Response strategies to challenges of devolved governance in the renewable energy sector in Kenya

Abstract

Businesses are currently operating in a highly dynamic environment because of increased globalization and internationalization. In order to align themselves with the changes in the operating environment, it is important that they re-strategize.The objectives of the study were to determine the challenges of devolved governance in the renewable energy sector in Kenya and to establish the response strategies to the challenges of devolved governance in the renewable energy sector in Kenya. This study adopted a cross-sectional survey design. The population of the study comprised all 36 renewable energy sector firms in Kenya. This study included all the firms in the study hence a census. This study used primary data collected using a questionnaire. The study interviewed business development officers in the renewable energy firms because of their involvement in business development issues in their respective companies. The questionnaires collected from the field were inspected for completeness and consistence then entered into Statistical Package for Social Sciences for processing. The Likert scale type questions were analyzed using mean scores and standard deviations. The open-ended questions were analyzed qualitatively using content analysis and the results presented under identified themes as per the objectives of the study. The study established that the respondents were neutral on the county governments competing for prosperity. The study established that there was weak institutional capacity at the devolved government level thus devolved governance empowering the grassroots citizenry and decentralized decision making was challenging. This study therefore recommends that government can provide a smooth transition from a central government to county government to improve decentralized governance structures. The study further concluded that the counties did not have adequate financial resources to improve organizational operations. This study therefore recommends that the stakeholders in the renewable energy industry as well as the county management needs to come up with strategies that would enable effective management of the available financial resources as well as strategies through which they can generate additional funds for the management of the renewable energy sector. Further the study recommends holding community education on the advantages of renewable energy, offering free transportation for customers from the counties and establishing branches at the county/sub-county level to improve decentralize government structures.