• Zawadi Mdasha Jomo Kenyatta University of Agriculture and Technology
  • Dr. Paul Kariuki (PhD) Jomo Kenyatta University of Agriculture and Technology
  • Dr. Peter Wanjohi (PhD) Jomo Kenyatta University of Agriculture and Technology


Purpose of the study: The purpose of this study was to examine the relationship between energy efficiency and performance of large manufacturing firms in Kenya. Large Manufacturing firms are critical to the economic development of a nation and the wellbeing of its citizens. However, most of the large manufacturing firms in Kenya have recently recorded a decline in performance.

Research methodology: The study applied descriptive and correlational research designs. The target population was 499 and the sample size was 336 respondents selected through stratified and simple random sampling techniques. A questionnaire was designed, and experts in the fields of strategic management were used to determine the validity and reliability of the data collection instruments. The unit of analysis included large manufacturing firms, while the unit of observation included managers from middle level management and top-level management. The study used descriptive and inferential statistics to analyze the results with help of SPSS version 22.

Findings: The study found significant correlation between energy efficiency (0.499 and the performance of large manufacturing firms.  The study found that energy Efficiency exhibited the strongest positive influence (Beta = 0.994, p = 0.001), accounting for 24.9% of the variance in firm performance (R² = 0.249).

Conclusion:  The study concludes that energy efficiency positively influences the performance of large manufacturing firms in Kenya. The positive influence observed suggests that companies that prioritize energy efficiency measures, such as investing in renewable energy sources, implementing strategies to improve energy efficiency, and conducting regular energy audits, are more likely to achieve better overall performance outcomes.

Recommendations: The study recommends that large manufacturing firms in Kenya prioritize investments in energy efficiency initiatives as a strategic imperative for enhancing their performance. It is crucial for policymakers and industry stakeholders to support and incentivize the adoption of energy-efficient practices through targeted policies, financial incentives, and capacity-building initiatives to promote a more sustainable and resilient manufacturing sector in Kenya.

Keywords: Energy efficiency, performance, large manufacturing firms, Kenya

Author Biographies

Zawadi Mdasha, Jomo Kenyatta University of Agriculture and Technology

Postgraduate student, Jomo Kenyatta University of Agriculture and Technology

Dr. Paul Kariuki (PhD) , Jomo Kenyatta University of Agriculture and Technology

Lecturer,  Jomo Kenyatta University of Agriculture and Technology

Dr. Peter Wanjohi (PhD), Jomo Kenyatta University of Agriculture and Technology

Lecturer, Jomo Kenyatta University of Agriculture and Technology


Aldieri, L., Kotsemir, M., & Vinci, C. P. (2020). The role of environmental awareness through the technological proximity in the implementation of the sustainable development. Business strategy and the environment, 29(2), 493-502.

Aslam, S., Rehman, R. U., & Asad, M. (2020). Linking environmental management practices to environmental performance: The interactive role of environmental audit. Pakistan Journal of Commerce and Social Sciences (PJCSS), 14(1), 99-119.

Babiak, K., &Trendafilova, S. (2020). Corporate Social Responsibility and environmental responsibility: motives and pressures to adopt green management practices. Corporate social responsibility and environmental management, 18(1), 11-24.

Baraza, D. N., &Arasa, R. (2021). Effects of Firm characteristics on Performance of Manufacturing firms in Kenya. International Journal of Economics, Commerce and Management, 5(9) 311-328.

Chen, S. Y., & Chen, D. K. (2018). Air pollution, government regulations and high-quality economic development. Econ. Res. J, 53, 20-34.

Gualandris, J., &Kalchschmidt, M. (2021). Developing environmental and social performance: the role of suppliers’ sustainability and buyer–supplier trust. International Journal of Production Research, 54(8), 2470-2486.

Herce, C., Biele, E., Martini, C., Salvio, M., & Toro, C. (2021). Impact of energy monitoring and management systems on the implementation and planning of energy performance improved actions: An empirical analysis based on energy audits in italy. Energies, 14(16), 47-52.

Hindle, T. (2019). “Triple Bottom Line: It Consists of Three Ps: Profit, People and Planet. Economist.

Jackson, M. C. (2007). Systems approaches to management. Springer Science & Business Media.

Jamali, D. (2019). A stakeholder approach to corporate social responsibility: A fresh perspective into theory and practice. Journal of business ethics, 82(1), 213-231.

Jiang, L., Zhou, H., & He, S. (2021). Does energy efficiency increase at the expense of output performance: Evidence from manufacturing firms in Jiangsu province, China. Energy, 2(20), 119-131

Kalantzis, F., & Revoltella, D. (2019). Do energy audits help SMEs to realize energy-efficiency opportunities?. Energy Economics, 83(12), 229-239.

Kasych, A., Suler, P., & Rowland, Z. (2020). Corporate environmental responsibility through the prism of strategic management. Sustainability, 12(22), 95-109.

Kenya Association of Manufacturing (K.A.M) (2020).The Kenya Association of Manufacturing Industrial Business Agenda, Priority actions to build competitive local industry to expand employment in Kenya

Khan, S. A. R., Yu, Z., & Umar, M. (2021). How environmental awareness and corporate social responsibility practices benefit the enterprise? An empirical study in the context of emerging economy. Management of Environmental Quality: An International Journal, 32(5), 863-885.

Kibogy, J. C. (2021). The Effect of Corporate environmental responsibility on Organizational Performance: A Case of Bamburi Cement Limited (Doctoral dissertation, Daystar University, School of Business and Economics).

Knight, F. H. (2020). Risk, uncertainty and profit. Courier Corporation.

Kogan, L., & Tian, M. H. (2020). Firm characteristics and empirical factor models: a data-mining experiment. FRB International Finance discussion paper, (1070).

Lavrakas, P. J. (2019). Encyclopedia of survey research methods. Sage Publications.

Lee, K. H., Park, B. J., Song, H., & Yook, K. H. (2021). The value relevance of Environmental Impact Assessment s: evidence from Japan. Business Strategy and the Environment, 26(5), 609-625.

Macharia, K. K., Gathiaka, J. K., & Ngui, D. (2022). Energy efficiency in the Kenyan manufacturing sector. Energy Policy, 16(1), 112-117

Makori, D. M., & Jagongo, A. O. (2020). Environmental accounting and firm profitability: An empirical analysis of selected firms listed in Bombay stock exchange, India.

Menike, L. M. C. S. (2020). Impact of Environmental Disclosure on Firm Performance: An Empirical Analysis of Food, Beverage and Tobacco Sector Companies Listed in Colombo Stock Exchange, Sri Lanka. International Journal of Academic Research in Business and Social Sciences. 10(10), 518-536.

Moon, H., & Min, D. (2020). A DEA approach for evaluating the relationship between energy efficiency and financial performance for energy-intensive firms in Korea. Journal of Cleaner Production, 25(5), 120-128.

Muloli, M. M. (2020). Effects of Corporate Social Responsibility on Firm Performance: Implication for Banking Sector in Tanzania.

Mwangi, M., & Mwiti, J. K. (2020). The effect of voluntary disclosure on stock market returns of companies listed at the Nairobi securities exchange. Journal of Finance, 2(16),42-57

Nderitu, K. M., &Ngugi, K. (2020). Effects of green procurement practices on an organization performance in manufacturing industry: case study of East African Breweries Limited. European Journal of Business Management, 2(1), 341-352.

Nederhand, J., & Klijn, E. H. (2019). Environmental regulations compliance in public–private partnerships: Its influence on the innovative character of projects and on project performance. Administration & Society, 51(8), 1200-1226.

Ntiamoah, E. B., Egyiri, P. O., & Kwamega, M. (2020). Corporate social responsibility awareness, firm commitment and organizational performance. Journal of Human Resource and Sustainability Studies, 2020.

Osazefua, I. J. (2019). Operational efficiency and financial sustainability of listed manufacturing companies in Nigeria. Journal of Accounting and Taxation, 11(1), 17-31.

Schalk, J. (2021). Linking environmental regulations compliance to policy performance: Nonlinear effects in Dutch local government policy making. The American Review of Public Administration, 47(4), 479-495.

Somjai, S., Fongtanakit, R., & Laosillapacharoen, K. (2020). Impact of management responsibility, environmental management accounting and green innovation on firm performance: An empirical investigation. International Journal of Energy Economics and Policy, 10(3), 204.

Tasneem, F., Muhammad, S., & Basit, A. (2021). The Impact of Environmental Reporting on Firms’ Performance. International Journal of Accounting and Business Management, 4(2), 275-300.

TATA CHEMICALS MAGADI LIMITED (2021). Annual Report And Financial Statements For The Year Ended 31 March 2021. Retrieved from

World Bank Group (2019). Kenya Economic Update. Reviving Private Sector Credit Growth and Boosting Revenue Mobilization to Support Fiscal Consolidation.

Yang, Z., Liu, W., Sun, J., & Zhang, Y. (2021). Corporate environmental responsibility and environmental non-governmental organizations in China. Sustainability, 9(10), 1756.
How to Cite
Mdasha, Z., Kariuki, P., & Wanjohi, P. (2024). ENERGY EFFICIENCY AND PERFORMANCE OF LARGE MANUFACTURING FIRMS IN KENYA. African Journal of Emerging Issues, 6(4), 25 - 45. Retrieved from