Strategic Procurement Practices and Performance of County Governments in Eastern and Rift Valley Regions, Kenya

Faith Wanja Murithi; Samson Paul Nyangau

doi:10.61108/ijsshr.v3i2.190

Authors

Faith Wanja Murithi Scholar ,Jomo Kenyatta University of Agriculture and Technology
Dr. Samson Paul Nyangau Senior Lecturer,Jomo Kenyatta University of Agriculture and Technology

DOI:

https://doi.org/10.61108/ijsshr.v3i2.190

Keywords:

Strategic Procurement Practices, Strategic Negotiation, Strategic Sourcing, Strategic Contract Management, Strategic Technology Adoption, Performance of County Governments

Abstract

Today’s business environment is characterized by increasing uncertainties. Strategic Procurement has emerged as an important new approach for enterprises to achieve profit and market share objectives improved risk management. Now, more than ever, the world population is aware of the negative effects caused by poor management of products and services in organizations, including county governments. In today's highly competitive market, the demand for superior goods and services is the most important reality for companies to survive in an ever-expanding global market. The primary goal of this study is to determine the influence of strategic procurement practices on the performance of county governments in Kenya. This research was based on the following objectives: strategic negotiation, strategic sourcing, strategic contract management and strategic technology adoption on the performance of county governments in Kenya. The negotiation theory, strategic choice theory, stakeholder’s theory, and technology acceptance theory were studied and used as its theoretical foundations. The study employed a cross-sectional survey approach and mainly concentrate on 22 county governments in Eastern and Rift Valley Regions in Kenya as listed by County Government Act, 2012 and targeted Supply Chain Managers, Finance Managers, Procurement Officers, Store Officers and Accountants in each of the county governments. In order to meet the research objectives, the respondents were chosen at random. The sampling frame for this study included all the 22 county governments in Eastern and Rift Valley Regions in Kenya as listed by County Government Act, 2012. The county governments were employed as unit of analysis, while the Supply Chain Managers, Finance Managers, Procurement Officers, Store Officers and Accountants were employed as the unit of observation. The pilot study targeted 11 respondents which is 10% of the final study sample size, with respondents chosen at random in the procurement and finance departments in Nairobi and Kiambu County Governments. The primary data was collected through a self-administered questionnaire that had both open and closed ended questions, designed to obtain definite responses. Statistical Package for the Social Sciences (SPSS version 28) was used to analyze the data and present the variables through coding and summarizing the responses of all the respondents and the analyzed data was presented in form of tables. The Cronbach’s Alpha value was greater than 0.7 which indicated that the questionnaire met the minimum acceptable threshold. The study findings showed that strategic procurement management practices namely strategic negotiation, strategic sourcing, strategic contract management and strategic technology adoption significantly influence the performance of county governments in Kenya. The study concluded that performance was expected to grow for every unit increase in strategic procurement management practices. The study further recommends that county governments should prioritize negotiating better pricing, terms, and minimize unnecessary expenses. To achieve this, they can implement robust procurement processes to prevent fraud and ensure transparency, potentially saving millions of pounds annually. This will ensure improved strategic procurement management practices and improve performance of county governments in the Eastern and Rift-Valley regions in Kenya.

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