Effect of Problem-Solving Strategy on Organization Performance of The Electricity Energy Sub-Sector in Kenya

Abstract

The electricity energy sub-sector in Kenya plays a pivotal role in driving the country’s economic growth, industrialization and social transformation. The government has invested heavily in the sector, channelling billions of shillings into generation, transmission, and distribution infrastructure. Despite these milestones, the performance of the electricity energy sub-sector remains below optimal levels. Persistent challenges such as frequent power outages, high system losses, aging infrastructure and high costs of electricity undermine the sector’s ability to deliver reliable and affordable energy therefore the study sought to assess the effect of problem-solving strategies on organization performance of the electricity energy Sub-Sector in Kenya. The study was anchored on dynamic capabilities theory. The study adopted a pragmatist philosophy and employed a mixed-method convergence design, collecting primary data through questionnaires and interviews from 199 respondents comprising top, middle, and lower-level management across all six companies in Kenya's electricity energy sub-sector. Quantitative data were analyzed using descriptive and inferential statistics while qualitative data were analyzed thematically using NVivo, with reliability assessed through Cronbach's Alpha at 0.7 threshold and validity tested through a pilot study involving 18 respondents from Rabai Power Ltd Kenya. The study found that problem-solving strategy, characterized by effective monitoring systems for early problem identification, structured evaluation techniques using root cause analysis, and strategically aligned solutions implemented within agreed timelines, significantly enhances organizational performance in Kenya's electricity energy sub-sector, though gaps exist in documentation practices and employee participation in brainstorming sessions. The study concludes that problem-solving strategy has a strong and statistically significant positive effect on organizational performance in the electricity energy sub-sector in Kenya, as embedded problem-solving capabilities not only mitigate disruptions but also catalyze innovation and adaptability. The study recommends that energy institutions should invest in comprehensive internal capacity-building programs that focus on root-cause analysis, strategic thinking, and scenario planning to enhance problem-solving skills and strengthen organizational resilience. Organizations should establish robust documentation systems for problem evaluation results to institutionalize organizational learning and prevent recurrence of similar challenges. Management should create more inclusive and participatory problem-solving cultures by actively involving employees at all levels in brainstorming sessions, as frontline staff possess valuable practical insights that can lead to more innovative and effective solutions.