FLEET MANAGEMENT STRATEGIES AND PROFITABILITY OF TRANSPORT COMPANIES IN KENYA

Abstract

This study aimed to evaluate the effect of fleet management strategies on the profitability of transport companies in Kenya, focusing on a case study of Motrex Limited. Aimed to determine the effect of intelligent fleet management systems, and vehicle financing, on the profitability of Motrex Limited, Kenya. This study was anchored on the Resource-Based View Theory. The survey utilized a descriptive research design for the investigation. The target population of 1,102 employees. A stratified sampling technique was deployed. To determine the sample size, the study employed Yamane's formula with a 95% confidence level. The sample size of the study was 400 respondents. A closed questionnaire was used to gather the study's initial data. The effect of Intelligent Fleet Management Systems on the operational performance of Motrex Kenya Limited’s transport business was ascertained using a regression model. Descriptive statistics, such as standard deviations, means, frequencies, and percentages, were employed to analyze the quantitative data. Additionally, inferential statistics such as multiple linear regression and correlation analysis were performed to establish the relationship between the study variables using SPSS version 26. From the study findings, it was revealed that the R square value was determined to be 0. 723 indicating the proportion of the variance in the dependent variable that is predictable from the independent variable(s). An R² of 0.723 implies that approximately 72.3% of the variance in the profitability of Motrex Limited can be explained by the model. This value measures the strength and direction of the linear relationship between the variables. An R value of 0.834 suggests a strong positive correlation between the dependent and independent variables. it is recommended that Motrex Kenya Limited and similar players in the transport industry. By doing so, the company can further reduce financial losses associated with accidents and maintenance issues while promoting safer driving habits among its drivers.