Influence of Service Costs on Financial Sustainability of the Water Companies in North Rift Counties of Kenya
Keywords:Service costs, financial sustainability, water companies.
This study aimed at establishing the effect of service costs on the scheme types adopted by the water companies in the North Rift Counties of Kenya. The findings from this study would be of significance to various stakeholders. The study as constructed on: The New Economic Theory; Budget Theory; Modern Portfolio Theory and theory of Financial Control. This study adopted a constructivist paradigm with a survey research design as it assumes quantitative methodology. The target population consisted of all water companies in the North Rift Counties of Kenya with a registered pension scheme. This study utilized census sampling. The study used questionnaires as a tool for data collection. A pilot study was done to determine the reliability and validity of the study. Data was described using descriptive statistics such as mean and standard deviation, which gave meaning to describing the distribution of responses. Various factor analysis statistics were used to infer population characteristics from the study sample. Pearson’s correlation coefficient was used to establish relationships between variables. The study findings show that there is a significant relationship between service cost reforms and financial sustainability. Drawing on these findings, the study recommends that one of the strategies is that the Retirement Schemes should now strengthen their Service Cost Reforms to enable those overcome financial related challenges.
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