American International Journal of Contemporary Research Vol. 3 No. 9; September 2013 88 An Assessment of the Effect of Prepaid Service Transition in Electricity Bill Payment on KP Customers, a Survey of Kenya Power, West Kenya Kisumu Carolyne Nyanchama Miyogo Customer Relations Officer Kenya Power Company P.O Box 408-40200, Kisii, West Kenya Region Nyanamba, Steve Ondieki Lecturer Kisii University P.O Box 408-40200, Kisii, Kenya. Nyangweso, Gaster Nashappi Lecturer Rongo University College P.O Box 4274-40200, Kisii , Kenya. Abstract The purposes of the study were to determine employees and clients’ response to the ongoing service transition from post-paid to pre-paid electricity bill payment, to assess key human resource requirements needed for successful transition from post-paid to pre-paid electricity bill payment and to investigate the KP’s organizational strategies adopted towards the change. Stratified random sampling technique was used. Questionnaires were used as data collection instrument. The findings show that customers have embraced the pre paid billing system and that prepaid billing system has brought with it some advantages like making them more careful with their consumption. The most influential human resource aspects necessary in promoting a successful transition from post paid to prepaid electricity bill payment was having appropriate equipment for installing the prepaid meters. The study concluded that customers have embraced the prepaid billing system. Key words: Post-paid, Pre-paid, bill, customer 1. Introduction A consumer is a very important person in any organization. Of all economic activities, consumer spending is by far the most dominant contributor to economic growth (Fornell et al., 2010). They further point out that if consumer spending slows, the economy slows; if consumer spending drops even marginally, the economy is likely to contract. Besides, they also claim that for managers, whether they are in production, finance, or marketing, the implications of consumer spending levels also affect the availability and magnitude of the resources themselves. Accordingly, it is critical for marketers to try to find out in advance what their customers’ expectations are, because a failure to meet or exceed these expectations could lead to dissatisfaction and defection (Chezy and Itamar, 2007). Baker (2002) suggests that sellers must seek to establish the precise nature of their intended customers' needs so that they can devise products and services which will match the needs as closely as possible and to enable them communicate this information effectively to their intended audience through the internet. He argues that stimulus is needed to make a buyer aware of a need and so initiate consideration of possible means of satisfying that need. Hence marketers must use different techniques and procedures to disaggregate demand into meaningful market that will enable them position their products so that it will at least attract the intended buyer’s attention. Development of ‘human resources’ in both public and private sector organizations has become critical in an increasingly knowledge-based globalizing economy (Analoui, 2007). In particular, human resource capacity building for public service delivery has been recognized by developed, transition, and developing economies under the notion of the ‘new public management’ reform.