Influence Of Transport And Fleet Rationalization On Performance Of State Corporations In Kenya

Purpose: The purpose of the study was to assess the influence of transport and fleet rationalization on performance of state corporations Kenya. Methodology: Descriptive research design was adopted because it allowed an in-depth study of the subject. The target population was all the 187 state corporations in Kenya. Questionnaires were administered to collect qualitative and quantitative data from a sample of 127 heads of transport and logistics department among state corporations operating in Kenya, who were selected using simple random sampling, from the four strata. Questionnaires were used to collect data. The questionnaires were tested for validity and reliability using 10% of the total sample respondents. Data was analyzed through descriptive statistical methods such as means, standard deviation, frequencies and percentage. Inferential analyses were used in relation to correlation analysis and regression analysis to test the relationship between the four explanatory variables and the explained variable. Multiple regression models were used to show the relationship between the predicted variable and the predictor variables. The data generated was keyed in and analyzed by use of Statistical Package of Social Sciences (SPSS) version 21 to generate information which was presented using charts, frequencies and percentages. Results and conclusion: The response rate of the study was 76%. R square value of 0.715 means that 71.5% of the corresponding variation in performance of state corporations in Kenya can be explained or predicted by (logistics information management, consignment management, distributor base management, transit management) which indicated that the model fitted the study data. The results of regression analysis revealed that there was a significant positive relationship between dependent variable and independent variable at (β = 0.715), p=0.000 <0.05). The findings of the study concluded that logistics information management, consignment management, distributor base management and transit management have a positive relationship with performance of state corporations in Kenya. Policy recommendation: The study recommended that state corporations should embrace transport and fleet rationalization aspects so as to improve performance and further researches should to be carried out in other firms to find out if the same results can be obtained.