STRATEGIC OUTSOURCING AND DISTRIBUTION STRATEGY ON PERFORMANCE OF AGRO-CHEMICAL AND FOOD COMPANY LIMITED IN KISUMU COUNTY, KENYA

Abstract: Agro-Chemical and Food Company Limited has been recognized as the major entity in the food manufacturing industry, supplying essential chemicals and food manufacturiy solutions to other industries and consumers throughout Kenya. Nevertheless, recent statistics indicate that the company’s revenue has experienced a 15% decrease compared to the previous years due to low distribution coverage, cheap import, high cost of production, high cost of repair and maintenance, high taxation and scarcity of molasses. Therefore, this study aimed at assessing how strategic outsourcing and distribution strategy had influenced the performance of agro-chemical and food company limited in Kisumu County, Kenya. The balance scorecard model and the agency theory were used to guide the study. The Agro-Chemicals and Food Company Limited based in Kisumu County, Kenya was targeted. The respondents were 340 employees obtained from 9 departments of the company. The departments formed the study strata whereby stratified sampling technique was applied. The sampled respondents were chosen through simple random sampling approach. A questionnaire which was semi-structured was used in collecting data. Piloting test was carried out in Agricultural Development Corporation with 18 respondents involved. Content and construct test was used in assessing validity. A Cronbach’s Alpha test was applied in the evaluation of reliability and a 0.721 coefficient was achieved which confirmed the strong reliability of the tool. The qualitative data was assessed using content assessment method with the responses given presented through narration. Descriptive analytic techniques, including percentages, means, and standard deviations, were used to evaluate quantitative data. The determination of how variables related was achieved through inferential analysis techniques which comprised of correlation and regression analyses. The study found that the strategic outsourcing (β=0.852; p=0.003) and distribution strategy (β=0.224; p=0.004) had a positive significant influence on the performance of ACFC Limited in Kisumu County, Kenya. The study concludes that the ACFC company had an effective implementation of strategic outsourcing strategy which had improved efficiency within its operations and overall performance. The company had a proper designed distribution strategy that had resulted to improved sales and customer satisfaction. The recommendations made were that; the company should concentrate on its core competencies through outsourcing non-core activities for improved productivity and innovation. The company should consider local partnerships to enhance its distribution network to leverage existing trust and credibility, facilitate smoother product access for consumers. Keywords: Strategic Outsourcing, Distribution Strategy, Organizational performance. Title: STRATEGIC OUTSOURCING AND DISTRIBUTION STRATEGY ON PERFORMANCE OF AGRO-CHEMICAL AND FOOD COMPANY LIMITED IN KISUMU COUNTY, KENYA Author: Philip Odoyo Odindo, Dr. Felistus Makhamara International Journal of Social Science and Humanities Research ISSN 2348-3156 (Print), ISSN 2348-3164 (online) Vol. 13, Issue 4, October 2025 - December 2025 Page No: 399-411 Research Publish Journals Website: www.researchpublish.com Published Date: 15-November-2025 DOI: https://doi.org/10.5281/zenodo.17616070 Paper Download Link (Source) https://www.researchpublish.com/papers/strategic-outsourcing-and-distribution-strategy-on-performance-of-agro-chemical-and-food-company-limited-in-kisumu-county-kenya