Effect of Government Regulations on the Level of Efficiency in Strategic Planning of Oil Marketers in Kenya

Abstract

In the current business world, it is imperative that an organization runs its operations efficiently and in response to the needs of its stakeholders. In Kenya the oil sector has over 30 oil importing and marketing companies which contribute immensely higher GDP for the country and is expected to boost the economy by over 20% in 2030. Previous studies done has shown proliferation of counterfeit oil products in the market, tax evasion and tampering with product quality. The Government has countered all these through regulations, however little is known on the effect of these regulations so as to bring a win-win situation for all stakeholders. The purpose of the study was to investigate the effect of government regulations on the level of efficiency in strategic planning of oil marketers in Kenya. Specifically the study based on; determining the effect of licensing regulations, investigate the effect of safety standards, examine the effect of quality standards and establish the effect of price regulations, all on the level of efficiency in strategic planning of oil marketers in Kenya. The study employed Resource dependency Theory, Strategy implementation Theory and Stakeholder involvement theory. The study adopted quantitative survey design on 219 managers. The study adopted a stratified random sampling on a sample size of 66. Primary data was then collected using questionnaires from which 58 questionnaires were valid for the study making a response rate of 87.8%. secondary data was obtained from records, ppublications and audited financial reports.