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Factors Affecting the Performance of the Public Service Vehicles (PSV) Sector in the Nairobi County

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dc.contributor.author Okwako, Anthony
dc.date.accessioned 2017-06-14T09:00:43Z
dc.date.available 2017-06-14T09:00:43Z
dc.date.issued 2017
dc.identifier.uri http://erepo.usiu.ac.ke/11732/3237
dc.description A Research Project Report Submitted to the Chandaria School of Business in Partial Fulfilment of the Requirement for the Degree of Global Executive Masters in Business Administration (GeMBA) en_US
dc.description.abstract The Public Service Vehicles (PSVs), commonly referred to as “matatu” is the commonly used form of public transport in Kenya, estimated to be used by 80% of the daily commuters. It is also estimated to have an annual turnover of over Ksh. 73 billion. The purpose of the study is to determine the factors affecting the performance of the PSVs sector in the Nairobi County. The study aims at answering the following research questions: How does transport infrastructure management affect performance of the PSV sector in the Nairobi County? What are the effects of alternative transport means on the performance of PSVs sector in the Nairobi County? How does professionalism affect the performance of the PSVs sector in the Nairobi County? The study applied an explanatory research design which aided in the study while collecting qualitative and quantitative data. The study’s target population included drivers and the management teams of PSVs SACCOs whose vehicles ply the Nairobi- Ngong route number 111. The study employed simple random sampling so as to get 5 management staff and 5 drivers from each of the four SACCOs that operated on that route, therefore making a sample size of 40 respondents. Structured questionnaires were used in collecting primary data. The study used the aide of research assistants to administer the questionnaires to the respondents. The filled questionnaires were analyzed qualitatively and quantitatively. Statistical Package for Social Sciences (SPSS) version 21 was used for analysis where means, frequencies and percentages were derived for each variable. Results of the study were then presented in tables and figures. The study found out that there was better PSVs SACCOs coordination on the Ngong – Nairobi route with a prescribed code of conduct for their staff, engaged qualified members in its management, persons entrusted with managing the SACCOs had wide experience in public transport management, well educated, always informed of key changes affecting the business, motivate staff and always strive to train the crew on customer service, SACCO encourages drivers not to work for more than eight hours, had measures of monitoring the behaviour of its crew on the roads and managers had a wide network with key stakeholders in the industry. The study also found out that the managers of the SACCOs always ensures that all its vehicles have the necessary licenses before being allowed to join the road, pays for licenses on behalf of its members, had a way of reaching to all its members whenever it has important information, had adequate employees to run its office affairs, had mechanisms of training its crews on basic customer service, had a well stipulated pricing list for their services, had clearly outlines on the condition of vehicles to be registered under it. The study established that business had been affected by private personal cars on the Ngong – Nairobi route, other SACCOs operating along the Ngong- Nairobi Route, the motor cycles business and innovative online taxi operations. The study revealed that SACCO had a clear outline on the qualifications of drivers to be engaged, clear criterion on qualifications of conductors to be employed in the SACCO, clear stipulation on remuneration of the driver and conductor, had capacity to train matatu crews on basic customer service skills, gave refresher courses to drivers to ensure they remain competent, had well qualified route inspectors to ensure that the crew observe laid down rules, dealt with other stakeholders in the industry in a professional manner, had a professional legal advisors to deal with all legal issues in the SACCO and ensures that only road worthy vehicles are allowed on the road. From the findings, the study concluded that transport infrastructure management is a crucial field within the environment of the PSV business thus presents numerous potential obstacles. Management competence is often determined by the availability of management and financial information. Managerial skills are important in running any business. Managerial skills assist managers to solve issues that are directly relevant to the current, fast shifting business environment. The study concludes that competition from Taxi cabs was identified as the biggest threat from alternative transport followed by competition posed from motor cycles. Competition from taxi cabs was also cited as a source of consumers bargaining power and private personal cars least seen as a threat. Competition from other alternative non-motorized transport had the lowest threat. The study concludes that there was involvement of management of the SACCOs and crew through their discussions and decisions relating to their industry as well as strengthening their capacity to manage the industry and to selfregulate. Some of the SACCOs were effectively managing their routes and deals with other stakeholders in the industry in a professional manner. The study recommends that there is need to charge all the staff with the responsibility of ensuring right operations strategies are put in place. Management in PSVs SACCOs need to hire qualified personnel, develop rewarding system for productive operations strategies and give necessary support as the best way of attainment of performance in PSVs Sector. The study recommends that there is need to charge all the staff with the responsibility of ensuring right operations strategies are put in place. Management in PSVs SACCOs need to hire qualified personnel, develop rewarding system for productive operations strategies and give necessary support as the best way of attainment of performance in PSVs Sector. The study recommends the study recommends that policy makers should impose policies to govern the transport sector. The key focus should be on formulating policies that will improve public transport safety for the citizens. The policies formed should also be friendly to ensure that both service provider and passengers appreciate the transport industry. This study concentrated on the factors affecting the performance of PSVs sector in Nairobi County. The study concentrated on PSVs SACCOs and their staff operating PSVs on the Nairobi – Ngong route (Route 111), and thus, the same study can be conducted on other PSVs SACCOs in other routes in Nairobi County for comparison purposes. The study also recommends that transport regulatory body should be included. en_US
dc.language.iso en en_US
dc.publisher United States International University - Africa en_US
dc.subject Public Service Vehicles (PSV) en_US
dc.subject Performance en_US
dc.subject Nairobi County en_US
dc.title Factors Affecting the Performance of the Public Service Vehicles (PSV) Sector in the Nairobi County en_US
dc.type Thesis en_US


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