The Influence of Utility Efficiency on Financial Sustainability of Water Service Providers in Kenya

Abstract

The purpose of this study was to establish the influence of utility efficiency on financial sustainability among water service providers (WSPs) in Kenya. The study adopted the pragmatism research philosophy and explanatory sequential mixed design to provide empirical based solution to the financial sustainability concerns among the water service providers in Kenya. The target population constituted 616 senior managers from whom, a sample of 352 selected managers was selected and a structured questionnaire used to collect the quantitative data from the respondents. Additional data was collected using interview schedule from key informants representing the ministry of Water, Sanitation and irrigation (MWSI), Water Services Regulatory Board (WASREB), and the eight Water Works Development Agencies (WWDAs). Data collected, was coded, cleaned and analysed to obtain both descriptive and inferential statistics. These were in terms of mean, standard deviation charts, statistical tests, ANOVA and regression analyses. The findings of the study was that utility efficiency had a positive and statistically significant influence on the financial sustainability of WSPs in Kenya (r=0.368, F= 10.719 (1,250df), β= 0.273, t(251)=3.274,  p-value=0.002). Based on the findings, various recommendations were made one, there is need for each WSP in collaboration with the responsible county governments to undertake studies geared towards disaggregation of NRW, WSPs to institutionalize high levels of integrity which would reduce commercial losses, WSPs  to ensure high levels of integrity, competence and efficiency of staff at the point of hire and National Treasury and Planning together with the Water Works Development Agencies (WWDAs) should ensure efficient and effective application of infrastructure financing in order to achieve value for money for all investments.