STRATEGIC FINANCIAL CONTROL STRATEGIES AND PERFORMANCE OF SELECTED TELECOMMUNICATION FIRMS IN KENYA
Abstract
Purpose of the Study: This study investigates the impact of strategic financial control strategies specifically revenue assurance and anti-money laundering (AML) practices on the performance of telecommunication firms in Kenya. These firms operate in a high-risk, innovation-driven environment where revenue leakages and financial crimes can significantly undermine profitability and trust.
Short Introduction of Problem Statement: Kenya’s telecommunications industry has experienced rapid growth and digital transformation, particularly through mobile money platforms. However, these advancements have exposed firms to increasing risks, including fraud, cybercrime, and illicit financial transactions. Despite regulatory interventions, firms continue to suffer from revenue losses and reputational damage due to weak financial controls.
Methodology: The research employed a descriptive survey design with a quantitative approach. Data were collected from 154 management-level employees across Safaricom, Airtel Kenya, and Telkom Kenya using structured questionnaires. Stratified sampling was used to ensure proportional representation. The data was analyzed using SPSS Version 27, employing descriptive and inferential statistics including Pearson correlation and regression analysis.
Results of the Study: Findings revealed that both revenue assurance and AML practices have a statistically significant and positive effect on firm performance. Revenue assurance emerged as a stronger predictor, while AML practices enhanced regulatory compliance, operational transparency, and customer trust.
Conclusion and Policy Recommendations: Telecommunication firms should invest in AI-driven revenue tracking systems and automated AML frameworks. Regulators should enforce industry-wide compliance standards. Strengthening financial control strategies is imperative for resilience and competitive advantage.
Keywords: Revenue assurance, anti-money laundering, strategic financial control, organizational performance, telecommunication, Kenya.
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