INVENTORY COST MANAGEMENT PRACTICE AND FINANCIAL PERFORMANCE OF GARISSA WATER AND SEWERAGE COMPANY IN GARISSA COUNTY, KENYA

This study purposed to establish the extent to which adoption of inventory cost management practice affected the financial performance of Garissa Water and Sewerage Company. Theory anchoring the study comprised of Working Capital Management Theory. The study employed a descriptive correlational research design. The population of the study comprised of 85 employees from Garissa Water and Sewerage Company from accounting, administration, and operations departments. The study employed a census approach. A close-ended questionnaire structured in a five-point liker scale was used to collect data for the study. Both descriptive and inferential statistics were used to analyze the collected data. The descriptive statistics comprised of means and standard deviation while the inferential statistics comprised of both regression and correlation analysis. The statistics were generated through Statistical Package for Social Science version 25. Figures and tables were used to present the analysis results. Prior data collection, a pilot study was conducted to assess the reliability and validity of the questionnaire. The study established that inventory cost management practice positively and significantly affected financial performance of Garissa Water and Sewerage Company. The study concluded that inventory cost management practices have significant positive effects on the financial performance of Garissa Water and Sewerage Company. The study recommends that the management of Garissa Water and Sewerage Company strengthen the implementation of inventory cost management practices through regular reviews, staff training, improved cost allocation, and enhanced inventory control systems.