima loan by customers and that stima loan processing fee should be factored as major income to the Kenya Power as it increases profitability of the company, also the management of Kenya Power should charge connection fee relative to proximity to transformer.
Key words: Stima Loan, Loan Deposit, Cost, Repayment Period
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DOI: http://dx.doi.org/10.61426/sjbcm.v4i2.427
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