Managing change at Nairobi City Water and Sewerage Company Limited
Abstract
Change is the transition from one state to another with the focus of being different.
Organisations must change because their environment changes on a continuous basis.
Some changes are reactions to external threats whereas others are proactive to seize
opportunities and manage the environment. Change management is the use of systematic
methods to ensure that an organisation change can be guided in the planned direction,
conducted in a cost effective manner, completed within the targeted timeframe and with
the desired results.
The present institutional arrangement for the management of water sector in Kenya can
be traced to the launch of the National Water Master Plan in 1974. The primary aim of
this plan was to ensure availability of portable water at a reasonable distance, to all
households by the year 2000. In 1980s, the Government started experiencing budgetary
constraints and it became clear that on its own it would not deliver to all by the year
2000. Between 1990 and 1992, Japan International Cooperation Agency (JICA) in
collaboration with the Kenya Government developed National Master Plan that set out a
long-term plan for the implementation of the much-needed reforms in the water sector.
Key direction of the water sector was eventually outlined in the Sessional Paper No. 1 of
1999, which emphasised the need to urgently review the Water Act Chapter 372. This
review culminated in the enactment of Water Act 2002 whose main thrust was the
separation of roles in the policy formulation and direct service delivery.
Nairobi City Water and Sewerage Company Limited (NCWSC) formation arose from the
enactment of the Water Act 2002 as a water service provider to Nairobi residents and its
environs. NCWSC which initially operated as Nairobi City Council Water and Sewerage
Department underwent privatization process which led to major organisational changes.
This study sort to establish how NCWSC managed the introduction of Government
reforms of the Water Act, 2002 and the accompanying challenges in the implementation
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of these changes. The study was conducted using a case study research design. The
researcher conducted in-depth interviews by use of interview guide with NCWSC‟s three
functional directors and three managers who were involved in the change program.
Information was also obtained from the organisation records which were useful in the
compilation of the study report. The analysis of the data was conducted by use of content
analysis which is a research tool used to determine the presence of certain words or
concepts within texts or sets of texts.
The external environment triggered major changes in Water and Sewerage Department of
Nairobi City Council. The external forces were from the Government reforms which led
to the privatisation of this department. The research established that the change
introduced in the organisation affected its structure, culture, Human Resource
Management, systems and technology. Various challenges were experienced in the
process of managing change which included the challenge of initiation, sustaining
momentum and restructuring. There was also the problem of resistance to change which
included the behavioural and systemic resistance and there was lack of proper integration
of the newly employed and the seconded employees from Nairobi City Council.
The results of this study can be used as a lesson to other parastatals and Government
institutions that are undergoing or are likely to undergo similar reforms. It is also useful
for the academicians and other researchers wishing to carry out further research. The
study will contribute to existing literature in the field of change management.
Due to time constraints, the research findings were obtained from three functional
directors and three managers at the Headquarters. It would have been important to obtain
the views and opinions of other personnel based within the regional offices and the nonmanagement
staff. To add value to this research, it would have been good to obtain the
views from customers, suppliers and competitors. Further study is recommended to be
conducted in future, as the change effort at NCWSC is still ongoing. Study of institutions
like Kenya Railways that has recently undergone a transition from Government into
private ownership is also recommended for purposes of comparability.
Publisher
University of Nairobi
Description
MBA Thesis