Public Procurement Policy Compliance and Performance of Nairobi City County

Abstract

This study aimed to investigate the effects of public procurement policy compliance on performance within Nairobi City County, Kenya. Guided by institutional theory, agency theory, and resource-based theory, the research specifically focuses on two key objectives: one, determining the levels of public procurement policy compliance at Nairobi City County, and two, evaluating the impact of public procurement policy compliance on overall performance within the county. Data for the study were collected through questionnaires administered to procurement managers in Nairobi County. Findings reveal varying levels of compliance with public procurement policies in Nairobi City County. While the adoption of Access to Government Procurement Opportunities (AGPO) laws received an impressive 80% agreement among respondents, gaps were identified in the adoption of the Public Procurement and Asset Disposal Act and compliance with Public Procurement Oversight Authority (PPOA) requirements. Regression analysis indicated that 62% of the variability in performance is explained by the considered compliance variables. The ANOVA results further support the model's overall significance at a p-value (p < 0.001). This means that compliance with the Public Procurement Oversight Authority (PPOA), Procurement Legal/Regulatory Framework, as well as Moral Values and Policies and Procurement Professionalism and Ethical Code of Conduct promote performance of the Nairobi City County. The study underscores the need for a comprehensive approach to policy adherence to ensure a robust and effective procurement environment and high performance. The study established that there is interconnection between public procurement policy compliance and overall performance of the county. The study also concluded that addressing identified gaps in compliance, particularly in ethical considerations and professionalism, is essential for sustained and comprehensive performance improvement within Nairobi City County. The inquiry recommendations include targeted training programs to enhance awareness of procurement policies, regular assessments of procurement practices, and the integration of corporate social responsibility (CSR) principles to foster a holistic approach to compliance.