Relationship between Power Supply Interruptions and Financial Performance of Manufacturing Companies in Machakos County

  • Nyangwaria Martha Cheruto Management University of Africa
  • P. Munene Management University of Africa

Abstract

The importance of power supply to economic development of any nation cannot be overemphasized. Availability and access to reliable electricity supply has a rippling effect on productivity of manufacturing firms. Unreliable power leads to disruptions in production, loss of perishable goods, damage to sensitive equipment and loss of orders. The study examined the relationship between power supply interruptions and manufacturing companies’ financial performance in Machakos County. The study employed descriptive research design. The population for this study constituted the 69 manufacturing firms in Machakos County. The study found that scheduled maintenance and financial performance are positively and significantly related. Equipment vandalism and financial performance are negatively and significantly related. It was also established that response time and financial performance are positively and significantly related. Repair costs and financial performance are negatively and significantly related. In conclusion, electricity is necessary for the operation of any manufacturing company and any interference with electricity supply makes manufacturing companies run into serious losses. The financial performance of manufacturing companies in Machakos County are always affected by; scheduled maintenance by power utility, vandalism of electrical equipment, the response time by power utility staff to restore power and the cost the companies incur in terms of paying losses as a result of damage caused by power outage. Due to the important nature of electricity in the manufacturing industry, there is need to create clear policy framework protecting manufacturing companies from regular power outage which has  an adverse effect on the operations of the manufacturing companies in the country. Scheduled maintenance by should be done in such a way that it does not interfere with the normal operations of manufacturing companies. The government and the utility company should ensure that there are vigilant groups are formed to  safe guard power equipment and power lines against vandalism which has become a major setback to the utility company in its attempt to maintain constant power supply.

Keywords: scheduled maintenance, equipment vandalism, response time, interruption repairs, financial performance, manufacturing companies, Machakos County

Author Biographies

Nyangwaria Martha Cheruto, Management University of Africa

Postgraduate Student, Management University of Africa

P. Munene, Management University of Africa

Senior Lecturer, Management University of Africa

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Published
2019-09-12
How to Cite
Cheruto, N., & Munene, P. (2019). Relationship between Power Supply Interruptions and Financial Performance of Manufacturing Companies in Machakos County. Journal of Human Resource & Leadership, 3(3), 1 - 26. Retrieved from https://stratfordjournals.org/journals/index.php/journal-of-human-resource/article/view/336
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Articles