THE EFFECT OF NON-REVENUE WATER ON REVENUE COLLECTION IN PUBLIC WATER COMPANIES
Emelda Nafula Nyongesa - Doctor of Philosophy in Finance, Department of Business Administration in the School of Business and Entrepreneurship, Jomo Kenyatta University of Agriculture and Technology, Kenya
Prof. Gregory Simiyu Namusonge - Lecturer, Jomo Kenyatta University of Agriculture and Technology, Kenya
Dr. Elisabeth Makokha Nambuswa - Lecturer, Jomo Kenyatta University of Agriculture and Technology, Kenya
ABSTRACT
The general objective of the study was to investigate the impact of Financial determinants on revenue collection in public water companies. The specific objective of the study was to assess the effect of non-revenue water on revenue collection in public Water Companies. The study applied public goods theory. Stratified sampling was employed, and a mixed research design was adopted, with a sample of 500 drawn from a target population of 1000. The results under descriptive statistics had an average mean of 4.38, and the standard deviation was 0. 78. Frequency on the level of agreement indicated that 88.7% of the respondents agreed that non-revenue water is a financial determinant of revenue collection. While 13.3 % of the respondents were not sure or disagreed. Inferential statistics findings indicated a coefficient of determination of (r =- 0.166**) with a significant level of (pv= 0.000), implying that there is a weak negative correlation between nonrevenue water and revenue collection in public water companies. Using pv=0.000, which is less than the hypothesis value, which is p-value≤ 0.005, indicating that non-revenue water has a significant impact and inverse relationship with revenue collection, hence a financial determinant of revenue collection in public water companies. The study recommended further investigations on unbilled metered consumptions, illegal connections on transmission line leakages, and unauthorized consumption, which are crucial financial determinant on enhancement of quality and sustainable clean and quality water service delivery in public water companies.