Effects of Procurement Regulatory Practices on Performance of Supply Chain Department in Machakos County, Kenya

Abstract

Machakos government ministries are characterized by increasing expenses, delayed service delivery, delays in the procurement of products, works, and services, low-quality items, corruption, and waste in the supply chain management process. During the 2014/2015 financial year, several Ministries, Departments, and Commissions with funding incurred spending of Ksh 435, 690, 489, of which the value for money could not be determined, resulting in wastages. The majority of the waste happened during the procurement process, according to the Auditor General's Report for the fiscal year 2014/2015. The overall goal of this research was to determine the effect of regulatory procurement procedures on the performance of the supply chain department in Machakos County. The specific objectives were: to determine the effect tendering process, procurement planning, supplier selection procedure, and professionalism on procurement performance in Machakos County. The legitimacy theory, agency theory, Institutional Theory, and transaction cost theory are the major theories underlying this study. A descriptive research-based study was used. This study was conducted in Machakos County. The study's target population comprised 40 administrators from various divisions, 30 directors, and 18 chief county officers, all of whom were recruited from inside the county. Primary data from the respondents was collected via the use of questionnaires in this research. Descriptive statistics were used to analyze quantitative data, which were then displayed in the form of graphs, tables, and charts. The mean, mode, and standard deviation were used to calculate the descriptive statistics. The content analysis method was used to examine qualitative information. Also, the SPSS Software version 24 was used for data analysis. The association between the independent and dependent variables was determined using multiple regression analysis. According to the study results, the tendering process was aided and supported by the Standard Tender Documents from the Public Procurement Officers Association (PPOA). The finding further gathered that proper procurement planning contributes to the success of service delivery. The results also indicated that corruption influences suppliers' selection procedure and management of suppliers. The respondents indicated that the absence of ongoing professional training in the procurement function has a negative impact on procurement performance. According to the study's summary, the researchers came to the conclusion that there was a positive and statistically significant association between tendering processes and the supply chain department in Machakos County. In order to guarantee effective use of the available assets and capacity, the study advises that the County administration, in collaboration with the national government, should work together to ensure proper utilization of the available assets and capacity in the county. As a result, the report recommends that more research be conducted in order to determine the sources of 48.4 percent of the county's financial performance.