Managerial Capabilities and Organizational Performance: A Case Study of Kenya Railways Corporation

The Kenya Railways Corporation has faced significant performance issues due to managerial shortcomings, leading to restructuring and reassignment of long-serving managers. This study explores how managerial capabilities affect the performance of Kenya Railways Corporation. It aims to assess the roles of networking, opportunity sensing, opportunity seizing, and innovation capability in enhancing performance. The research is grounded in Resource-Based View, Agency, and Dynamic Capability theories. A descriptive and explanatory design was used, focusing on 192 employees from finance, procurement, operations, and legal departments. The census sampling technique ensured that all 192 employees were included. Data was collected via questionnaires, which were tested for validity and reliability, then analyzed using SPSS version 2.1 with both descriptive and inferential statistics. Results showed that strong networking, effective opportunity sensing and seizing, and robust innovation capabilities are crucial for improving performance, profitability, and resilience. Despite some differing opinions on their effectiveness, enhancing these capabilities can help Kenya Railways Corporation better respond to market changes and improve overall performance.