Effects of Governance Systems on Organizational Performance of Water Service Companies in Kenya

Abstract

Good Governance is a process whereby public and private institutions manage resources to promote development, human rights, justice, peace, accountability, responsiveness, inclusiveness, democracy, and adherence to the rule of law. However, there are many challenges in the governance systems, including politics, corruption, lack of transparency, and lack of accountability. This research focused on the governance systems of water sector companies in Kenya from 2002 to 2021. The purpose of this study was to determine the effects of governance systems on the organizational performance of water service companies in Kenya. The study was limited to 79 registered Water and Sanitation companies in Kenya and 47 Senior Executives in charge of water and sanitation in every county in Kenya, and the CEOs/Senior Executives of the two water regulatory bodies, Water Services Regulatory Board (WASREB) and Water Resources Management Authority (WRMA). The following theories were used; The Systems Theory, The Good Governance Theory and The Resource-Based View Theory. To determine the sample size, simple random sampling techniques were used. Self-administered questionnaires and interview guide questions were used to collect primary data.  A sample size of 281 respondents was used. The data was analysed using the Statistical Package for the Social Sciences (SPSS). Correlation and linear regression techniques were used to test the research hypotheses. The study found that water governance framework and performance had a statistically significant linear relationship (r= 0.524, p<.05). The study revealed that water framework variables account for 52.4% of the variability in the performance of water service companies in Kenya. The findings from the regression model indicated that the governance framework significantly influences the organisational performance of water service companies (β = 0.311, p<0.05).  The results of this study may be used by water service companies and County Governments in the formulation and implementation of strategies regarding water governance.