Smart Water Strategies and Organizational Performance: A Case of Nairobi Water and Sewerage Company in Nairobi City County, Kenya
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Date
2025-08
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Kenyatta University
Abstract
The NCWSC was highly committed to ensuring effective water management. The company had achieved 80% of its strategic plan. However, it faced significant challenges between the years 2014/15 and 2018/19. In 2014/15, NCWSC produced 201.8 million cubic meters of water, while the amount sold was 124.7 million cubic meters. By 2018/19, both production and sales had declined to 180.1 million cubic meters and 114.5 million cubic meters, respectively. These declines were primarily attributed to climate change and erratic rainfall, partly due to the droughts experienced in 2016 and 2017. Additionally, Non-Revenue Water (NRW) losses due to physical leaks or inefficiencies stood at 36.4% in 2018/19, exceeding the sector's recommended maximum of 25%. This study aimed to assess how smart water strategies impacted the Nairobi Water & Sewerage Company’s performance in Nairobi City County, Kenya. In this context, the study specifically aimed to; examine the influence of storage capacity location on the performance of Nairobi Water & Sewerage Company in Nairobi County Kenya; establish the influence of customer service effective water billing tokens on the performance of Nairobi Water & Sewerage Company in Nairobi County Kenya; explore the influence of innovation leakages on the performance of Nairobi Water & Sewerage Company in Nairobi County Kenya. The study was anchored on three key theories; resource-based view theory, structural contingency theory, and balanced scorecard concept. A descriptive research design was adopted. The target population was 94 participants within NCWSC's Nairobi operations and all the 94 respondents were selected as the sample using a census sampling technique. Data was collected using questionnaires. A pilot test was first conducted with nine respondents from NCWSC who were not part of the actual study to minimize bias. In order to calculate the coefficient that describes the correlation of an instrument, Cronbach's alpha test was applied. A tool's correlation coefficient must exceed 0.7 if it is to be considered reliable and as such, the study aimed to obtain a correlation coefficient of 0.8. The variables were analyzed using descriptive statistics - mean and standard deviation - and multiple linear regressions. The results were presented in tabular and graphical formats. The study achieved a response rate based on 94 questionnaires administered to managers and staff at Nairobi Water and Sewerage Company. The adjusted R-squared value indicated that organizational performance variation was influenced by innovation in water leak detection, customer service in water billing tokens, and storage capacity location. Regression analysis showed significant positive contributions from these factors, confirming their strong influence on organizational performance. The study examined the impact of smart water strategies on Nairobi Water & Sewerage Company’s (NWSC) performance. Findings revealed that digital metering, automated distribution, and data-driven decisions enhance efficiency, revenue collection, and service delivery. Strategic storage facility placement minimizes supply disruptions, while smart billing improves transparency and payments. Innovations in leak detection reduce water losses and costs. The study recommends adopting advanced technologies, optimizing storage locations, enhancing billing systems, and investing in modern leak detection. Future research should explore AI, IoT, and policy impacts
Description
A Research Project Submitted to the School of Business, Economics and Tourism in Partial Fulfillment of the Requirements for the Award of the Degree of Master of Business Administration (Strategic Management) of Kenyatta University, August 2025
Supervisor:
1.Janesther Karugu