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Chege Muthoni Elizabeth - Master of Business Administration, Kenyatta University, Kenya

Dr. Joyce Gakobu - Lecturer, Kenyatta University, Kenya


Leadership styles vary across organisations and among different leaders. Organizations both in the public and private sectors highly seek and value leadership as a commodity as a way of handling changing environments in which they operate. This study aims to determine the effect of leadership on the performance of Safaricom Ltd. The key performance metrics measured in this study are market share, profitability, and the attitude and motivation of employees. The purpose of this study was to determine the effect of leadership styles on performance of telecommunication industry in Kenya. The study was guided by the following specific objectives: To establish the effect of transformational leadership style on performance of Safaricom Limited, to determine the effect of transactional leadership style on performance of Safaricom Limited and to establish the effect of laissez-faire leadership style on performance of Safaricom Limited.  This study used a descriptive research design targeting all employees at Safaricom headquarters office in Westlands, Nairobi. A sample size of 98 respondents was picked by using stratified random sampling method. The study made use of both primary and secondary data.The Primary data was obtained by using structured questionnaires and interview guide. The questionnaires were later on self-administered using assistants.The interview guide was used differently to obtain information from managers to verify the responses from the questionnaires. Secondary data was obtained by analysing the annual financial records for a period of 10 years (2004-2014). Statistical data collected was analysed using statistical package for social sciences software (SPSS) version 20.0. This was conducted mainly by use of descriptive and inferential statistics. Descriptive statistics included frequencies, percentages, mean and standard deviation. Inferential statistical techniques such as correlation and regression coefficients were involved in trying to determine existence of any causal relationship among the various leadership styles and performance. The data was then presented in form of tables, graphs and charts. Findings from the study proved that leadership style indeed had an influence on performance at Safaricom Limited. The complete statistical analysis from the data collected showed a clear image of the existing relationship and impact of Leadership styles on organization performance. Overall results showed that transformational and transactional leadership both have positive relationship with the organizational performance. However laissez-faire leadership style had a weak and positive relationship with performance. Relational analysis as expected proved that all transformational leadership behaviours positively relate with organizational performance. The study recommends that top management in business should try as much as possible to become better role models to their subordinates; inspire them by providing meaning and challenge to work; stimulate their efforts to become innovative & creative; and carefully pay attention to each individual’s need for positive gain and development.

Full Length Research (PDF Format)