Strategic Resource Allocation and Performance of Kisumu Water and Sewerage Company, Kenya

Abstract

Kisumu Water and Sewerage Company has consistently struggled to achieve its envisioned accepted performance range of 80-90% set by the Water Sector Regulatory Board standards, for instance, the company performance was estimated at 76% against business plan target of 80% despite having unlimited access to government subsidies, donor grants, commercial loans and enabling policy environment based on performance review of Kenya’s water services sector 2017/2018. This study sought to establish the influence of strategic resource allocation on performance of KIWASCO. The study adopted a correlation research design with a sample size of 68 respondents selected through Stratified random sampling and data collected using a semi-structured questionnaire. Both descriptive and inferential statistics of correlation and regression were used. The study established a significant influence of resource allocation (p<0.001) on organizational performanceat 5% level of significance. It was concluded that for desired performance of KIWASCO to be realized, effective resource allocation should be done to increase investments in infrastructural expansion and rehabilitation, wastage reduction, improved servicequality, maximized consumer services and improved cash flow. The study recommends that the WASH sector reforms should prioritize resource allocation for implementation of strategies. Future research should explore the moderating role of strategic leadership in similar companies and trends across business periods within similar regulatory context.