Risk Mitigation Strategies and Supply Chain Performance of Petroleum Marketing Firms in Kisumu County, Kenya

Walela Isaac Karani and Perris Chege
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Walela Isaac Karani: Department of Management Science, School of Business, Economics and Tourism, Kenyatta University, Kenya.
Perris Chege: Department of Management Science, School of Business, Economics and Tourism, Kenyatta University, Kenya.

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Abstract: Supply chain performance is important for petroleum marketing firms (PMFs) since it can strongly impact the profitability and customer satisfaction. However, Kisumu County imports 100% of its crude oil, making it vulnerable to supply chain disruptions caused by increasing complexities in the global supply markets. The investigation assessed the influence of risk mitigation strategies (demand, operational, supply and financial risk mitigation strategies) on Kisumu County petroleum marketing firms' supply chain performance, Kenya. This investigation was based on the Resource-Based View, Agency, and Supply Chain Risk Management Theory. The target population consisted of the 47 registered PMFs that have a presence in Kisumu County, according to the Ministry of Trade, Kisumu County. A census of all the 47 registered PMFs in Kisumu County was done. Questionnaires were utilised to obtain primary data and contained both structured and unstructured questions, the target respondents being 99 senior managers from 47 registered PMFs. Descriptive analysis, correlation analysis and Multiple Regression Analysis (MRA) were used to analyse data collected. Findings revealed that operational risk mitigation strategies positively (β = 0.377) and significantly (ρ = 0.000) affect the firm's supply chain performance. Financial risk mitigation strategies negatively (β = -0.189) and significantly (ρ = 0.018) affect the supply chain performance of petroleum marketing firms in Kisumu County, Kenya. The results suggest that firms that successfully address supply risks—like fuel availability disruptions, procurement delays, or variations in supplier reliability—tend to enjoy greater stability and performance in their supply chains. The study recommends that these firms shift their focus toward enhancing other aspects of supply chain management that have a more pronounced impact. In particular, building stronger relationships with suppliers and customers should be a top priority to boost operational efficiency and cut costs. This can be done through strategic collaboration, like joint planning, open communication, and shared risk management practices.

Date: 2025-10-29
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Published in Asian Basic and Applied Research Journal, 2025, 7 (1), pp.570-583

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