STRATEGIC PLANNING AND PERFORMANCE OF THE AIRLINE INDUSTRY IN KENYA
Keywords:
Strategic Planning, Resource Allocation, Goal Setting, Performance of the Airline IndustryAbstract
The airline industry plays a crucial role in Kenya’s economic development by facilitating domestic and international trade, boosting tourism, and enhancing connectivity. Kenya is a key aviation hub in Africa, with Jomo Kenyatta International Airport (JKIA) serving as a major transit point for regional and international flights. According to the Kenya Civil Aviation Authority (KCAA), the aviation sector contributes approximately 1.1% to Kenya’s GDP and supports over 137,000 jobs directly and indirectly. The general objective of this study is to investigate the effect of strategic planning on performance of the airline industry in Kenya. Specifically, the study sought to assess the effect of resource allocation on performance of the airline industry in Kenya and to establish the effect of goal setting on performance of the airline industry in Kenya. This study used descriptive research design. This study focused on airline industry in Kenya. According to Kenya airports authority (2024) there are 8 domestic airline companies in Kenya. These domestic airline companies in Kenya include; Kenya Airways, Jambojet, Fly540, Safarilink, Skyward Express, Bluesky Aviation, Jetways Airlines and Renegade Air. This study targeted management employees working in these companies since they are in a better position to provide information on strategic orientation and organization performance. The unit of analysis was therefore 8 airline companies in Kenya while the unit of observation was 200 management employees working with the 8 airline companies in Kenya. The study used Krejcie and Morgan (1970) formula to arrive at the sample size. The study sample size was therefore 133 employees. This study used a questionnaire to collect primary data. Descriptive statistics such as frequency distribution, mean (measure of dispersion), standard deviation, and percentages were used. Inferential data analysis was conducted by use of Pearson correlation coefficient, and multiple regression analysis. The relationship between the study variables were tested using multivariate regression models. The study results were presented through use of tables and figures. The study concludes that resource allocation has a positive and significant effect on performance of the airline industry in Kenya. The study also concludes that goal setting has a positive and significant effect on performance of the airline industry in Kenya. Based on the findings, the study recommends that the management of airline industry in Kenya should prioritize strategic resource allocation towards technology and fleet modernization. By investing in more fuel-efficient aircraft and advanced digital systems for operations, booking, and customer service, airlines can reduce operational costs, enhance reliability, and improve the overall customer experience.
Key Words: Strategic Planning, Resource Allocation, Goal Setting, Performance of the Airline Industry
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