Strategic Sourcing and Performance of Lake Region Economic Bloc, Kenya

Abstract

The devolved governments in Kenya undertake projects that make up over 50% of government spending and are important to the economy. To improve the performance of projects and efficiency in service delivery, Kenyan county governments commonly award bids using strategic sourcing. However, despite the adoption of strategic sourcing, the performance of devolved systems of government remains poor. The general objective of this study was to determine the effect of strategic sourcing on performance of devolved systems of government in the Lake Region Economic Bloc, Kenya. The specific objectives were to establish the effect of supplier relationship management, market research, analytics, and multiple sourcing on the performance of devolved systems of government in the Lake Region Economic Bloc, Kenya. The study is significant to the administration of County governments in the Lake Region Economic Bloc, the policy makers as well as other researchers and academicians. The study adopted a cross sectional research design. The target population of the study was all the 47 county governments in Kenya, which are categorized into 6 regional blocs. The target population of the study was all the 47 county governments in Kenya, which are categorized into 6 regional blocs. The respondents included heads of departments in finance, procurement, public relations and information and communication technology as well as their assistants in 14 Counties in the Lake Region Economic Bloc (LREB). A semi-structure questionnaire was used in the collection of data. Data was analyzed using qualitative data and quantitative methods. Qualitative data was analyzed using content analysis and the results were presented in a narrative form. Descriptive and inferential statistics were used in analyzing quantitative data with the help of the Statistical Package for Social Sciences (SPSS version 25) statistical software. Quantitative results were presented in the form of tables and figures. The study found that supplier relationship management has a positive and significant effect on performance in devolved systems of government in the Lake Region Economic Bloc, Kenya. The study also established that market research has positive and significant effect on performance in devolved systems of government in the Lake Region Economic Bloc, Kenya. The study further revealed that analytics has positive and significant effect on performance in devolved systems of government in the Lake Region Economic Bloc, Kenya. Also, the study found that multiple sourcing has positive and significant effect on performance in devolved systems of government in the Lake Region Economic Bloc, Kenya. The study recommends that County government should develop training programs and workshops for government procurement officers and suppliers to enhance their understanding of procurement processes, compliance requirements, and best practices. County governments should regularly update market information related to various goods and services required by the government. In addition, County governments should create a dedicated analytics department or unit within the government structure to focus on data collection, analysis, and interpretation. In addition, County governments should monitor supplier performance regularly and use data-driven insights to make decisions about contract renewals or terminations