Factors influencing customer satisfaction with service provision by Kenya power company: a case of Nairobi county, Kenya

Abstract

Kenya Power is a limited liability company that is the sole distributor of electricity in Kenya. However, its image in the public is tainted with bad customer reviews because of constant blackouts, death and destruction of property due to electrical faults, bad customer relations and delays in provision of service. One of the most important marketing strategies in the 21st century is provision of customer satisfaction. However, it is evident that customers are not satisfied with the services of Kenya Power. The purpose of this study was to establish the factors affecting customer satisfaction with Kenya Power and the objectives were: to establish the influence of communication techniques on customer satisfaction with Kenya Power Company in Nairobi County, to investigate the influence of reliability of power supply on customer satisfaction with Kenya Power Company in Nairobi County, to establish the influence of cost of electricity on customer satisfaction with Kenya Power Company in Nairobi County and to establish the influence of innovation of new products on customer satisfaction with Kenya Power Company in Nairobi County. The research design used was descriptive research method. The instruments of data collection were questionnaires. Reliability was achieved by the use of the split-half method which involves splitting the test in two and comparing the results of each half. The results were consistent therefore the test is considered reliable. Construct validity was ensured by engaging a panel of experts - project supervisor and department lecturers who were familiar with the topic to examine the items and decide what specific variables it is intended to measure. The research was done in Nairobi County which has a total of 1.35Million Kenya Power Company customers. The sampling design employed was simple stratified sampling. Stratified sampling provides the researcher a way to achieve even greater representativeness in the sample of the population. This was accomplished by selecting individuals at random from the subgroup in proportion to the actual size of the group in the total population. The sample size obtained is a total number of 384 respondents. The procedure of data collection used was handing out questionnaires to the selected participants and giving them three days to fill the questionnaires accurately and truthfully and then collecting them from the participants. This was done over a period of two weeks. The data was then analyzed over a period of one month by first checking for errors, then tabulating results, calculating percentages and then reporting the findings descriptively. The results were tabulated with the help of the Statistical Package for Social Sciences (SPSS) that has data handling and statistical analysis capability and generates descriptive statistics such as frequency, percentages, means and standard deviations. The findings of the research were that the respondents were not satisfied with the services provided by Kenya Power Company. The customers were not aware of some of its innovations because the communication techniques used were not effective. The customers also complained of lack of reliability of power supply and high cost of electricity. The recommendation made by the researcher was that the company needs to use more effective communication techniques such as TV to communicate new innovations and power interruptions. Another recommendation was that the company should device ways to switch customers automatically to an alternative power line in case of power interruption. In conclusion, the study found out that communication techniques, reliability of electricity supply, cost of electricity and innovation of new products greatly affects customer satisfaction with service provision by Kenya Power Company.