KPLC STRATEGIC PLAN

UNIVERSITY OF NAIROBI
DBA 401 ASSIGNMENT

D33/138626/2019

SUMEIYA FARJALLAH

QUESTION
Using a sample strategic plan of a Kenyan organization of your choice; identify,

describe, explain and evaluate the rationale of each component of the strategic plan.

Map out how and the extent to which the components reflect the content of the DBA

401 course that you are undertaking. (30 Marks)

Requirements:

i. Organize your work logically as per the requirements of the questions with
clear section headings. There should a cover page and a table of contents.
ii. Use times new roman font, size 12, 1.5 line spacing justified format (any
violation of any of these will render the assignment null and unmarkable).
iii. Attach a scanned cover page of the sample strategic plan.

Table of Contents
UNIVERSITY OF NAIROBI.......................................................................................................2
QUESTION....................................................................................................................................2
KENYA POWER AND LIGHTENING COMPANY STRATEGIC PLAN............................4
Strategic Vision and Mission........................................................................................................4
Rationale.....................................................................................................................................5
Kenya Power and Lightening Company Objectives...................................................................5
Rationale.....................................................................................................................................6
Strategy to Achieve Objectives of Kenya Power and Lightening Company............................7
Rationale.....................................................................................................................................8
SITUATIONAL ANALYSIS........................................................................................................9
Strength Weaknesses Opportunity and Threats (SWOT) Analysis........................................12
Rationale...................................................................................................................................16
Monitoring Evaluating and Taking Corrective Action............................................................17
Rationale...................................................................................................................................18
How Kenya Power and Lightening Company relates to DBA 401 course.............................19
 KENYA POWER AND LIGHTENING COMPANY STRATEGIC PLAN

Strategic Vision and Mission

KPLC's key mandate is to plan for sufficient electricity generation and transmission capacity to
meet demand; build and maintain the power distribution and transmission network and retail
electricity to its customers

VISION STATEMENT

The statement that captures the medium to long-term aspirations of the Company is:
“To provide world class power that delights our customers”

This vision likely takes into account consumer preferences, and the company's long-term growth
goals in the region.

MISSION STATEMENT

The mission statement is the overall framework within which KPLC’s strategies are formulated.
The mission

statement is:

“Powering people for better lives”

This mission is likely driven by a combination of social responsibility and a desire to maintain a
positive reputation in the market.

Rationale
In the case of KPLC in Kenya, a clear vision and mission can help the organization:

 Focus its efforts: By having a clear vision and mission, KPLC can prioritize its goals and
allocate resources more effectively in Kenya, resulting in a more efficient and effective
use of time and resources.
 Attract and retain employees: A strong vision and mission can help KPLC attract and
retain employees who are motivated by the organization's purpose and direction in
Kenya.
 Differentiate from competitors: A clear vision and mission can help KPLC differentiate
itself from its competitors in Kenya, making it easier for customers to understand what
sets the company apart.
 Foster alignment: A shared vision and mission can help align the efforts of employees
and stakeholders in Kenya, ensuring that everyone is working towards the same goals and
objectives.
 Measure success: A well-defined vision and mission can provide a framework for
evaluating the success of KPLC in Kenya and determining if it is meeting its goals and
objectives in the region.
Kenya Power and Lightening Company Objectives
The objectives of KPLC organization in Kenya are likely the specific goals and targets that the
company has set for itself in order to achieve its vision and mission in the market. Some possible
objectives for KPLC in Kenya may include:

1. Kenya Power's key mandate is to plan for sufficient electricity generation and
transmission capacity to meet demand.
2. Build and maintain the power distribution and transmission network and retail electricity
to its customers.
3. Creation of employment opportunities and to engage in social responsibility.
4. Market share growth: To increase KPLC's market share in Kenya by expanding its
customer base and capturing a larger share in remote areas too.
5. Brand recognition: To increase the visibility and recognition of the KPLC brand in
Kenya, through advertising and marketing campaigns, and by expanding the company's
power packages.
6. Product innovation: To introduce alternative ways of power production that meet the
changing needs and preferences of customers in Kenya.
7. Customer satisfaction: To ensure high levels of customer satisfaction through the
continuous supply of power and exceptional customer service.
8. Employee development: To provide training and development opportunities for
employees in Kenya, in order to improve their skills and capabilities, and to ensure that
they are equipped to meet the challenges of the market.
9. Community engagement: To contribute to the development of local communities in
Kenya through social responsibility initiatives, such as community outreach programs
and environmental sustainability efforts.

Rationale
The rationale for setting objectives in KPLC organization in Kenya is to provide specific and
measurable targets that the company can work towards in order to achieve its vision and mission
in the market. The objectives serve as stepping stones towards the company's long-term goals,
and provide a way to track progress and measure success.
Having well-defined objectives helps KPLC:

 Focus its efforts: By having specific objectives, KPLC can prioritize its efforts and
allocate resources more effectively, ensuring that it is working towards the most
important goals.

 Improve decision-making: Objectives provide a framework for making decisions,

allowing the company to determine which initiatives and investments are most likely to
help it achieve its goals.

 Drive accountability: Objectives help ensure accountability, as employees and

stakeholders can be held accountable for achieving specific targets and contributing to the
company's success.

 Foster alignment: Objectives help align the efforts of employees and stakeholders,
ensuring that everyone is working towards the same goals and objectives.

 Measure success: Objectives provide a way to evaluate the success of the company,
allowing KPLC to determine if it is meeting its goals and making progress towards its
vision and mission.

Strategy to Achieve Objectives of Kenya Power and Lightening Company

A strategy that can be used to achieve the KPLC organization objectives in Kenya may involve
the following steps:

1. Market analysis: Conduct a comprehensive analysis of power supply in Kenya to better

understand the opportunities and challenges facing the company.
2. Customer research: Gather data on customer preferences and needs in Kenya, in order to
inform product design and development, and to ensure that the company is meeting the
needs of its target market.
3. Marketing and advertising: Implement targeted marketing and advertising campaigns in
Kenya, in order to increase the visibility and recognition of the KPLC brand, and to drive
sales growth.
4. Retail expansion: Expand the retail power packages of KPLC in Kenya, by opening new
stores and increasing its presence in key markets.
 5. Employee development: Invest in the training and development of employees in Kenya,
in order to improve their skills and capabilities, and to ensure that they are equipped to
meet the challenges of the market.
6. Community engagement: Engage with local communities in Kenya through social
responsibility initiatives, such as community outreach programs and environmental
sustainability efforts, in order to contribute to the development of local communities.
7. Continuous improvement: Regularly evaluate the effectiveness of the strategy and make
necessary adjustments, in order to continuously improve and achieve the objectives set by
KPLC in Kenya.

Rationale
The rationale for developing the above strategy to achieve KPLC organization objectives in
Kenya is to provide a comprehensive and actionable plan for realizing the company's goals and
targets in the market. The strategy helps KPLC to:

 Address market opportunities: The market analysis and customer research help KPLC to
identify key opportunities in the market, and to develop products and initiatives that
address the needs and preferences of customers in Kenya.
 Drive growth: The marketing and advertising campaigns, retail expansion, and product
development initiatives help KPLC to drive growth and increase its market share in
Kenya.
 Improve customer satisfaction: The customer research and product development
initiatives help KPLC to ensure that it is meeting the needs of its target market and
delivering high levels of customer satisfaction.
 Enhance employee capabilities: The employee development initiatives help KPLC to
improve the skills and capabilities of its employees, ensuring that they are equipped to
meet the challenges of the market.
 Foster positive relationships with communities: The community engagement initiatives
help KPLC to foster positive relationships with local communities in Kenya, contributing
to the development of local communities and building a positive reputation for the
company.
  Monitor progress and make necessary adjustments: The continuous improvement
approach helps KPLC to regularly evaluate the effectiveness of its strategy and make
necessary adjustments, in order to ensure that it is making progress towards its objectives
and continuously improving.

SITUATIONAL ANALYSIS
 Political Factors
 Legal Factors
 Economic Factors
 Social factors
 Technological factors

Political Factors
Political factors likely to impact on the company during the planning horizon:
- Devolution of Government is reshaping the process of service delivery. As
development planning is now devolved to county government, the company has to
now treat counties as the basic planning units for network development plans and
integrate by a bottom-to-top approach.
- International relations, especially with neighbouring countries, affect the level of
insecurity and thus the business climate.
- A regulated tariff-setting process, under the direction of public policy, has led to
irregular timing of tariff reviews. Public policy expediency has taken precedent
over scheduled tariff reviews that are needed to timely accommodate new revenue
requirements for the sub-sector.

- Other political factors that may likely influence energy consumption during the
plan period include global and regional policy changes, government financial
policies and changes in taxation.

Economic Factors
 - Major economic factors with potential to adversely affect the company’s business
continue to include the movement of fuel prices, exchange rates, interest rates and
inflation affecting input costs. The effect of these factors in raising end-user cost of
electricity lowers the competitive advantage, potential sales and profitability of the
company.
- Competition in the electricity sub-sector from self-generation by customers or non-KPLC
supply to large-power customers may not rise significantly due to the substantial price
disadvantage of nongrid thermal electricity.
- During the plan period, economic shocks are invariably expected to occur given the
volatile nature of the operating environment.
- Recent natural resource discoveries will be a major source of business opportunities
within the plan period. In the medium term, new power demand from extractive
industries which are within reach of the national grid, especially titanium and coal, will
be a significant source of demand growth.

Social Factors
- Rising education and literacy levels in the country’s population entails changing
lifestyles. The shift from traditional to modern is associated with a greater percentage of
the population seeking electricity connection. This has been a major contributor to the
acceleration in customer applications and connectivity experienced in recent decades.
- Continued poverty levels in the country means electricity will remain out of reach to
millions of people in spite of subsidies provided by the Rural Electrification programme
and by the life-line domestic tariff.
- Vandalism and crime against company assets entails a substantial direct material
financial cost to the company as well as lost sales revenue and customer inconvenience
resulting from outages caused by vandalized equipment.
- The company will continue to find necessity for diverse reasons to implement strategies
for community engagement. This will especially be in regard to promoting public safety
against the dangers of electricity infrastructure, marketing initiatives to drive the
customer connectivity campaign, promotion of new company services and facilities, and
the implementation of corporate social responsibility initiatives.
Technological Factors
- Introduction of new technologies provides many potential benefits to the
company. Typical objectives that will be served by new technologies will include
reducing power losses, operational cost savings, lowered peak demand, new or
increased revenue streams, improved long-term growth prospects and improved
customer satisfaction.
- The major new technologies that will be implemented by the company during the
plan period will aim to increase SMART grid capabilities of the network.
- Change in technology use by the public can also affect the pattern of power
demand growth. For example, the need for all schools and other public institutions
to adopt digital technology will require all public institutions to be connected to
the national grid in the next few years and will significantly raise the level of
power demand. Use of energy efficient equipment by customers may also play a
significant role in the variation of demand of electricity.

Environmental Factors
Several factors in the physical environment will influence the outcome of the company’s
operations during the planning period. These include:
- International environment protection policies require that efforts are made to
reduce greenhouse gas emissions in production processes.
- Easy access by customers to renewable sources of energy can significantly impact
on the level of electricity sales. For example, the increased use of solar panels for
water heating and the continuing use of wood fuel for cooking are detrimental to
the company’s electricity sales. While use of renewable energy sources that
degrade the environment, such as wood fuel, should be discouraged, the use of
solar and wind energy, where economic, should be encouraged as part of the
overall energy development plan.
- Other environmental factors with a bearing on operations include territorial,
geographic and climatic considerations such as distance to the grid, elevation,
population density, temperature and other weather attributes. These factors affect
project design and implementation costs, operations and maintenance costs, and
commercial viability of investments in network assets.
Legal Factors
- The Legal and Regulatory environment is set to be reformed in the planning
period as a result of the expected enactment of the Energy Bill 2015. The
institutions to be created under this act will include: the Energy Regulatory
Authority, Energy and Petroleum Institute, Rural Electrification and Renewable
Energy Corporation and Energy and Petroleum Tribunal.
- The Act will require integrated energy planning at both the national and county
levels of government within the framework of the National Energy Policy.
- The act will also specify the legal rights of stakeholders in regard to rights of way
wayleaves, and use of land for energy resources and infrastructure besides setting
licensing requirements for electricity generation, transmission and distribution.

Strength Weaknesses Opportunity and Threats (SWOT) Analysis

The KPLC SWOT analysis serves to identify the internal factors (Strengths and Weaknesses)
and external factors (Opportunities and Threats) that are most relevant to the achievement of
the company’s goals and gives an indication of whether the goals are attainable. This analysis
furthermore provides the basis for strategy formulation to exploit strengths and opportunities
and mitigate challenges and threats in order to achieve the medium term goals.

Strengths

Strengths • Providing an essential service

• High demand
• Ability to readily adapt to a changing
and modernizing operating
environment
• Company presence in all counties
• Well trained and highly skilled
workforce
• High revenue collection rates
• Ability to attract external funding from
 both public and private, domestic
and international sources
• Ability to sustain high growth rates in
new customer connectivity
• Automation – Substations automation,
reduces response times

Weaknesses • Insufficient transmission and

distribution network redundancy
• Inadequate capacity to absorb all the
loan capital financing available
• High internal construction costs
• High transmission and distribution
operating costs
• Power supply quality remains
unsatisfactory
• Uncoordinated planning among
infrastructural developers
• Low level of workforce engagement
• Staff Costs as a % of Transmission and
Distribution Costs (current 50%-
60% to 30 – 35%)
• Insufficient project commitment and
post-implementation analysis,
including business project re-
engineering upon completion of new
projects
such as automation
Opportunities • Long-term growth market due to current
low level of market penetration
• New business ventures in Fibre Optic
telecommunications and
consulting
• Formation of counties
• Good potential for sourcing cheap power
from neighbouring countries
• Lower cost energy from economies of
scale as the power system
expands
• Street lighting opportunities increasing
linkages with county
governments and sales
Threats • Adverse hydrological conditions
• Difficult wayleaves acquisition
• Vandalism of transformers, electricity
line cables and accessories
• Encroachment on electricity line
wayleaves
• Unfavourable land use i.e. low
population density in rural areas leading
to high connectivity cost
• Illegal electricity connections and theft
of electricity
• Limitations due to regulatory
conditions
• Erratic international oil prices
• Delays in tariff reviews
• Insecurity and acts of terrorism leading
to loss of business
 • Self-generation by customers,
especially the use of renewable sources
such as solar and wind
• Inability to absorb all new generation
to be installed in the short to
medium term may substantially raise
capacity costs.
• Levies and taxes imposed by County
Government and other
Government/regulatory bodies.

Implementing and Executing Strategy of Kenya Power and Lightening Company

KPLC organization can implement and execute its strategy in Kenya by taking the following
steps:

1. Assign responsibility: Assign specific individuals or teams with responsibility for

implementing each aspect of the strategy, and ensure that they have the necessary
resources, including budget, personnel, and technology, to carry out their responsibilities.
2. Develop an implementation plan: Develop a detailed implementation plan that outlines
the steps, timeline, and resources required to execute each aspect of the strategy.
3. Communicate the strategy: Communicate the strategy and implementation plan to all
stakeholders, including employees, customers, suppliers, and investors, to ensure that
everyone is aware of the company's goals and plans.
4. Provide training and support: Provide training and support to employees, to ensure that
they are equipped to carry out their responsibilities and support the implementation of the
strategy.
5. Monitor progress: Regularly monitor progress against the implementation plan, and make
any necessary adjustments to ensure that the strategy is being executed effectively.
6. Evaluate performance: Regularly evaluate the performance of the strategy, and make any
necessary adjustments to ensure that it is delivering the desired results and contributing to
the achievement of KPLC's objectives in Kenya.
 7. Celebrate success: Celebrate successes along the way, and communicate them to
employees, customers, suppliers, and investors, in order to maintain motivation and
engagement.

Rationale
The rationale for implementing and executing KPLC organization's strategy in Kenya is to
ensure that the company is making progress towards its objectives and achieving its goals in the
market. By taking action and implementing the strategy, KPLC can:

 Realize its vision and mission: Implementing the strategy helps KPLC to bring its vision
and mission to life, and to achieve its goals in the Kenyan market.
 Address market opportunities: By executing the strategy, KPLC can address key market
opportunities and meet the needs of its target customers, helping it to drive growth and
increase its market share.
 Improve customer satisfaction: By executing the customer research and product
development initiatives, KPLC can improve customer satisfaction and ensure that it is
meeting the needs of its target market.
 Enhance employee capabilities: By executing the employee development initiatives,
KPLC can improve the skills and capabilities of its employees, ensuring that they are
equipped to meet the challenges of the market.
 Foster positive relationships with communities: By executing the community engagement
initiatives, KPLC can foster positive relationships with local communities in Kenya,
contributing to the development of local communities and building a positive reputation
for the company.
 Monitor progress and make necessary adjustments: By regularly monitoring progress and
evaluating the effectiveness of the strategy, KPLC can make any necessary adjustments
to ensure that it is making progress towards its objectives and continuously improving.

Monitoring Evaluating and Taking Corrective Action

KPLC can monitor, evaluate, and take corrective action by following these steps:
 1. Identify areas for improvement: Identify areas for improvement, based on the results of
the performance evaluations and feedback from stakeholders, and prioritize actions to
address any issues.
2. Establish performance metrics: Establish clear performance metrics to measure the
success of the strategy and the progress towards achieving the objectives.
3. Monitor progress: Regularly monitor progress against the performance metrics, and
collect data and feedback from employees, customers, suppliers, and other stakeholders
to assess the effectiveness of the strategy.
4. Evaluate performance: Regularly evaluate the performance of the strategy, using the
performance metrics and feedback from stakeholders to assess its effectiveness and
determine whether it is delivering the desired results.
5. Take corrective action: Take corrective action to address any issues identified, and make
any necessary adjustments to the strategy, implementation plan, or resource allocation, to
ensure that it is delivering the desired results.
6. Re-evaluate performance: Re-evaluate performance after taking corrective action, to
assess the impact of the changes and determine whether the strategy is delivering the
desired results.

Rationale
The rationale for monitoring, evaluating, and taking corrective action in KPLC in Kenya is to
ensure that the company is making progress towards its objectives and achieving its goals in the
market. By continuously monitoring, evaluating, and taking corrective action, KPLC can:

 Ensure that the strategy is delivering the desired results: By regularly monitoring progress
and evaluating the effectiveness of the strategy, KPLC can ensure that it is delivering the
desired results and making progress towards its objectives.
 Identify areas for improvement: By collecting data and feedback from employees,
customers, suppliers, and other stakeholders, KPLC can identify areas for improvement,
and take action to address any issues.
 Increase efficiency and effectiveness: By continuously improving its strategy, KPLC can
increase its efficiency and effectiveness, and ensure that it is best positioned to succeed in
the market.
  Foster a culture of continuous improvement: By regularly monitoring, evaluating, and
taking corrective action, KPLC can foster a culture of continuous improvement,
encouraging employees to continuously seek out ways to improve the company's
performance.
 Stay ahead of the competition: By continuously monitoring, evaluating, and taking
corrective action, KPLC can stay ahead of the competition, responding quickly to
changes in the market and evolving its strategy to meet the needs of its target customers.

How Kenya Power and Lightening Company relates to DBA 401 course
The strategic plan for KPLC organization in Kenya relates to the DBA 401 course in the
following ways:

 Strategic management: The strategic plan for KPLC organization demonstrates an

application of the principles of strategic management, including the development of a
vision and mission, the identification of objectives, the development of a strategy to
achieve those objectives, and the monitoring, evaluation, and correction of the strategy.
 Business analysis: The strategic plan for KPLC organization requires the analysis of
various internal and external factors that may impact the company's performance, such as
market trends, competitor analysis, customer preferences, and organizational strengths
and weaknesses. This analysis is an important aspect of business analysis and decision-
making.
 Implementation: The strategic plan for KPLC organization outlines a plan for
implementation and execution of the strategy, which is a critical aspect of strategy
development and implementation, and is an important part of the DBA 401 course.
 Evaluation and control: The monitoring, evaluation, and corrective action processes
outlined in the strategic plan for KPLC organization demonstrate the importance of
continuous evaluation and control in the implementation of a strategic plan, which is an
important aspect of the DBA 401 course.