An investigation on financial performance of water service providers licensed by Rift Valley Water Services Board

Abstract

Financial analysis is the process of identifying the financial strengtho' and weakness of the firm from the available accounting data and financial statements. The focus of financial analysis is on key figures in the financial statements and the signifIcant relationship that exists between them. The analysis of financial statements is a process of evaluating relationship between component parts of fmanciel statements to obtain a better understanding of the fum's position and perfonnance. The objective of this study was to investigate on financial performance of water service providers licensed by Rift Valley Water Services Board. The study adopted a descriptive survey method.

The target population for the study was all water service providers licensed by Rift valley Water Services Board which are ten (10) within its jurisdiction. The study adopted census method to get a sample. From the ten water service providers, four senior managers from different departments were purposively sampled to fill in the questionnaires.

Descriptive inferential statistics and frequencies were used to analyze the various variables using Statistical Package for Social Sciences. The analysis has shown that predictor variables are highly correlated with financial performance. From the finding of the study, it can be concluded that Rift Valley Water Services Board financial performance is poor since the WSPs are perfonning below average. The financial performance has been affected by high levels of UFW across all the WSPs, low profItability ratio among majority WSPs, poor debt ratio and management and inefficient billing.