STRATEGY IMPLEMENTATION AND PERFORMANCE OF STATE PARASTATALS IN THE ENERGY SECTOR IN KENYA.
Francis Musyimi Muia
Dr. Janesther Karugu
Lecture: Kenyatta University
CITATION:Muia, F., M. & Karugu, J. (2017). Strategy implementation and performance of state parastatals in the energy sector in Kenya. European Journal of Business Management. Vol. 5 (4) pp 18 – 39.
In Kenya the state parastatals fall under various parent ministries and established through Acts of parliament and under provisions of State parastatals Act (cap 446) laws of Kenya.. A number of policy issues and challenges afflict SPs in Kenya which includes inadequate performance management framework that effectively links performance of SPs to national development goals and fails to adequately link individual performance to institutional performance. The dismal performance in SPs has resulted to public private partnerships, mergers, restructuring and branding, and even trimming the number of SPs from 262 to 187. The decline in performance of State parastatals (SPs) has been attributed to issues such as strategy implementation, inadequate policies, inadequate intra-organizational knowledge transfer techniques, organizational culture and lack of adequate directions in the management. The study undertook five selected state parastatals in the energy sector in Nairobi ministry of energy and petroleum which included Kenya Pipeline Company, Kenya petroleum Refineries Company, Kenya power, Kenya electricity generating company, and National Oil Company. The target population comprised of 320 staff in different managerial levels working at five selected state parastatals in the energy sector in Nairobi ministry of energy and petroleum. The sample size of the study was drawn from the 160 management staff. The study draw emphasis in gathering data that helped to establish how strategy implementation affect performance of state parastatals in the energy sector in Kenya. The study specifically demonstrated how staff competency, Organisation structure, leadership and communication impacts on performance of state parastatals in the energy sector in Kenya. This research problem was studied through the use of a descriptive research design. In this study the collected data was edited and coded into a statistical package (Statistical Package for Social Sciences (SPSS) version 20) for analysis. Both descriptive and inferential statistics was used to analyze quantitative data. In descriptive statistics, the study used frequency, mean, standard deviation and percentages. Findings of the study concluded that the independent variables i.e. management competency, organization structure, leadership and communication are factors that affect performance of state parastatals in the energy sector in Kenya. The study indicates that P value to be = 0.000 which is less than 5%. The study recommends that the state parastatals management should invest in research and development in order to develop new strategies that are competitive in the target market. The state parastatalsshould venture into implementation of strategies that ensures performance of state parastatals in the energy sector.
Keywords: Strategy; implementation; performance; state parastatals; energy sector.