Journal of Investment and Management 2016; 5(5): 82-92 http://www.sciencepublishinggroup.com/j/jim doi: 10.11648/j.jim.20160505.16 ISSN: 2328-7713 (Print); ISSN: 2328-7721 (Online) Effect of Inventory Control Strategies on Inventory Record Accuracy in Kenya Power Company, Nakuru Lilian Tundura, Daniel Wanyoike Department of Procurement and Logistics in the School of Entrepreneurship, Procurement and Management, Jomo Kenyatta University of Agriculture and Technology, Nakuru, Kenya Email address: ltundura@gmail.com (L. Tundura), danwanyoike@gmail.com (D. Wanyoike) To cite this article: Lilian Tundura, Daniel Wanyoike. Effect of Inventory Control Strategies on Inventory Record Accuracy in Kenya Power Company, Nakuru. Journal of Investment and Management. Vol. 5, No. 5, 2016, pp. 82-92. doi: 10.11648/j.jim.20160505.16 Received: August 22, 2016; Accepted: September 21, 2016; Published: September 29, 2016 Abstract: The purpose of this study was to determine the effect of inventory control strategies on inventory record accuracy in Kenya Power Nakuru. The study looked at three inventory control strategies; cycle counting, inventory coding and computerized inventory accuracy. The three variables were individually and collectively related with inventory records accuracy. The study adopted a descriptive survey. The target populations for the study were the employees in Kenya Power Nakuru working in procurement, stores and finance departments. Since there are only 42 employees in the departments, all the employees were involved in the study as respondents. The researcher conducted a pilot study to test for validity and reliability of the research instruments before the actual study. Data was then collected through structured questionnaires that were self-administered by the researcher. Collected data was analyzed both descriptively and inferentially. Descriptive statistics was used to describe the study variables while correlation and regression analysis was used to relate the research variables. Single tailed t-test was used to test the hypotheses in the study. The study established that inventory control practices have significant positive influence on inventory records accuracy. The study recommends that public companies as well as private companies adopt inventory control practices as they are likely to experience enhanced efficiency and effectiveness in inventory records. The study suggests that further study is conducted to assess the role of management in implementing inventory control practices and whether inventory control practices can enhance operational performance of an organization. Keywords: Inventory Control, Inventory Control Strategies, Inventory Record Accuracy 1. Introduction Inventory control is one of the key management areas in organizations. This is because of the internal roles inventory control plays in the organizations such as facilitation of continuous production, smoothening of operations and enhancement of customer service (Singh, 2013). Other than the internal benefits, inventory management is considered by Chief Supply Chain Officer (CSCO) Insights as the core determinant of supply chain management excellence. Another reason why inventory control is considered critical in management is the costs involved its management. According to Service Corps of Retired Executives (2002), inventory management accounts for 45% to 90% of total organizations’ expenses. Organizations hold numerous types of inventories ranging from; raw materials, assembles, sub-assemblies, semi processed materials, finished products, and consumables (CSCOInsight, 2011). The type of inventory held by an organization depends on the nature of the organization; for service organizations, high percentage of inventory is composed of consumables, for processing and manufacturing, raw and semi processed inputs while for assembly organizations, sub-assemblies (Service Corps of Retired Executives, 2002; Zipkin, 2000). Inventories are held to ensure continuity in organizational processes, to help in production and to be sold in case of finished products (Kiisler, 2014). Based on the reasons why inventories are held, Zipkin (2000) categorized inventories into; cycle inventory; held to satisfy predicted demand between replenishments, safety inventory; held to take care of uncertainties, speculative demand; held to take advantage of some future situation in the