Determinants of Implementation of the Public Procurement Preference and Reservation Scheme in Tana-River County

Abstract

Public procurement is estimated to account for a huge percentage of government expenditure. For instance, it is estimated to account for 12% of the GDP of OECD countries. This huge expenditure presents opportunity for governments to use public procurement to promote local industry and disadvantaged groups in an economy; through the application of preference and reservation schemes in public procurement. In Kenya, reports indicate that public procuring entities have not fully implemented the preference and reservation scheme; that requires them to procure 30% of their needs from enterprises owned by youth, women and persons living with disability (PWDs). This study therefore sought to examine the effect of: Access to Funding; and Access to Procurement information; on the implementation of the preference and reservation scheme in Kenya. The study collected data from 28 procuring entities in the County of Tana River. The study established that Access to funding does not have significant and substantial effect on implementation of the preference and reservation scheme, while access to procurement information has significant and substantial effect on implementation of the preference and reservation scheme in the County of Tana River in Kenya. The study recommends setting aside more lucrative tenders for the special interest groups to stimulate interest in the preference and reservation scheme. The study further recommends adoption of strategies to enable publicizing procurement information on social media. These have potential to enhance the Implementation of the Preference and Reservation Scheme. Further, the study invites researchers to examine whether the low value of procurement contracts set aside for the youth affects the implementation of the preference and reservation scheme in Kenya.