ISSN 2348-1218 (print) International Journal of Interdisciplinary Research and Innovations ISSN 2348-1226 (online) Vol. 9, Issue 2, pp: (18-25), Month: April - June 2021, Available at: www.researchpublish.com
EFFECT OF PROCUREMENT METHODS ON PERFORMANCE OF STATE CORPORATIONS IN KENYA 1
*Gatari Catherine Njoki, 2*Dr. Noor Ismail, PhD, 3*Dr. Anthony Osoro, PhD 1
*PhD Candidate, Jomo Kenyatta University of Agriculture and Technology (JKUAT) 2
*JKUAT, Kenya
3
*JKUAT, Kenya
Abstract: This paper analyses the effect of procurement methods on performance of state corporations in Kenya. The study also assesses the moderating effect of public procurement disposal act enforcement on the relationship between procurement methods and performance of state corporations. The study employed descriptive research design to help in identifying characteristics, frequencies and trends of the study population. This study was anchored on positivist Philosophy. The target population of this study included all 187 registered state corporations in Kenya. The study used a census where all the 187 state corporations were surveyed. To identify the unit of observation, the study purposively picked the head of finance and the head of procurement function in all 187 state corporations in Kenya. This formed 374 respondents. Primary data was the main data for the study which was collected using questionnaires. The collected data was analyzed with the aid of the Statistical Package for Social Sciences (SPSS) Version 26. Descriptive statistics was used to summarize and organize characteristics of a data set collected which was presented in form of means, modes and standard deviations. Then inferential statistics through a regression model was used to test the research hypotheses. The study established that procurement methods had a significantly influence on the performance of state corporations in Kenya. The study recommended that the management of the state corporations ought to ensure compliance with all sections of PPAD Act, of 2015 and public procurement regulations so as to improve their performance. Keywords: Public procurement, procurement method, enforcement, organizational performance, state corporations.
1. INTRODUCTION 1.1 Background of the Study The public procurement act of Kenya requires the public procurement activities in all public entities to be carried out in an free, fair and equitable manner upholding all the public procurement policies and procedures. The PPAD Act was enacted in January 2016 abolishing the earlier Public Procurement and Disposal Act of 2005, and all public organs and public entities within Kenya are obliged to conform to this law. The compliance to this Act is in relation to planning and carrying out procurement, inventory planning, disposal of assets and contract management (PPAD, Act 2015). PPAD, Act main focus is to ensure the public procurement system is well managed so as to contribute to the country’s economic development by maximizing economy, efficiency, transparency and competitiveness Procurement methods are the procedures that public procuring entities use to procure acquire products, consultancies and works (Kiruja, 2017). These methods can be competitive or non-competitive. There is preference of using competitive procurement methods in supplier selection and evaluation because that they tend to promote transparency, economy and efficiency (Wachiuri et al., 2018). Procurement encompasses the whole process of acquiring goods, works or services. It
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