Factors Affecting Payment of Suppliers in the Public Sector

Abstract

The research study attempted to fill the gap between available procurement procedures, by identifying how they are applied by the procuring entity and how such procedures affect the vendor payment after the delivery of goods, works and services, as perceived by interested parties in Kenya. A sample of questionnaire was given to respondents to collect data from the procurement staffs who are often involved in procurement procedures on vendor payment. A semi-structured questionnaire was given to procurement officers in the public sector. Qualitative data was analyzed by coding and organizing it into themes and concepts and quantitative data was also analyzed using statistical packages, which yield descriptive and inferential statistics. Data was presented using mean and standard deviation where necessary. Pilot test was also conducted for the purpose of ensuring the research instrument is reliable and valid. The analysis was done using statistical package for social sciences (spss) version 17.The findings of this study show that for effective supplier payment there must be accuracy in the department and suppliers must make sure they give their full details and the type of relationship that exists between the department and the suppliers and also the practices of the government. Supplier payment has been facing the following challenges: procurement regulations, urgency of transactions and ethics. These factors directly influence the relationship between suppliers and buyers so the Government has a big role to play in the procurement process so as to satisfy customers. This research was to benefit the public service and donor community to make prudent decision in future. The researcher therefore recommends that more research to be carried out on management style, capacity of personnel and procurement regulations to make the supply chain process effective