Challenges Affecting Implementation of Corporate Strategies in the Electricity Sector in Kenya (A Case of Kenya Electricity Generating Company Limited)
Omuoso, Kepha Otieno
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Demand for electricity in Kenya is currently growing at a rate higher than the growth in supply. KenGen, as a major player in the electricity sector developed a strategic plan (2008-2012) which if implemented successfully would stabilize the equation for electricity supply and demand in the country, and increase its installed capacity from 912MW to 1510MW by 2012. Implementation of this strategic plan has however dwindled, with most projects running late or stalled. By the end of 2012, KenGen missed its planned projected installed capacity figure by nearly 50%. The objective of the study was to determine the challenges affecting implementation of corporate strategies at KenGen. The researcher determined to what extent organization culture, resource management, corporate social responsibility and leadership affect the implementation of corporate strategy at Kengen. The study was carried out in the 5 Ken Gen operation areas in Kenya. The target population was 22 managers and 96 chief officers across the organization. A sample size of 10% was picked using random sampling from the lot of chief officers, and another 10% was picked from the lot of managers. Questionnaires were used to collect data and analysis was done using descriptive statistics. The outcome of study was to help organizations in the electricity sector in Kenya to evaluate various challenges that affect implementation of corporate strategies. The government is expected to use the findings to review policies governing institutions in the electricity sector in order to give them the support and flexibility required to effectively compete in the liberalized sector. The study found out that half (50%) of the respondents viewed KenGen‟s corporate strategy (Horizon 1-500MW by 2013) as Essential to business growth and 50 % of the respondents viewed KenGen‟s corporate strategy (Horizon 1- 500MW by 2013) as Critical to organization survival. The study also found that KenGen had good leadership and used its resources well. This had helped the organization to manage and streamline the business operations effectively. Organization culture and corporate social responsibility activities were found to be very critical to success in implementation of corporate strategies at Kengen.