ENVIRONMENTAL IMPACT ASSESSMENT AND PERFORMANCE OF LARGE MANUFACTURING FIRMS IN KENYA
Abstract
Statement of the Problem: Large manufacturing firms are critical to the economic development of a nation and the wellbeing of its citizens. Most of the large manufacturing firms in Kenya have recently recorded a decline in performance.
Purpose of the Study: The purpose of this study was to examine the influence of environmental impact assessment on the performance of large manufacturing firms in Kenya.
Research Methodology: The study applied a mixed research design anchored on positivistic philosophy. The target population was 499 large manufacturing firms in Kenya listed in the Kenya Association of Manufacturers directory. Stratified random sampling was used to select 84 manufacturing firms, from which 336 respondents comprising managers from middle-level and top-level management were drawn. The study used descriptive and inferential statistics to analyze the results with help of SPSS version 28.
Findings: The study found that environmental impact assessment had a significant negative effect on the performance of large manufacturing firms (r = -.516, p = 0.000), explaining 26.6% of the variation in firm performance.
Conclusion: The study concluded that environmental impact assessment negatively affects the performance of large manufacturing firms due to substantial implementation costs, operational disruptions, and resource diversion that strain financial resources, particularly in Kenya's developing economy context.
Recommendations: The study recommends that large manufacturing firms should adopt a phased approach to environmental impact assessment implementation to minimize negative performance effects, while government should develop supportive frameworks including tax incentives and technical assistance programs to reduce implementation burden. Policy makers should establish streamlined regulatory processes that make environmental impact assessment more cost-effective for manufacturing firms.
Keywords: Environmental impact assessment, performance, manufacturing firms, Kenya
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