Thesis:

Analysis of strategic management practices on performance of Murang’a water and sewerage company, Kenya

Public water and sewerage companies are crucial to promoting public health and socioeconomic development in Kenya. However, they continue to face persistent challenges such as outdated infrastructure, inadequate funding, and inefficient management practices, which hinder their performance. This study examined the influence of strategic management practices on the performance of Murang’a Water and Sewerage Company, focusing on three key variables: strategic planning, strategic alliances, and technology adoption, with organizational performance as the dependent variable. A descriptive research design was employed, and data were collected using structured questionnaires administered to both management and staff, enabling the gathering of both quantitative and qualitative insights. The findings revealed statistically significant positive relationships between all the strategic management practices and company performance. Strategic planning showed a moderate positive correlation (Spearman’s rho = 0.692, p < 0.001), indicating that clearly defined objectives and effective resource allocation help address operational challenges. Strategic alliances had a stronger positive correlation (Spearman’s rho = 0.729, p < 0.001), emphasizing the role of partnerships in enhancing innovation, efficiency, and access to shared resources. Technology adoption also demonstrated a positive correlation with performance (Spearman’s rho = 0.669, p < 0.001), underlining its contribution to improved service delivery and adaptability in operations. Regression analysis confirmed that the combined effect of the three strategic practices explained 53.2% of the variance in performance (R² = 0.532), with strategic alliances emerging as the most influential predictor. ANOVA results supported the significance of all the independent variables (p < 0.001), affirming the strength and reliability of the model. The study concludes that strategic management practices significantly enhance the performance of public water utilities. It recommends that public entities prioritize strategic partnerships and invest in technological innovations to address existing infrastructural and financial constraints. Furthermore, effective strategic planning should be institutionalized to support sustainable growth and resilience. These findings offer practical insights for policymakers and utility managers aiming to improve efficiency and long-term sustainability in Kenya’s public water sector.