STRATEGIC FACTORS INFLUENCING TRANSPORT AND DISTRIBUTION OF PETROLEUM PRODUCTS IN KENYA: A CASE STUDY OF KENYA PIPELINE COMPANY

Abstract

The transport and distribution of the petroleum products by Kenya Pipeline Company is key in the social economic development of the country. Efficiency in the transport and distribution of the petroleum products ensures that the right volumes of the products are delivered, at the right price, and in a sustainable manner. This study sought to examine the strategic factors (infrastructure, information and communication technology, security, and pipeline capacity) on transport and distribution of the petroleum products. The study used the resource-based theory and dynamic capabilities theory. The study adopted a descriptive research design. The target population was sourced from safety, security, maintenance, operations, Information Technology Support, senior management staff at Head Office, and Corporate Social Responsibility Staff. The study therefore used a target population of 234 staff members for the study. The sample size of the study was 148 respondents. The statistical analysis that was undertaken included the frequency distributions, chi square, correlation analysis and multiple linear regression analysis. The study results concluded that the various variables of the strategic factors that is ICT, Infrastructure, pipeline capacity, and security as well as the transport and distribution of the petroleum products were positively and significantly correlated amongst themselves. This indicated that change in each of the variable was observed to be associated with changes in any other variable in a pair wise manner that was observable in the sample and would be observable in the population. In respect to the relationship between the strategic factors and transport and distribution of petroleum products. The study concluded that strategic factors had a huge influence on transport and distribution of the petroleum products due to a high correlation coefficient and coefficient of determination. In respect to the influence of infrastructure on the transport and distribution of the petroleum products, the study concluded that there was a positive influence of infrastructure on the transport and distribution that would also prevail in the population. The regression coefficient for infrastructure stood at 0.217. Similarly, in respect to the influence of ICT on the transport and distribution of the petroleum products at KPC, the study concluded that there was a positive influence of ICT on transport and distribution of petroleum products at KPC. The regression coefficient of ICT stood at 0. 261.The study had also sought to examine on whether there was statistically significant influence of security on transport and distribution of petroleum products at Kenya Pipeline. The study results revealed that security had a positive influence on the transport and distribution of petroleum products at Kenya Pipeline Company. A regression coefficient of 0.250 was achieved. These results were statistically significant. The study further sought to examine the influence of pipeline capacity on the transport and distribution of the petroleum products at Kenya Pipeline Company. A conclusion was reached that pipeline capacity had a positive and significant influence on the transport and distribution of the petroleum products at Kenya Pipeline Company. This was due to a regression model of 0.193. The study recommended that all the strategic factors that is infrastructure, ICT, security, and pipeline capacity should be emphasized at Kenya Pipeline Company in order to improve on the performance of transport and distribution of the petroleum products. Based on the regression coefficients, the study recommend that the strategic factors should be emphasized in terms of ICT, Security, infrastructure, and pipeline capacity aspects due to their relative strengths on the transport and distribution of the petroleum products. The study further recommends that other factors influencing the transport and distribution of the petroleum products should be examined by other scholars.