Challenges of Implementing Procurement Strategy at the Kenya Power and Lighting Company Limited

Abstract

The study focused on Procurement Function in KPLC within a concept of a multifunctional company. Among strategic procurement studies that have been done, very few have focussed on the implementation aspect. More so, these few ones have laid their focus more on other concepts other than multifunctional concept. This study was designed to fill the gap by emphasizing procurement strategy implementation in a multifunctional concept. It sought to answer the questions: what are the challenges affecting implementation of procurement strategy at the Kenya Power and Lighting Company Limited? Consequently, it proposed to achieve two objectives: to establish the challenges affecting implementation of procurement strategy at the Kenya Power and Lighting Company Limited; and to determine measures to address the challenges of implementation of procurement strategy at the Kenya Power and Lighting Company ltd. The key findings of the study were that Procurement Function in KPLC adopts various practices in implementing its strategies. Among the action plans embedded in the Function include the adherence to the procurement plan, material specification and quality, tender evaluation and management of framework contracts among others. The study established that whilst the practices that the Procurement Function uses to support its strategies, aspects of uncontrollable factors in the environment, inadequate training of staff and resources, substandard and un conforming materials, lack of specifications, unreliable and distant suppliers, long and laborious procurement lead time and reduction and inadequate funds among others were major obstacles to successful implementation of procurement strategy in KPLC. The study is presented in five chapters each with various sections through which the researcher has tried to discuss the above issues. The findings of this study should be understood and evaluated in light of the limitations of the study. This study is especially helpful to KPLC and other similar companies in Kenya. It should be particularly helpful to the company’s strategic team and managers of multifunctional organizations whose responsibilities include formulating and implementing strategies. The study recommends top management to look at the limitations in the procurement processes discussed herein and adopt best practices for policy development. Further research should be directed to the Function’s bidding process for further improvement.