Influence of Innovation Leakages on Performance of Nairobi Water & Sewerage Company in Nairobi County Kenya

The NCWSC was highly committed to ensuring effective water management. The company had achieved 80% of its strategic plan. However, it faced significant challenges between the years 2014/15 and 2018/19. In 2014/15, NCWSC produced 201.8 million cubic meters of water, while the amount sold was 124.7 million cubic meters. By 2018/19, both production and sales had declined to 180.1 million cubic meters and 114.5 million cubic meters, respectively. Additionally, Non-Revenue Water (NRW) losses due to physical leaks or inefficiencies stood at 36.4% in 2018/19, exceeding the sector's recommended maximum of 25%. Thus, the study examined the influence of innovation leakages on performance of Nairobi Water & Sewerage Company in Nairobi County Kenya. An extensive theoretical framework was developed to provide a solid theoretical foundation for the study, based on resource-based view theory. The study adopted a descriptive research design, focusing on 94 participants within NCWSC's Nairobi operations. Data was collected using questionnaires. The variables were analyzed using descriptive statistics and linear regressions. The results were presented in tabular format. The response rate was 93.6%, with 88 out of 94 questionnaires completed. The study found that innovation in water leak detection significantly influences Nairobi Water & Sewerage Company's performance, with regression analysis revealing a strong positive correlation between leak detection technologies and organizational performance, demonstrating that advanced technological interventions in leak management substantially contribute to operational effectiveness. The study concludes that innovation in water leak detection is a strategic imperative that transforms water management by enabling rapid leak identification, reducing water losses, and improving resource allocation. The study recommends that NWSC should invest in cutting-edge smart water technologies like advanced sensors, AI-driven monitoring, and Internet of Things-based leak detection systems. The organization should prioritize strategic infrastructure upgrades and regular maintenance plans to optimize water distribution and reduce non-revenue water losses. By embracing these technological innovations, NWSC can transform its operational model and become a forward-thinking, customer-centric utility service provider. Keywords: Innovation Leakages, Performance, Nairobi Water & Sewerage Company, Nairobi County Kenya