THE EFFECT OF TURNAROUND STRATEGY ON THE PERFORMANCE OF KENYA POWER LIGHTING COMPANY PLC

Abstract: This study investigated the effect of a turnaround strategy on the performance of Kenya Power and Lighting Company (KPLC) between 2018 and 2022. Operating in a challenging energy sector, KPLC faced multifaceted challenges, including operational inefficiencies, limited management autonomy, bureaucracy, and financial instability, which led to a decline in performance. The study aimed to identify the specific turnaround strategies adopted by KPLC during the period of decline and to assess their correlation with the observed changes in performance indicators over the five-year period. Guided by the Stage Theory of Successful Turnaround and Stakeholder Theory, the research adopted a qualitative case study design, collecting data through interviews with senior managers at the company’s headquarters. Analysis revealed that KPLC implemented strategies focused on cost control, revenue enhancement, organizational restructuring, operational efficiency, and customer engagement. The study found that although the turnaround initiatives of KPLC successfully improved their short-term financial performance, external factors such as the delay in approval of a cost-reflective tariff, a subsequent 15% tariff reduction, the direct and indirect impacts of COVID-19 on the broader economy and the depreciation of the Kenya Shilling against major foreign currencies, undermined sustainable, long-term recovery. Consequently, the company achieved only 20% of its targeted performance gains, reflecting a negative variance of 80% from the set targets. The study concluded that the turnaround strategy fell short of comprehensively addressing the complex challenges contributing to KPLC’s performance decline. It recommends the development of an agile, innovation-driven strategy that incorporates lessons learned and mitigates foreign exchange risks, particularly through renegotiating power purchase agreements to align currency exposure with revenue streams. Keywords: Kenya Power and Lighting Company(kplc.), Turnaround Strategy, Stakeholder Theory and Performance. Title: THE EFFECT OF TURNAROUND STRATEGY ON THE PERFORMANCE OF KENYA POWER LIGHTING COMPANY PLC Author: Ochieng’ Evans Otieno, Dr. Ngong’s Aketch International Journal of Management and Commerce Innovations ISSN 2348-7585 (Online) Vol. 13, Issue 2, October 2025 - March 2026 Page No: 464-479 Research Publish Journals Website: www.researchpublish.com Published Date: 23-February-2026 DOI: https://doi.org/10.5281/zenodo.18740650 Paper Download Link (Source) https://www.researchpublish.com/papers/the-effect-of-turnaround-strategy-on-the-performance-of-kenya-power-lighting-company-plc