REVENUE COLLECTION STRATEGIES AND FINANCIAL SUSTAINABILITY OF WATER SERVICES PROVIDERS IN KENYA: A CASE STUDY OF MALINDI WATER AND SEWERAGE COMPANY LIMITED
REVENUE COLLECTION STRATEGIES AND FINANCIAL SUSTAINABILITY OF WATER SERVICES PROVIDERS IN KENYA: A CASE STUDY OF MALINDI WATER AND SEWERAGE COMPANY LIMITED
Kingstone Kasena Mulewa - Masters Student, Kenyatta University, Kenya
Kaplelach Samson - Department of Accounting and Finance, Kenyatta University, Kenya
ABSTRACT
Malindi water and Sewerage Company has failed to collect revenue from 18% of its customers, with revenue collection efficiency being 76% of the budget, non-cost recovery tariff and high non-revenue water losses at 28%. Generally, Malindi Water and Sewerage Company, has been performing poorly over the last two years based on financial sustainability, ranking at position 17 down from position one out of 88 regulated Water Services Providers in the country with a score of 113. The purpose of this Study was to examine the effect of revenue collection strategies on the financial sustainability of Malindi Water and Sewerage Company Limited. The study was anchored on the following specific objective: To examine the effect of revenue generation on the financial sustainability of Malindi Water and Sewerage Company Limited. To underpin the study findings, the study relied on resource dependence theory. Case study research design was adopted in this study. The study targeted 126 company employees out of which a sample size of 96 was drawn. The study used structured questionnaires to collect data from the employees. Further, a pilot study was conducted at Kilifi Mariakani Water and Sewerage Company to determine validity through Kaiser Meyer Olkin and Bartlett Test and reliability through Cronbach Alpha of the research instrument. The data was analysed using Statistical Package for the Social Sciences version 26, which applied both descriptive and inferential statistical approaches. Prior to performing inferential analysis, it was necessary to undertake diagnostic tests. Out of the 96 structured questionnaires distributed to the employees of MAWASCO as per the sample size, 285 questionnaires were returned, this represented 88.5% of the sample size. Revenue generation strategies have a significant, albeit weak, positive effect on financial sustainability (r = .232, p = .033; regression coefficient β = .239, p < .001), the descriptive statistics suggest a general consensus on the importance of these strategies in MAWASCO’s operations. The research aimed to evaluate the impact of revenue generation on the financial sustainability of MAWASCO. The findings from both descriptive and inferential statistical analyses offer a comprehensive understanding of how these factors interact and contribute to the overall financial health of the company. The strong agreement among participants on these aspects, combined with the moderate to substantial correlation and regression coefficients, points to the critical role of revenue diversification in securing MAWASCO’s financial future. The recommendations are grounded in the understanding that a multifaceted approach is crucial for the long-term financial health and stability of the organization.
