Implementation of the public procurement and disposal act, (2005) -Kenya and organizational performance
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Date
2015Author
Getuno, PM
Awino, ZB
Ngugi, PK
Mwaura, F
Language
enMetadata
Show full item recordAbstract
Public Procurement is one of the major objectives of any government striving to deliver
goods and services to its people. The government is a major purchaser of goods and
services that entails the application of colossal amounts of money running into billions
of shillings and if the procurement process is not transparent and efficient, it results in
the loss of taxpayers’ money which leads to poverty, insecurity, poor infrastructure,
inadequate health services among others. Unfortunately the foregoing scenario has
characterized public procurement in Kenya over the years. In an attempt to address
these weaknesses, the Kenyan Government enacted the Public Procurement & Disposal
Act (PPDA, 2005). Since the Act was put in place, little is available to explain the effect
the implementation has had in improving the performance of public entities in delivery
of services to Kenyans. The study therefore sought to determine the effect of the PPDA,
(2005) implementation on performance of Kenyan state corporations. Explanatory
survey design was adopted with a target population of 187 state corporations as per the
list of the Taskforce on Parastatal Reforms (2013). The sample size was 125 state
corporations and the study managed to get respondents from 112 corporations drawn
from the five functional categories. Both primary and secondary data were used for
analysis in the study. Primary data was obtained from the information in the
questionnaires distributed to procurement practitioners and interview guides from the
accounting officers whereas the secondary data was retrieved from existing reports of
the PPOA website. Data collected was analyzed using descriptive statistics and multiple
regressions. The findings of the study indicated a significant effect of the PPDA, (2005)
implementation on performance of state corporations. Enforcement moderated the
relationship between the PPDA, (2005) implementation and organizational
performance. The study's limitation was the population as it only targeted procurement
practitioners and Accounting officers in state corporations. The research thus
recommends future studies to widen data coverage by involving mainstream
government departments, county governments and service providers. Findings also
indicated that enforcement of implementation of the rules increased levels of
compliance; however, results also indicated that the compliance audits conducted by the
oversight authority were very low. The implication is that policy makers should focus
more on enforcement as it is an incentive for state corporations to increase
implementation and compliance thus improving their performance. Study also revealed
that e-procurement system had not been significantly embraced yet it highly
contributed to transparency of the procurement process and increased efficiency. Policy
makers in government should lay more emphasize in encouraging state corporations to
invest in the e-procurement solution.
Citation
Getuno PM, Awino ZB, Ngugi PK, Mwaura F (2015). Implementation of The Public Procurement And Disposal Act, (2005)." DBA Africa Management Review. 2015;5(1):75-93.Publisher
University of Nairobi