Exploring The Concept of Sustainability Accounting Practices and Its Influence on Financial Performance of Businesses in Turkana County, Kenya

Jared Okello Otieno, Solomon Ngahu

Abstract: Background: This paper looks at how sustainability accounting practices affect the financial performance of companies in Turkana County, Kenya-a geographically vulnerable area being a dry land with a high ecological and operational risk to businesses. As sustainability accounting continues to become an important strategic tool in improving transparency, resource management and long-term resilience, the research aimed to evaluate the effectiveness of environmental reporting, resource efficiency tracking, and sustainability standards compliance with financial performance of business. Methodology: A mixed-methods approach was used, with the survey of 222 businesses being identified by the use of the stratified random sampling technique, but supplemented by the key informant interviews and case studies. The analysis of the quantitative data employed correlation and regression methodology, whereas the qualitative data were analyzed through the thematic analysis to enhance the results interpretation. Results: Correlation results indicate that environmental reporting practices have a moderate and statistically significant positive relationship with financial performance (r = 0.58, p = 0.001). Resource efficiency tracking also shows a positive, though weaker, significant relationship (r = 0.42, p = 0.008), suggesting that firms that track and optimize resource use gain gradual financial benefits. Compliance with sustainability standards further exhibits a significant positive association with financial performance (r = 0.55, p = 0.003), highlighting the value of regulatory and industry alignment. Regression analysis confirms sustainability practice adoption as a strong predictor of business financial performance. A one-unit increase in sustainability adoption leads to a 0.68-unit increase in financial performance (? = 0.68, t = 5.67, p < 0.001), indicating substantial financial benefits associated with integrating sustainability into business operations. Conclusions and Recommendations: The study concludes that sustainability accounting enhances profitability, operational efficiency, and competitiveness. It recommends strengthening environmental reporting systems, promoting resource-efficiency investments, and enhancing regulatory incentives to accelerate sustainability adoption among businesses in Turkana County.

Keywords: sustainability accounting, financial performance, environmental reporting, resource efficiency, Turkana County

How to Cite?: Jared Okello Otieno, Solomon Ngahu, "Exploring The Concept of Sustainability Accounting Practices and Its Influence on Financial Performance of Businesses in Turkana County, Kenya", Volume 15 Issue 1, January 2026, International Journal of Science and Research (IJSR), Pages: 740-748, https://www.ijsr.net/getabstract.php?paperid=SR26105200403, DOI: https://dx.doi.org/10.21275/SR26105200403