Relationship Between Water Service Performance Indicators and Revenue Generated at Kisumu Water and Sewerage Company Limited, Kenya

Abstract

The provision of adequate and reliable water supply in Kenya is a challenge for most water utilities especially public service providers which are unable to generate sufficient revenue for sustainability. It is estimated that In Kenya access to water is currently at 59% and sanitation 32%. This situation is associated to inability by water providers to meet the set water service performance indicators Kisumu water Sewerage Company limited (Kiwasco) included. It is clear from available literature that studies on the factors influencing revenue generation of water utilities have generated varied results ranging from those who support a low and significant relationship to those supporting moderate and insignificant relationship. There is no common agreement on how water service performance indicators relate to total revenue generated by water utility. This lack of common agreement may be due to researchers' use of correlation analysis as method of establishing relationships between variables. The aim was to establish the relationship between water service performance indicators and total revenue generated by Kiwasco by use of both correlation and regression statistics. The specific objectives were to establish relationships between collection efficiency, non revenue water, staff productivity index and coverage ratio on total revenue generated by Kisumu Water and Sewerage Company limited for 2008/9-2013/14 financial year on quarterly bases. This study was guided by Theory of Constraints. The research adopted a case study design. The collected data were analyzed through correlational and regression statistics. The study found out that there was significant relationship between Collection efficiency and total revenue generated at kiwasco ltd Pi =.006 (p=.034), Non Revenue Water and total revenue generated at kiwasco Itd P2 =-.110 (p=.015), staff productivity index p3 =-.073 (p=.055). and coverage ratio and total revenue generated at kiwasco ltd P4 =.799 (p;=.OOO)and total revenue generated, meaning reduction in staff productivity index and Non Revenue Water increases revenue generated while increase in collection efficiency and coverage ratio increases revenue generated. The study concluded that water service performance indicators had significant relationship to revenue generation of Kiwasco, except staff productivity index which showed a strong negative but insignificant relationship. The study recommends that Kiwasco makes effort to reduce Staff Productivity Index and Non revenue water, while increasing collection efficiency and coverage ratio in order to generate more revenue. For other researchers, the study has exposed areas for further research which will be useful for expanding knowledge in the Kenya water sector