Influence of Leadership Styles on Performance of Transport Parastatals in Kenya

Abstract

Transport parastatals in Kenya continue to suffer from inefficiencies, financial mismanagement, and governance lapses, largely attributed to weak and ineffective leadership practices. Despite the critical role of leadership styles in shaping organizational culture, accountability, and innovation, many parastatals remain entrenched in autocratic and politically driven approaches that undermine performance and erode public trust. The purpose of this study was to establish the influence of leadership styles on the performance of transport parastatals in Kenya. The study was guided by the Full Range Leadership Theory and Agency Theory, which emphasize the importance of transformational, transactional, and participative leadership in enhancing accountability and organizational outcomes. A descriptive explanatory research design was adopted, targeting a population of 104 managers drawn from 13 transport parastatals. Stratified random sampling was applied, and Yamane’s formula was used to determine a representative sample of 83 respondents, comprising 35 top managers, 28 middle-level managers, and 20 supervisory managers. Data were collected using structured questionnaires, while descriptive statistics, correlation analysis, and multiple regression were employed for data analysis. Correlation results showed a strong positive and significant relationship between leadership styles and performance (r = 0.646, p < 0.05). Regression findings revealed that leadership styles significantly predicted organizational performance (β = 0.421, p < 0.05). The study concludes that leadership style is a critical determinant of performance in transport parastatals. It recommends institutionalizing transformational and democratic leadership development programs, while also strengthening leadership accountability frameworks to enhance efficiency, transparency, and service delivery.