Strategic Outsourcing of Revenue Collection and Service Delivery in the Water Service Provison: A Case of Kericho and Sanitation Company (Kewasco) In Kenya.

Abstract

This article argues that the outsourcing of revenue collection services improves service delivery in Kericho Water and Sanitation Company (KEWASCO). The water service provision sector, like any other public service entity, is under a lot of public pressure and scrutiny to continually improve its services. Under the regulatory framework of Water Service Regulatory Board (WASREB), water service providers in Kenya have been provided with the key performance indicators (KPIs) for service provision. Among the KPIs provided by the regulator is the improvement of revenue collection efficiency, reduction of water losses as well as the optimization of staff per thousand connections/customers. This study collected data from employees as well as water consumers of KEWASCO. Samples were drawn from KEWASCO’s service area through clustering, random as well as purposive sampling techniques. The findings of the study demonstrated that the outsourcing of revenue collection services made payment of water and sewerage services easier and ultimately improved the revenue collection efficiency of the company. Additionally, outsourcing of revenue collection services freed the company employees to carry out other core functions of the company hence reduction of overall cost of production in the organization. Finally, the study recommends, among other things, that KEWASCO should carry out proper sensitization, targeting the elderly customers, so that digital money transfers may be more acceptable. This will increase revenue in the company.