Abstract
The adoption of environmental policy among large manufacturing firms has been recognized for enhancing their economic performance. This is crucial for achieving Kenya's Vision 2030, the fourth medium term plan (2023-2027) and the Bottom-Up Economic Transformation Agenda (BETA) for Inclusive Growth. Despite the slow pace, small and medium-sized enterprises (SMEs) are now adopting these policies to reduce their environmental footprint. However, there is limited documentation on how these practices affect their economic performance. Hence, this study aimed at examining stakeholders' perceptions on the influence of adopting energy efficiency practices on the economic performance of selected manufacturing SMEs in Nakuru County. The study was guided by the ecological modernization theory (Win-Win principle). An explanatory sequential mixed-method research design was employed, targeting SME proprietors in the manufacturing sector with a sample size of 76 respondents. Descriptive and inferential statistics (linear regression) was used to analyze quantitative data, while content analysis was used to analyze qualitative data. The study found out that SMEs largely adopted the use of energy-efficient bulbs and turned off lights when not in use. However, they used solar lighting as an energy efficiency practice to a lesser extent because they consider this practice expensive. The study also found that stakeholders perceived that energy efficiency practices adopted had a significant influence on the economic performance of selected manufacturing SMEs. This finding implied that energy efficiency practices adopted by manufacturing SMEs would have an influence on SMEs economic performance. This study recommends that the government, both national and county should sensitize the SMEs as well as allocate financial and technical resources to support SMEs implement and upscale their energy efficiency practices within their operations. The focus of energy efficiency practices should be on those that reduce production costs and enhance competitiveness such as those that improve SMEs customer base
Published Version
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