Influence of last mile infrastructure maintenance cost on the financial performance of Kenya Power and Lighting Company, Kenya

Abstract

The study sought to determine the influence of last-mile power connectivity infrastructure maintenance costs on the financial performance of Kenya Power and Lighting Company. The Last Mile Connectivity Program (LMCP) aims to support the government’s initiative of ensuring increased electricity access to Kenyans. However, the extent to which the last mile connectivity program has influenced the financial performance of Kenya Power Limited Company has not been explored. The study was anchored on economies of scale theory. The target population was employees directly involved in the last mile projects, who were 242. The study employed a census where all the employees were taken as the study respondents. Structured questionnaires with close-ended questions were used for data collection. Data was analysed using inferential and descriptive statistics. The study established that maintenance cost had a positive significant relationship with the Kenya Power Limited Company's financial performance.  Regression analysis demonstrated that maintenance costs had a significant influence in determining the KPLC's financial performance. It was concluded that maintenance costs have a significant influence on the financial performance of KPLC. The study recommended that Kenya Power undertake a financial sustainability evaluation of its projects in order to ensure that they are able to generate the projected revenues from its projects.