Supply chain factors and delivery of power generation projects at the Kenya electricity generating company limited

Abstract

The purpose of the study was to determine supply chain factors that influence the delivery of power generation projects in KenGen. The research design was a case study of Kenya Electricity Generating Company (KenGen). The study used both primary and secondary data to meet its objectives. Collection of primary data was through the use of questionnaire. The researcher used descriptive statistics and principle component factor analysis to analyze quantitative data. For qualitative data, the researcher used content analysis. From the study findings, the researcher established that procurement had a high influence on delivery of power generation projects in KenGen. It was also revealed that transportation and quality control has a big impact on delivery of power generation projects in KenGen as the company was found to use uneconomical means of transport and suffered from lack of systems for due diligence and benchmarking. The study concludes that materials or inventory control as well as materials handling and storage influenced delivery of power generation projects in KenGen. The study further concludes that order processing and production planning greatly influenced delivery of power generation projects in KenGen as there were cases of increased variation orders, delay in order processing and delays in manufacturing of equipment and material. The study recommends that training is required for the users of procured equipment and materials. Independent due diligence should also be carried out before awarding contracts to potential contractors. In addition, proper planning of projects and exhaustive perusal of procurement documents will enable overcome hurdles experienced during the procurement stage.