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Ishmael Maina Makanga - Masters of Business Administration (Project Management), Kenyatta University, Kenya

Dr. Lucy Kavindah - Department of Business Administration, Kenyatta University, Kenya


There is increased number of sugar companies that have failed despite advance increase in strategic management best practice. Several studies on organisational performance have revealed that in Kenya, performance is nonlinear despite numerous initiatives. A few studies have tried to account for the mixed performance especially in the context of cost cutting approach in understanding the effect of adoption of green energy on performance. Successful green practices helps firms to achieve greater efficiency, establish and strengthen their core competencies, enhance their green image, all of these may eventually combine to contribute to firm profitability. Environmental sustainability in any given production is very important. The low adoption of green energy has led to high charges on electric units especially during low rainy seasons, and high prices of petroleum and electricity in operations of the company which accounts for poor performance that has necessitated closure of many sugar companies. The study sought to bridge the gap by establishing the effect of green energy adoption on the performance of Butali Sugar Company in Kakamega County, Kenya. The specific objectives were to establish the effect of pollution reduction, cost of production, organizational policy and organizational capacity on the performance of Butali Sugar Company in Kakamega County, Kenya. The study was anchored on three theories which include green economic theory, resourced based view theory and the Innovation Diffusion theory. The study used descriptive research design. The target population was 204 respondents. The sample size was 134 which was developed using Yamane’s formula. A semi-structured questionnaire was used. After data collection, data will be edited, referenced coded to facilitate statistical analysis. Data collected was analyzed using both qualitative and quantitative methods. Data was analyzed using Statistical Package for Social Sciences (SPSS version 21). The data was analyzed using both descriptive and inferential statistics and presented using tables, charts, frequencies, percentages and graphs. The study established that green energy adoption had a positive and significant effect on the performance of Butali Sugar Company. It was concluded that the firm had significantly reduced emissions to the atmosphere by adopting green energy, enhanced use of renewable energy, improved environmental conservation, recycles wastes, embraces environmental friendly waste disposal and collaborates with other firms on waste management. It was further concluded that green energy adoption had significantly reduced the cost of production in the firm despite their being inadequate finances for the project, cost of transportation being slightly higher and the price of license to produce power being moderately higher. The study concluded that the firm has a clear policy guideline on green energy adoption, complies with government policy and regulations governing the project. The study recommends that the management of the Butali Sugar Company Limited should ensure that the production of green energy is maximized to economically viable levels to improve firm returns. The firm also needs to enhance human resource, technological and infrastructure capacity to facilitate the green energy adoption process and effectiveness.

Full Length Research (PDF Format)