Abstract:
Waste management companies in Nairobi County face persistent challenges such as
high capital expenditures, weak revenue streams, and fragmented regulations, which
threaten their operational sustainability and hinder their contribution to the circular
economy. Despite their importance in promoting environmental conservation and urban
resilience, limited empirical research has been conducted to establish how financial
management practices shape their performance. This study investigated the effect of
working capital management, cost management, and capital budgeting on the
operational performance of waste management companies, focusing on Taka Taka
Solutions, while also examining the moderating influence of environmental regulations.
The study adopted a descriptive correlational research design targeting 350 employees,
from which a stratified random sample of 203 respondents was drawn across
managerial, technical, and support levels. Primary data were collected using structured
questionnaires and analyzed through descriptive statistics, correlation, multiple
regression, and moderated regression models. The findings established that financial
management practices significantly affect operational performance and that the
regulatory environment moderates these relationships, either strengthening or
constraining their impact. The study concludes that effective financial management
practices, when aligned with supportive regulatory frameworks, enhance efficiency,
sustainability, and competitiveness of waste management companies. It recommends
strengthening working capital systems, institutionalizing rigorous cost management
frameworks, and adopting strategic capital budgeting approaches, while policymakers
should provide enabling regulations and incentives to improve sectoral performance
and sustainability.
