Financial Management Practices and Operational Performance of Waste Management Companies in Nairobi County; A Case of Taka Taka Solutions
Abstract
Waste management companies in Nairobi County face persistent financial and operational challenges that compromise efficiency and sustainability. This study investigated the effect of financial management practices working capital management, cost management, and capital budgeting on operational performance, with Taka Taka Solutions serving as the case study. The moderating role of environmental regulations was also analyzed. The study employed a descriptive correlational research design targeting 350 employees, from which a stratified random sample of 203 respondents was selected. Data were collected using structured questionnaires and analyzed through descriptive statistics, Pearson correlation, multiple regression, and moderated regression models. The findings revealed that working capital management (β = 0.214, p < 0.01), cost management (β = 0.263, p < 0.01), and capital budgeting (β = 0.187, p < 0.05) each had a positive and statistically significant effect on operational performance. Environmental regulations moderated these relationships by strengthening them under supportive regimes and constraining them under restrictive ones. The study concludes that effective financial management practices are critical for enhancing the efficiency and competitiveness of waste management companies. It recommends that managers strengthen working capital systems, institutionalize cost management frameworks, and adopt rigorous capital budgeting, while policymakers harmonize regulatory frameworks and provide supportive incentives.
Keywords: Financial Management Practices, Working Capital Management, Cost Management, Capital Budgeting, Environmental Regulations, Operational Performance, Waste Management
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