Financial innovations and performance in the Kenyan water Services companies

Abstract

The increasing changing business environment, which is characterized by fragmented markets, policy changes, technological changes and growing dependence on non price competition is forcing service sectors to be innovative to meet customers demand and expectations. This study sought to evaluate the relationship between financial innovation and financial performance of water companies in Kenya. This study took employed use of descriptive research design and targeted 12 WSPs in Lake Victoria South Water Services Board. The data collected was edited for accuracy, uniformity, consistency and completeness and arranged to enable coding and tabulation before final analysis. Qualitative and quantitative analysis techniques were used. Qualitative data will be analyzed by categorizing and grouping thematic contents through content analysis to address the research questions. Quantitative analysis will be analyzed through descriptive statistics such as measure of central tendency to generate relevant percentages, frequency counts, mode, and median and mean where applicable. The study concluded that the water services companies which had adopted financial innovation were more sustainable compared to companies which use manual system of operation. The study also revealed that despite water sector reforms which was aimed at making Kenya water services providers effective and efficient in their service delivery, financial innovation is an important aspect basically for the effective service delivery. It was clear that adoption of financial innovation resulted in strong financial results of the water services companies. The study therefore the suggests that further research should be conducted in all the water companies in east Africa to investigate into the effects of financial innovation strategies on other aspects of the water companies in achieving competitive edge and providing better and timely service to their consumers iii