The Effect of Working Capital Management on the Performance of Water Service Providers in Kenya
Abstract
The research aims to study the effect of working capital management on the
performance of Water Service Providers (WSPs) in Kenya. Poor performance and
inability to meet short term obligations has led WSPs to make untimely payments to
equipment suppliers. This affects their overall objective and mandate which is to
effective supply of water and sanitation services to their consumers. The objective of
the study was therefore to investigate the effect of working capital management on the
performance of WSPs in Kenya. The study adopted an explanatory research design
and a population of 65 Urban WSPs in Kenya. The study conducted a census on all
the 65 WSPs and used secondary data spanning a 5 year period (2010 to 2014) from
the Water Service Regulatory Board (WASREB) and Kenya National Audit Office
(KENAO) reports. Based on the results the study therefore recommends that urban
WSPs in Kenya should apply effective working capital management strategies to
reduce account receivable days translating to more investments for efficient service
delivery; effective liquidity management strategies to reduce current liabilities
translating to more allocation of cash for operational and maintenance and finally
effective payable management strategies that will increase ROA and effectively
improved performance
Publisher
University of Nairobi
Description
Thesis