Abstract:
Sustainability of the water and sanitation companies (WASCO) is a global problem.
Sustainability is complex balance between water access and quality for the country to
achieve the SDG Goal 6. The problem is more pronounced on water access compared
to water quality. A World Health Organisation report 2022 indicates that worldwide,
1.4 million people die annually from diseases related to poor water access, sanitation
and hygiene. Kenya has an estimated population of 53million people. Statistics indicate
that approximately 53% and another 77% have no access to safe water and improved
sanitation respectively hence making this a national problem. The water and sanitation
sector is one of the significant sectors in Kenya contributing approximately 5.78% of
national employment and further supports among others agriculture, forestry and
fisheries. Water access is the major single most contributor to food insecurity in Kenya.
By the year 2022, Kenya ranked bottom 30 among 121 countries in terms of food
security. Economic theory point that effective investing practices contributes to
sustainability of an entity. Guided by the stakeholder theory this study examined the
influence of investing practices on sustainability of WASCO in Kenya. The study
adopted conservatism research philosophy and a descriptive design. From a population
of 91 WASCOs regulated by WASREB a sample size of 46 companies was purposefully
selected. Primary data was collected using a questionnaire while secondary data
collected from the annual WASREB reports. A pilot study was carried out to test the
reliability and validity of the data collection instrument. Cronbach’s Alpha coefficient
37
was used to assess reliability of the instrument and Keiser-Meyer-Olkin (KMO) and
Bartlett’s Chi-Square test of Sphericity in the case of validity. Tests of regression
assumptions of linearity, autocorrelation, homoscedasticity and normal distribution
were carried out using; Pearson’s correlation coefficient, Durbin-Watson (dstatistic),
P-P
plot
and
Q-Q
plot
respectively.
Bivariate
linear
model
was
utilized
for
inferential
analysis. The findings showed that investing practices explained
approximately 75.2% of WASCO sustainability. ANOVA’s F-statistics of 133.485
and associated p=0.000 indicating that investing practices has a statistically significant
influence on sustainability of WASCO. The results for beta coefficient of 29.108 and
p=0.000 implies that a unit change in investing practices would result to a 29.108
units change in sustainability measures. The study recommends the focused
deployment and deepening of strategic investing practices since they have a strong
bearing on sustainability of these firms.