Strategies adopted by the Nairobi City water and sewerage company
Poor performance of urban water provision and public utilities in developing countries has led to calls for reduction in the role of the State and the increased role of the Private Sector in what had traditionally been the domain of the public service Atak (2004). The Provision of Water and Sewerage Services has for a long time been characterized by inefficient management and poor investment. Implementation of the commercialization process in bits and pieces while tackling each and every isolated problem separately proved to be ineffective and time wasting. Poor state of water and sanitation services has in the recent past attracted a lot of public interest. The public blamed the local authorities for the poor services. The move to commercialize these services to improve on efficiency in services provision has been echoed by both public and the executive arm of the Government. This study was conducted in the period between August and September, 2007 with the objective of establishing the strategies used by the Nairobi City Water and Sewerage Company and the challenges the company faces in the implementation of strategy. The research was a case study and the data was collected using a semi-structured questionnaire sent to the managing director, the five directors of the company and five regional managers. From this study, it was found that the company uses more of focus-cost leadership strategy than other strategies but a combination of generic strategies developed by Michael Porter are more pronounced in the company. The major challenges facing the company in implementation of strategy in the firm was found to be huge financial resources required to purchase equipment and hire and retain skilled staff. The results of this research will be invaluable to the company, the government, private water companies and researchers.