| dc.description.abstract | In Kenya, the drive to deregulate and liberalize the power generation market has led
to attempts at more precise economic definitions of what constitutes a natural
monopoly: taking cost as exogenous. KenGen is in direct competition with four
Independent Power Producers who between them produce about 18 percent of the
country’s electric power. The company utilises various sources to generate electricity
ranging from hydro, geothermal, thermal and wind.The objective of this study was to
determine the environmental challenges facing KenGen in the energy industry. This
study adopted a case study since the unit of analysis was based on one organization.
The research utilized primary data which was collected using in depth face to face
interviews with the relevant top management.
The study found out that the challenges brought about by the environmental changes
has brought about stiff competition, especially competition for resources like human
capital, funding from both the government and donors, the changes have resulted to
loss of goodwill with the public because of the spiraling cost of electricity as they are
not able to appreciate the challenges posed by the reduced water levels as a result of
prolonged draught. The study further concludes that the challenges on human resource
recruitment, training and development have affected the financial performance of the
company due to reduced revenues as a result of reduced water levels and increased
costs of operations in recruitment, training and development costs and there is
inefficient use of information sources and poor communication link between policy
planning and budgeting by discouraging communication between the different
stakeholders and reorientation of communication and training involving a wide range
of stakeholders working in partnership needs to continue on a long-term basis of
energy production in the company. The study recommends that the company should
conduct consumer awareness and education campaigns to enlighten them on the
activities carried out by KenGen, the challenges that KenGen faces in its operations
and in so doing enlighten the consumers on the similarities and differences between
KenGen, KPLC, GDC and other players in the energy industry. The study also
recommends that the company should also reach out to the relevant bodies such as
government bodies and donors to emphasize on the relevance and the importance of
supporting KenGen through adequate funding. | en |
