ASSET MANAGEMENT AND PERFORMANCE OF NON-ALCOHOLIC BEVERAGE SME'S IN NAIROBI COUNTY, KENYA: A STUDY OF HUMAN RESOURCE MANAGEMENT PRACTICES

Abstract

Asset management refers to the systematic use of resources to maximize their value and usefulness. This study examined human resources as a critical organizational asset by exploring the effects of three human resource management practices (HRMP)—employee training, productivity evaluation, and workforce stability on the performance of small and medium-sized enterprises (SMEs) in the non-alcoholic beverages industry in Nairobi. Using a mixed-methods design, data were collected from ten SMEs through surveys and semi-structured interviews. Regression analysis revealed that employee training had the most significant effect on profitability and return on investment (ROI). Productivity evaluation and workforce stability also showed notable positive impacts on SME performance. Investment in employee upskilling enhanced competence, minimized errors and defects, reduced costs, and improved profit margins. Similarly, productivity evaluation through the use of key performance indicators (KPIs), quality measurement, and corrective feedback was linked to higher throughput, better first-pass yield, and reduced downtime. Although workforce stability showed a smaller effect, it remained valuable as it preserved organizational knowledge, reduced recruitment and onboarding costs, and ensured operational consistency, especially in resource-constrained contexts. Interview findings reinforced the quantitative results, emphasizing the importance of structured training programs, team-based KPI boards, and employee loyalty mechanisms to reduce attrition. Overall, the study suggests that low-cost HRM interventions can significantly enhance financial performance and resource efficiency among SMEs. For SME owners and managers, the implications are clear: invest in basic employee training, establish measurable productivity systems, and maintain mechanisms that retain skilled staff. Policymakers and capacity-building programs can leverage these insights to strengthen SME competitiveness. Despite limitations related to sample size and self-reported data, the findings provide practical recommendations for improving profitability, ROI, and organizational resilience in Nairobi’s non-alcoholic beverage sector.