FINANCIAL RESTRUCTURING STRATEGIES AND PERFORMANCE OF HUMAN CONSUMPTION SALT MINING COMPANIES IN KENYA
Abstract
Purpose of Study: This study sought to assess the effect of Financial Restructuring Strategies on the performance of human consumption Salt mining companies in Kenya.
Problem Statement: The performance of Kenya’s human consumption salt mining companies has remained below expectations despite increasing demand for salt products and ongoing sectoral reforms. The mining and quarrying sector recorded a contraction of 11.1% in the third quarter of 2024, signaling declining productivity and reduced sectoral contribution to the national economy.
Methodology: The study employed a descriptive cross-sectional research design. The target population comprised all five human consumption salt mining companies in Kenya, namely Ken Salt Ltd, Krystalline Limited, Malindi Salt Works Limited, Kurawa Industries, and KEMU Salt Packers Production Ltd. Data was analyzed using SPSS Version 27, applying both descriptive and inferential statistics, including correlation and regression analysis.
Result: Regression analysis revealed that financial restructuring strategies had a positive and statistically significant effect on performance (β=0.617, p=0.000). The coefficient of determination (R²) showed that financial restructuring strategies explained 33.9% of the variations in performance.
Recommendation: Salt mining companies in Kenya should promote financial restructuring strategies such as debt management, cost reduction and capital allocation to strategic investments in the face of changing business environment. In addition, the government of Kenya and the regulators of human consumption Salt mining companies in Kenya should establish an enabling environment, through measures such as tax incentives, favorable financial policies, and provision of subsidies, that would encourage restructuring activities.
Keywords: Financial Restructuring Strategies, Debt Management, Cost Optimization, Capital Allocation, Performance, Human Consumption Salt Mining Companies, Kenya
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