STRATEGIC ALIGNMENT, STAKEHOLDER ENGAGEMENT AND ORGANISATIONAL PERFORMANCE OF THE TEA INDUSTRY IN KENYA: A CASE OF KABIANGA TEA FACTORY

Kenya's tea industry, a leading foreign exchange earner, faces climate variability, certification demands from international buyers and volatile auction prices. Corporate social responsibility (CSR) is often proposed as a strategic response, yet evidence on how it is managed in farmer-owned factories under the Kenya Tea Development Agency (KTDA) remains scarce. This study examined the effect of strategic alignment and stakeholder engagement, as dimensions of CSR practice, on the organisational performance of Kabianga Tea Factory in Kericho County, Kenya. The study was anchored on Stakeholder Theory and supported by the Natural Resource-Based View. A descriptive case study design was adopted. From a target population of 805 factory managers, operational staff, farmer-members, community representatives and KTDA oversight personnel, a sample of 160 respondents was drawn through stratified random and purposive sampling. Data were collected using a pilot-tested structured questionnaire, which yielded 146 usable responses (91.25 per cent), and were analysed using descriptive statistics, Pearson correlation and linear regression. Both practices were rated favourably, with strategic alignment scoring a mean of 3.98 and stakeholder engagement 3.90, while organisational performance scored 3.76. Strategic alignment (r = 0.831) and stakeholder engagement (r = 0.819) had strong, positive and significant relationships with performance, and individually explained 69.1 and 67.1 per cent of its variation respectively (p < 0.001). Both remained significant predictors in the overall regression model, with stakeholder engagement (β = 0.324) and strategic alignment (β = 0.301) contributing distinctly to performance (p < 0.001). The study concludes that CSR improves performance when it is embedded in strategy and built on genuine, two-way relationships with stakeholders. It recommends that the factory write CSR objectives into its strategic plan and mission, tie CSR targets to board-reviewed performance indicators, and formalise grievance-resolution mechanisms for farmers, workers and communities.