| dc.description.abstract | The Kenya’s Vision 2030 plan has identified Energy and Petroleum sector as a key
foundation and one of the infrastructural enablers upon which the economic, social and
political pillars of its long-term development strategy will be built. However, energy and
petroleum sector in Kenya faces challenges such as low access to energy, high costs,
irregular supply as well as heavy capital investment requirements. Such challenges have
made Energy and Petroleum companies to maintain either excessive or inadequate working
capital levels. The objective of the study was to establish the effect of working capital
management on the financial performance of Energy and Petroleum Companies listed at
the Nairobi Securities Exchange. The census research adopted a correlation design. A data
collection sheet was used to collect secondary data from the published financial statements
of all Energy and Petroleum companies listed at Nairobi Securities Exchange for a period
of eight years between 2007 and 2014. Both descriptive and quantitative analyses were
adopted. Pearson correlation, regression and ANOVA analysis were conducted. The
research indicated that WCM influence the ROA significantly. 17.8% of the variations in
profitability was influenced by variations in WCM. The study established that the influence
of WCM on profitability is statistically significant. It is therefore incumbent upon the
Finance Managers of Energy and Petroleum companies listed at NSE to understand the
business operations, and put in place robust WCM policy framework because of its
implications on the financial performance of these companies. Adoption of these
recommendations will lead to a vibrant and profitable Energy and Petroleum sector which
is key to the achievement of Kenya’s Vision 2030. | en_US |
