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FACTORS HINDERING EFFECTIVE PROCUREMENT: A CASE STUDY OF WAJIR

CONTY, KENYA

BY

ABDIFATAH MUHUMED HASSAN

BUS-4-2506-18

A RESEARCH PROJECT SUBMITTED TO THE SCHOOL OF BUSINESS IN PARTIAL


FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF THE BACHELOR
OF COMMERCE OF GRETSA UNIVERSITY

OCTOBER 2019
DECLARATION

This research project is my original work and has not been presented for award of a degree or for
any similar purpose in any other institution.

Signature: ___________________ Date:__________________

Abdifatah Muhumed Hassan

BUS-4-2506-18

Supervisor: This research project has been submitted with my approval as University supervisor

Signature: ___________________ Date: ___________________


Madam Fridah Gathure

Lecturer, School of Business

Gretsa University

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TABLE OF CONTENTS

DECLARATION ................................................................................................................................. i
LIST OF TABLES .............................................................................................................................iv
LIST OF FIGURE .............................................................................................................................. v
ABBREVIATION AND ACCRONYMS .......................................................................................vi
OPERATIONAL DEFINITION OF TERMS..............................................................................vii
ABSTRACT ................................................................................................................................. viii
CHAPTER ONE: INTRODUCTION ............................................................................................. 1
1.1 Background to the study............................................................................................................. 1
1.2 Statement of the Problem ........................................................................................................... 2
1.3 Purpose of the Study................................................................................................................... 3
1.4 Conceptual Framework .............................................................................................................. 4
1.5 Objectives of the Study .............................................................................................................. 5
1.5.1General Objective ................................................................................................................. 5
1.5.2 Specific Objectives .............................................................................................................. 5
1.6 Research Questions .................................................................................................................... 5
1.7 Significance of the Study ........................................................................................................... 5
1.8 Scope of the Study ...................................................................................................................... 6
1.9 Limitation of the Study .............................................................................................................. 6
CHAPTER TWO: LITERATURE REVIEW................................................................................ 7
2.0 Introduction ................................................................................................................................. 7
2.1 Corruption and Procurement ...................................................................................................... 7
2.2 Political Changes and Procurement ........................................................................................... 8
2.3 Technological Advances ............................................................................................................ 9
2.4 Theoretical Framework .............................................................................................................. 9
2.4.1 Institutional Theory ............................................................................................................. 9
2.5 Research Gap ............................................................................................................................ 10
CHAPTER THREE: RESEARCH METHODOLOGY ............................................................ 11
3.0 Introduction ............................................................................................................................... 11
3.1 Research Design ....................................................................................................................... 11
3.2 Study Area................................................................................................................................. 11

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3.3 Target Population ..................................................................................................................... 11
3.4 Sampling Technique ................................................................................................................. 12
3.5 Sample Size ............................................................................................................................... 12
3.6 Research Instruments ............................................................................................................... 12
3.7 Reliability and Validity of Research Instruments................................................................... 12
3.8 Data Collection Technique....................................................................................................... 12
3.9 Data Analysis and Presentation ............................................................................................... 13
3.10 Logical and Ethical Consideration ........................................................................................ 13
CHAPTER FOUR: DATA ANALYSIS AND PRESENTATION ............................................ 14
4.1 Introduction ............................................................................................................................... 14
4.2 Participants Response ............................................................................................................... 14
4.3 Gender ....................................................................................................................................... 14
4.4 Age Bracket............................................................................................................................... 15
4.5 Respondents Locality ............................................................................................................... 15
4.6 Service Delivery ....................................................................................................................... 15
4.7 Regression Analysis ................................................................................................................. 16
4.8 ANOVAa................................................................................................................................... 17
4.8.1 Corruption and Procurement ............................................................................................. 17
4.8.2 Political changes and Procurement ................................................................................... 18
4.8.3 Technological advancement and procurement................................................................. 19
4.10 Coefficient of determination .................................................................................................. 21
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS ............... 22
5.1 Introduction ............................................................................................................................... 22
5.2 Summary of the Study .............................................................................................................. 22
5.3 Conclusion ................................................................................................................................ 23
5.4 Recommendations .................................................................................................................... 24
5.5 Recommendation for Further Study ........................................................................................ 24
REFERENCES.................................................................................................................................. 25
APPENDICES ................................................................................................................................... 28
Appendix I: Introduction Letter ..................................................................................................... 28
Appendix II: Questionnaire ............................................................................................................ 29

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LIST OF TABLES
Table 1: Response rate........................................................................................................................ 14
Table 2: Gender .................................................................................................................................. 14
Table 3: Age bracket........................................................................................................................... 15
Table 4: Resident locality ................................................................................................................... 15
Table 5: Service delivery.................................................................................................................... 16
Table 6: R Square ............................................................................................................................... 16
Table 7: ANOVA for corruption ....................................................................................................... 18
Table 8: ANOVA for political changes ............................................................................................. 19
Table 9: ANOVA for technological advancement ........................................................................... 20
Table 10: Coefficient of determination ............................................................................................. 21

iv
LIST OF FIGURE

Figure 1: Conceptual Framework ........................................................................................................ 4

v
ABBREVIATION AND ACCRONYMS

ADB- Asian Development Bank

AG- Auditor General

EACC- Ethic and Anti-Corruption Commission

IAPS- Inter Agency Procurement Services

OECD- Organization for Economic Cooperation and Development

PPOA- Public Procurement Oversight Authority

TI - Transparency International

UNDP- United Nations Development Program

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OPERATIONAL DEFINITION OF TERMS
Effective procurement – It denotes successful acquisition and delivery of goods and services.

Factors- This are features limiting effective procurement and in this context include corruption,

political changes and technological advances.

Hindrance- Is the feature that might affect effective procurement.

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ABSTRACT
Auditor general report has revealed various corruption cases in counties and mismanagement of
taxpayers’ money allocated to counties. This has led to several impromptu search and arrest of
governors and procurement officers by Ethic and Anti-Corruption Commission. Transparency
and accountability in procurement have been issues thus the study examine the factors hindering
effective procurement of goods in Wajir County. The objectives of this study were to examine
how corruption hinder effective procurement of goods, assess how political changes hinder
effective procurement of goods and find out how technological advances hinder effective
procurement of goods in Wajir County. The study adopted institutional theory. The study used
descriptive survey design. Research instrument was questionnaire. The study used simple
sampling technique. The total target population was two hundred participants and a sample size
of fifty respondents was used. Questionnaire was piloted before the actual study by a test and
retest method. Questionnaire was given to the respondents with agreeable duration of reply
which was later collected. Data collected was analyzed quantitatively. The analyzed data was
presented in frequency tables. The study found out that there was corruption in the procurement
process with overpricing of goods and services, delivery of substandard goods and some
suppliers being favoured during tender awarding leading to ineffective procurement.
Respondents argued that with e- procurement, there had inadequate staffs with knowledge of e-
procurement, it had quickened procurement process but e-procurement data had been
manipulated to fix corrupt procurement process. Data analyzed showed that there had been
politics in procurement process with politicians having interest in procurement process, bribery
and misuse of office. The study recommends for accountability and openness in procurement,
training of more staffs to increase the literacy level on e-procurement and sensitize on upholding
ethical values in all procurement process. The study findings provide information to the policy
makers such as auditor general, national and county government on the factors that have
hindered effective procurement of in Wajir County.

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CHAPTER ONE: INTRODUCTION

1.1 Background to the study

Public procurement refers to the acquisition of goods, services and works by a procuring entity

using public funds (World Bank, 1995). According to Organization for Economic Cooperation

and Development (OECD) (2007), Procurement plays a crucial task in safeguarding fruitful

control and supply of inputs that are important for the organizations. It also plays an important

function in fostering best management practices that reduce the possibility of mismanagement in

use of resources meant for public.

According to OECD and Asian Development Bank (ADB) (2008), argue that the purpose of

public procurement is to minimize the cost via fostering straightforward tender, competition

protecting public money, eradicating mismanagement of resources and any cases of corruption.

All this is done in order to enhance delivery of public service (Vellapi, 2010).

Uyarra and Flannagan (2010), all procurement processes are guided by laws and regulations of

which they vary from one country to another. It account for a crucial segment of comprehensive

demand for goods and services and significant amount of money is involved hence it is the duty

of the institutions such as public to ensure public resources are effectively managed.

Transparency and ethicality should be a priority in public procurement to foster reasonable

development for the economy and uplifting the standard of living of the public (Seidu, Fatawu &

Ahmed, 2014). The evaluation of government is through delivery of services which its effect is

on public procurement (United Nations Development Program (UNDP) /Inter Agency

Procurement Services (IAPS) (2006). Social, political and technological environment factors of

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respective countries greatly hinder execution and impacts attained of public procurement and

more so the laws governing each country (Gayed, 2013).

Muehle (2015) argue that subdivision of procurement supplies of general user commodity are

featured with increased volume of incompetent, ineffectual and unclear which have been noted

by international organization on procurement of various countries internationally.

With changing features of social, economic and political state in Kenya, corruption deals in

public procurement continue to be uncovered despite reforms to improve procurement processes

((Public Procurement Oversight Authority (PPOA), 2007)). According to Mbae (2014), Counties

procurement have been a great challenge with technology, political forces, unethical practices,

trickery among procurement officers, accountability and transparency have greatly affected

procurement processes.

1.2 Statement of the Problem

Dzuke and Naude (2015) argue that public procurement is the nerve to conveyance of public

services and performance of general institution. According to Licenji (2015), inadequate skills

and experts in procurements is a notable hindrance in public procurement as procurement

officers have not been fully able to account for the value of the money in supply and delivery of

goods and services. Ameyaw, Mensah and Osei-Tutu (2012) note that transparency and

accountability in procurement have been an issue, trickery, corruption, fragile and outworn

public procurement policies and processes have affected procurement in institutions.

Namats (2018) assert that Ethic and Anti-Corruption Commission (EACC) arrested two Wajir

County officials due to mismanagement of twenty six million and one hundred thousand. Several

current and former Wajir County officials were arrested in corruption claims.

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According to the report of Auditor General (AG) of 30 th June 2018 assert that Wajir County

submitted late financial statement, overstatement of receipt, unaccounted funds and irregular

procurement of Emergency Water Trucking Services. It was also noted that there irregular

procurement of goods, works and services where there were irregular award of contracts and

suppliers did not have valid tax compliance and business permit. Some of the suppliers were

directly selected with

no reasons such as Wajir Ark Limited in the purchase and supply of Relief Food (Auditor Genera

l, 2018). Thus this study examines the factors hindering effective procurement in Wajir County.

1.3 Purpose of the Study

The study sought to examine the factors hindering effective procurement in Wajir County.

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1.4 Conceptual Framework

Independent variables Dependent Variable

Corruption

-Overpricing of goods and


services

-Favourism in procurement
process

-Substandard goods
procured Effective procurement of goods

- Timely delivery of goods


and services
Political changes
- Quality goods and services
-Misuse of office

-Bribery in tendering - Transparency and


awarding accountability

-Political interest in
procurement process

Technological advances

-Manipulation of data

- Inadequate expert on E-
procurement

Source: Author (2019)

Figure 1: Conceptual Framework

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1.5 Objectives of the Study

1.5.1General Objective

To investigate factors hindering effective procurement in Wajir County.

1.5.2 Specific Objectives

1. To examine how corruption hinder effective procurement in Wajir County.

2. To assess how political changes hinder effective procurement in Wajir County.

3. To find out how technological advances hinder effective procurement in Wajir County.

1.6 Research Questions

1. How does corruption hinder effective procurement in Wajir County?

2. How do political changes hinder effective procurement in Wajir County?

3. How does a technological advance hinder effective procurement in Wajir County?

1.7 Significance of the Study

The study findings provide information to the policy makers such as auditor general, national

and county government on the factors that have hindered effective procurement in Wajir County.

This provide insight that help to ensure effective procurement with an aim of improving service

delivery in Wajir County.

The study is a guide to the future researchers and provides relevant literature on factors curtailing

effective procurement.

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1.8 Scope of the Study

The study was delimited on factors hindering effective procurement in Wajir County. Data

collection, analysis and presentation took four months to be completed. The sample size of the

study was 50 respondents.

1.9 Limitation of the Study

Respondents feared to respond due to the information being used to tarnish their names.

Researcher assured them of their confidentiality and was not requested to provide their names.

Researcher also assured them that this research was entirely for academic purposes.

Financial constrains hindered researcher from conducting effective research hence prepared a

budget to ensure every expense was within the budget.

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CHAPTER TWO: LITERATURE REVIEW

2.0 Introduction

This chapter stresses on the relevant literature on procurement based on the objectives of the

study. The chapter will also focus on the theoretical framework.

2.1 Corruption and Procurement

According to Jain (2001), corruption is the misuses of power for individual gain by going against

the set standards and ethics. Transparency and integrity are important for procurement process

but in absence of it, delivery of goods and services is greatly affected in a country hence the need

of legal policy reforms for efficient service delivery in public procurement (Mwenzwa, 2014).

Basheka and Tumutegyereize (2010) argue that organizational culture have greatly contributed to

procurement corruption. The organizational culture have been followed in procurement process

for over years without notable changes hence even with new procurement officers, the

procedures are still retained despite been irregular, inefficient and unclear. Majority of

procurement board members in State Corporation have minimal coherency of their duty in

procurement process hence vulnerable to doctoring (Eyaa & Oluka, 2011).

According Badenhorst (1994), Purchaser in narrow sectors sometimes might conduct unethically

either knowing or unknowing through reward of counterfeited orders and invoices, fraudster

payment of invoices, deletion of computer data records, trickery of tenders such as reveling

information to suppliers to submit tender with lowest bid, purchasing more than required and

keeping credit notes for goods returned hence getting bribes, purchase and supply of substandard

goods. Basheka (2011), public procurement in third world countries is faced with corruption

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scandals where the government loses a lot of money as a result of inappropriate competition and

lack of transparency.

According to Burguet and Che (2004) affirm that procurement officers accept bribes and

manipulate the procurement process where the best firm does not get the tender but the firm that

bribes get the tender hence the root cause of ineffective delivery of goods and services to the

public. Van Weele (2014), assert there is need to ensure there is well utilization of public money

and get value for their taxes they remit. With no tolerance to corruption in procurement process,

there can be effective procurement of goods and services to the public (Compte, Mogiliansky

& Verdier, 2005).

2.2 Political Changes and Procurement

According to Transparency International (TI), corruption and public procurement (2010) argue

that politicians have been at forefront with egoistic interest in procurement to influence and get

contracts for their firms which are registered under names of their relatives or of their friends.

Procurement have been marred with political corruption where public fund is illegally acquired

(TI, 2006).

According to Dza, Fischer and Gapp (2013), political intrusion is a great challenge in

procurement process in Africa hence there is no fruitful execution of public procurement. .

Politicians have influenced tender process in one way or the other by dictating a specific contract

be awarded to person or firm of their choice. Managerial and leadership in procurement have

been inefficient and inappropriate constituted to serve the interest of the politicians thus the

reason for poor delivery of goods and services in Sub- Sahara Africa (Ringwald& Ndercaj, 2014).

As a result of political interference in procurement processes, it has led to shortage of medicine

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in public hospitals, poor roads,and substandard good procured, bottlenecked and improper

procurement processes hence leading to suffering of the public (Chimberengwa et.al, 2015).

2.3 Technological Advances

According to Lui (2008) Adoption of technology in procurement (e-procurement) has brought

many benefits in procurement process such as cost reduction and time saving and efficiency.

Mota and Filho (2011) countries have adopted e-procurement but have failed to a larger extent

and result of money wastage due to poor design and inadequate training of personnel. Its

implementation has resulted in technological errors and failures such as in e-notice, e-signature

which have efficient on security, cost errors and authentic bidder (Otieno, Muthoni & Mungai,

2013).

Insufficient expert on e- procurement has been issue and unwillingness to implement e-

procurement in order to hide malicious practices conducts in paperwork. According to Al-Moalla

and Li (2010), some organization usually have issues with e-procurement. Malekia (2016)

focused on benefits of e-procurement as anti-corruption tool but however found out that e-

procurement had some limitations such as erased database and manipulation of information of

contracts which make it hard to investigate corruption cases.

2.4 Theoretical Framework

2.4.1 Institutional Theory

The proponent of this theory is Meyer and Rowan (1977). It assert that institutional environment

powerfully impact the development of formal structures in an institution more than market

pressures

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To upgrade productivity in an institution, innovative composition are warranted. Thus the

institution must preserve certain composition and strategy so as to retain legitimacy in the

institutional environment. The theory has impact on procurement performance. The theory

summit that methods must be detected for the sake of safeguarding all the collaborators involved

in the procurement process to get fair treatment.

The procurement procedures should include; formulating a time frame for required procurement,

spotting the item source, stating the particulars of procurement, regulating procurement process,

knowing original offers, monitoring and evaluation, starting of a contract, contract delivery and

overseeing, accountability and record keeping, payment and contract accomplishment. When the

institution obeys the procurement process afterwards the procurement achievement will be

effective and efficient. The study will use this theory to examine the factors hindering effective

procurement in Wajir County.

2.5 Research Gap

There was limited literature on procurement and technological advances and majority of the

research have focused in successful implementation of e-procurement and its benefits. Few have

focused on e-procurement and its failure in procurement. The literature reviewed have not

sufficiently addressed the factors hindering the effective procurement therefore the study aim to

acquire the knowledge gap in the field of the study from the respondents in relation to effective

procurement within Wajir County.

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CHAPTER THREE: RESEARCH METHODOLOGY

3.0 Introduction

This chapter stress on what the researcher will do while in the field of the study and where the

sources of data will be collected.

3.1 Research Design

Descriptive survey design was incorporated to research on factors hindering effective

procurement of goods in Wajir County. This research examined how corruption, political change

and technological advances hinder effective procurement. Survey design were research

instruments which entailed questionnaire.

3.2 Study Area

The study was conducted in Wajir County. It came into existence in 2013 after it was enshrined

in 2010 constitution. It is among the forty seven counties with code number eight. Wajir County

Government Offices are located in East Gate Building found along Airport Road in Wajir. It has

six sub counties and thirty Wards. It has a budget allocation of more than nine billion.

3.3 Target Population

The target population constituted of50 staffs in the department of procurement, finance,

information, communication and technology, public service board, education and vocational

training officers in Wajir County, 140 residents and 10 members of county assemblies. The total

target population was 400 participants.

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3.4 Sampling Technique

The study used simple sampling technique. The study was grounded on each participant having

equivalent opportunity of being encompassed in the study.

3.5 Sample Size

Mugenda and Mugenda (2003) assert that a sample size of 10-50% can be obtained. This study

operated on a sample size of 25%. Therefore 50 respondents were employed in the study. This

was informed by the travels that researcher went while traversing the county collecting the

primary data.

3.6 Research Instruments

Research instrument was questionnaire.

3.7 Reliability and Validity of Research Instruments

The researcher sought the guidance of the supervisor to enhance this research to acceptedGretsa

university standard and any errors detected were rectified for the objectives of the study to be

attained. Research instruments were piloted before the actual study by a test and retest method.

This assisted the researcher be aware if the respondents understood the questionnaires and more

importantly the language used in the questionnaire. The researcher noted consistency and

accuracy of the responses.

3.8 Data Collection Technique

Primary data was garnered from the respondents through use of questionnaire. Questionnaires

were offered to the respondents with agreeable duration of reply and collected later.

Questionnaires were in closed end format. Secondary data were the review of the relevant

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literature from various scholars who were acknowledged in the reference. Secondary data was

collected from books, journals, articles, unpublished dissertations and authenticated websites.

3.9 Data Analysis and Presentation

Data collected was analyzed in qualitative and quantitative form. In qualitative form, data was

written in thematic and explained based on respondents’ feedback. In quantitative form, data was

accompanied with inferential statistics. The analyzed data was in presentation of frequency

tables.

3.10 Logical and Ethical Consideration

Researcher strictly adhered to rules and standards of research writing and academic integrity.

Relevant reviewed literature which was cited in this study, scholars were acknowledged.

Researcher sought approval from county government of Wajir before collecting the data.

Respondents’ privacy was protected and their participation was voluntary and with consent.

Provision of data by respondents was protected and meant for academic purpose.

Researcher had a time plan schedule and study was completed on time. Budget approximation

was drafted and expenses were accounted.

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CHAPTER FOUR: DATA ANALYSIS AND PRESENTATION

4.1 Introduction

The discussions in this chapter reflect the responses of the analyzed data from the field of the

study grounded on the study questionnaire which assisted in attaining the objectives of the study.

4.2 Participants Response

Researcher gave out fifty questionnaires but only thirty nine questionnaires were completely

filled and returned. The response rate was seventy eight percent.

Questionnaires Participants Percentage


Returned 39 78%
Not returned 11 12%
Total 50 100%

Table 1: Response rate

4.3 Gender

Male respondents mainly constituted the gender. Among the thirty nine respondents, twenty five

were male while fourteen were female.

Gender Respondents Percentage


Male 25 64%
Female 14 36%
Total 39 100%

Table 2: Gender

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4.4 Age Bracket

The study was formed by majority being in the age bracket of thirty to forty years. The second

age bracket in the study was mainly the respondents between twenty to thirty years. Respondents

within the range of forty to fifty and fifty and above were equivalent.

Age Frequency Cumulative percentage


20-30 11 28%
30-40 16 42%
40-50 6 15%
50 and above 6 15%
Total 39 100%

Table 3: Age bracket

4.5 Respondents Locality

The study noted that most of the respondents were residing within Wajir County. Out of 39

respondents, thirty two respondents were born, raised and working within Wajir while seven

respondents were from other regions of the country and were in Wajir for work related purposes.

Resident Respondents Cumulative Percentage


Yes 32 82%
No 7 18%
Total 39 100%

Table 4: Resident locality

4.6 Service Delivery

The researcher wanted to know if the persons within Wajir are contented with service delivery.

The study found out that public service board had the highest with a mean of 3.15 followed

closely with procurement staffs being contented with service delivery meanof 2.91. The study

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found out that finance staff were satisfied with a mean of 2.89 and vocational training officer

with a mean of 2.86. According to the responses, ICT staffs were satisfied with a mean of 2.53.

The study noted that members of county assembly and residents were least satisfied with service

delivery with a mean of 2.22 and 1.93 respectively.

Respondents Mean Standard deviation


Residents 1.93 0.81
ICT staff 2.53 0.57
Finance staff 2.89 0.76
Procurement staff 2.91 0.33
Public service board staff 3.15 0.67
Vocational training officers 2.86 0.14
Members of county assembly 2.22 0.36

Table 5: Service delivery

4.7 Regression Analysis

Model Summary

Model R R Square Adjusted R Square Std. Error of


the Estimate
1 .718a .516 .511 .500

Table 6: R Square

a. Predictors: (Constant), corruption, political changes and technological advancement.

Interpretation: The value of R Square is 51.6% (.516) which indicates that the dependent

variable organizational performance can be explained by all the independent variables;

corruption, political changes and technological advancement.

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4.8 ANOVAa

Model Sum of Df Mean Square F Sig.


Squares
Regression
Regression 85.158 5 40.238 160.619 .000b
1 Residual 45.842 140 .470
Total
131.000 145

a. Dependent Variable: Procurement of goods

b. Predictors: (Constant), Corruption, political changes and technological advancement.

Interpretation: In this test, calculated value is 160.619 where tabulated value at 5% significant

level with 5 degrees of freedom is 5. This test shows that the calculated value is greater than

tabulated value. Thus, it can be observed that there is sufficient evidence to reject null hypothesis.

4.8.1 Corruption and Procurement

The findings of variance between various demographics which are service delivery, age and

gender reveals that the resultant p values ranges from 0.503 on service delivery and 0.020 on

gender. As per the respondents, they argued that auditor general report reflects corruption in

Wajir County, goods and services procured were overpriced than the market price, procurement

officers cannot be trusted with procurement process and favourism and familiarity affected

procurement of goods and services. Respondents stated that goods and services delivered to the

public were of standard. Participants lastly asserted that tenders were awarded justly to the only

listed companies and acquisition of goods and services was done in fair and transparent manner.

According to the study p value less than 0.05 reveals that there is no statistical significant

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difference in the views provided by residents and the views that corruption had hindered

effective procurement.

P Value ( 95% confidence


Corruption statements Service delivery Age Gender
Acquisition of goods and services is done in .137 .314 .020
fair and transparent manner
Tender is awarded justly to the only listed .245 .109 .379
companies
Goods and services delivered to the public are .253 .202 .081
of standard
Procurement officers cannot be trusted with .463 .027 .190
procurement process
Auditor general report reflects corruption in .503 .381 .561
Wajir County
Favourism and familiarity affects procurement .360 .391 .569
of goods and services
Goods and services procured are overpriced .481 .178 .092
than the market price

Table 7: ANOVA for corruption

4.8.2 Political changes and Procurement

The study findings indicated that political changes in election were a sign of dissatisfaction with

delivery of goods and services. It was noted that political scandals was a failed application of

procurement laws and regulation and respondents also stated that politicians influence

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procurement process. According to participants, politicians put their royals as procurement

officers and politicians were bribed to favour some companies in tender awarding. As per the

respondents, each regime had their procurement officers to suit their interests.

Research analysis of variance in table 8 below reveals relationship between service delivery and

Political scandals is a failed application of procurement laws with a p score value of less than

0.05 (p= 0.015). The study found that political changes is a sign of dissatisfaction with delivery

of goods and services had a p score value of more than 0.05 (p= 0.789) implying that there is no

statistical significant difference in the views provided by respondents toward that statement.

P Value ( 95% confidence


Political changes statements Service Age Gender
delivery
Politicians influences procurement process .538 .148 .418
Politicians put their royals as procurement .407 .271 .225
officers
Politicians are bribed to favour some companies .393 .089 .341
in tender awarding
Each regime have their procurement officers to .192 .344 .381
suit their interest
Political changes is a sign of dissatisfaction with .789 .178 .678
delivery of goods and services
Political scandals is a failed application of .684 .590 .015
procurement laws and regulation

Table 8: ANOVA for political changes

4.8.3 Technological advancement and procurement

Technology has been now integrated in the procurement process and this study wanted to find

out the reaction of respondents from Wajir on the aspect of e-procurement. This study found out

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that respondents argued that technology has ease procurement process. The study findings

indicated that e-procurement had worked effectively in Wajir County but inadequate experts on

e-procurement in Wajir County had affected effective procurement.

Respondents stated that data had been generated to fix corrupt procurement where an e-

procurement is a tool for anti-corruption. According to participants, e-procurement process had

not revealed the inefficiency in delivery of goods and services. The study findings reveal that the

scores of p value are greater than 0.05 which indicate that there is no significant relationship

between service delivery and hindrance on effective procurement. The study found out that

gender had the lowest p score value of 0.082 and service delivery with the highest p score value

of 0.718.

P Value ( 95% confidence


Political changes statements Service Age Gender
delivery
Technology has ease procurement process .718 .368 .405
Data has been generated to fix corrupt .482 .628 .561
procurement
E-procurement have worked effectively in Wajir .690 .291 .116
County
All the e-procurement process have not revealed .246 .481 .082
the inefficiency in delivery of goods and services
Political changes is a sign of dissatisfaction with .585 .634 .215
delivery of goods and services
E- procurement is a tool for anti-corruption in .374 .502 .343
Wajir County

Table 9: ANOVA for technological advancement

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4.10 Coefficient of determination

The study carried out various regression analyses in order to find out the relation between the

independent variables (corruption, political changes and technological advances) and dependent

variable (procurement). Coefficient of determination clarify the magnitude variance in dependent

variables of this study is clarified by variance in independent variable of this study. The equation

of coefficient of determination which is Y=β1X1+β2X2+β3X3+c of which the values were

gotten from table 9 where X1 is corruption coefficient, X2 is political changes coefficient and X3

is the technological advances coefficient and c is the constant coefficient. So the equation was

Y= 0.38X1+0.22X2+0.19X3+1.213. Y represented dependent variable. If the independent

variable were taken to be at constant at zero then effective procurement would be 1.213. At 95%

and 5% level of confidence and significance respectively, corruption as a factor hindering

effective procurement had the highest level of significant with 0.324, followed by political

changes (0.256) and with the least level of significant being technological advances with 0.177.

Model Unstandardized Standardized t sig


coefficient coefficient
B Standard Beta
error
1 Constant 1.213 0.122 0.909 0.378
Corruption 0.38 0.215 0.144 0.95 0.324
Political 0.22 0.110 0.148 1.091 0.256
changes
Technological 0.19 0.154 0.078 0.587 0.177
advances

Source: Researcher, 2019

Table 10: Coefficient of determination

21
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.1 Introduction

This chapter summarizes the discussions of the study based on the specific objectives, give

conclusion and recommendations.

5.2 Summary of the Study

The study was based on the three specific objectives that is to examine how corruption hinder

effective procurement of goods in Wajir County, assess how political changes hinder effective

procurement of goods in Wajir County and to find out how technological advances hinder

effective procurement of goods in Wajir County. The general summary of the study was that its

effectiveness was seventy eight percent where only thirty nine respondents participated and

majority were male who were twenty five. Respondents between the ages of thirty to forty

mainly took part in the study. Respondents who were mainly the residents had an issue with

delivery of goods and services.

The first specific objective was to examine how corruption hinders effective procurement of

goods in Wajir County. The variables in consideration were overpricing, substandard of goods

and favourism and familiarity in procurement process. The analysis results were that yearly

auditor general report reflects corruption in the procurement process. The variable of overpricing

of goods and services was a key as per respondents in procurement where goods were overpriced

compared with the standard market price. Respondents stated that favourism and familiarity in

procurement process had been witnessed and substandard of goods had been seen in Majir

County and it was the variable that recorded.

22
The second specific objective was to assess how political changes hinder effective procurement

of goods in Wajir County. The study found out that dissatisfaction in terms of delivery of goods

and services in Wajir County had led to political changes through elections. Based on the data

analyzed, respondents argued that there was misuse of office hindering effective procurement.

This study found out that there was bribery in tendering awards where only those who bribe get

the tender. Respondents argued that political interest was witnessed in procurement process with

politicians influencing procurement.

The third specific objective was to find out how technological advances hinder effective

procurement of goods in Wajir County. Respondents were aware of e-procurement and it’s had

ease procurement process and was used as a tool to detect corruption in the county. The study

found out that there were inadequate experts on e-procurement and respondents also stated that

the e-procurement data was manipulated to cover up the corrupt deals in procurement process.

5.3 Conclusion

Delivery of goods and services in Wajir County depends on effectiveness of procurement

process. This study was examining factors hindering effective procurement in Wajir County. The

independent variables were corruption, political changes and technological advances. The study

noted that there was no significant relationship between corruptions, political changes and

technological advances and effective procurement. Though the respondents argued that auditor

general report implies ineffectiveness in procurement, there are other factors which hinder

effective procurement but this study only researched on three. The study found out that there was

a challenge with procurement hindering delivery of goods and services in Wajir County which

signaled ineffective procurement. The study noted various challenges in procurement and come

up with recommendations.

23
5.4 Recommendations

1. The study recommends for openness and accountability in procurement process in Wajir

County. This will restore faith to residents and all those who request for tenders and perceive

fairness in tender awarding. Procurement officers need to be accountable in all the procurement

process to ensure there is integrity and financial accountability of the hardly taxed Kenyans.

2. Wajir County need to either apprentice procurement officers to e-procurement or sponsor all

procurement officers to go back to school to learn the technological advancement to easen the

procurement process. This will help increase the procurement officers who are literate on e-

procurement.

3. There is need to emphasize on the ethicality of office holders to ensure effective procurement

which will be reflected on timely and quality delivery of goods and services.

5.5 Recommendation for Further Study

The study dealt with factors hindering effecting procurement. Independent variables discussed

were corruption, political changes and technological advances. The researcher recommends for

further research on contribution of auditor general report on improving procurement process in

Wajir County.

24
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27
APPENDICES

Appendix I: Introduction Letter

Dear Sir/Madam

My name is Abdifatah Muhumed Hassan (BUS-4-2506-18), a bachelor of commerce student at


Gretsa University. I am conducting a research on factors hindering effective procurement in
County government of Wajir. Allow me to invite you to be part of the respondents by filling the
questionnaires provided by the study. Your participation is voluntary and highly appreciated.
Kindly respond with lot of sincerity and your response will be confidential and meant for
academic purposes in fulfillment for the award of my degree course.

Yours

Abdifatar Muhumed Hassan (0722464951)

28
Appendix II: Questionnaire

1. What is your gender?

Male Female

2. Age bracket

20-30yrs 30-40 yrs

40-50 yrs 50yrs and above

3. Are you a resident of Wajir County?

Yes No

4. Are you satisfied with Wajir County service delivery?

Yes No

29
5. Corruption and procurement
Kindly tick appropriately in the comments stated below. The following numbers signal that
1=strongly agree 2=Agree 3=Neutral 4=strongly disagree 5=Disagree

Comments 1 2 3 4 5
Acquisition of goods and services is done in fair and transparent manner
Tender is awarded justly to the only listed companies
Goods and services delivered to the public are of standard
Procurement officers cannot be trusted with procurement process
Auditor general report reflects corruption in Wajir County
Favourism and familiarity affects procurement of goods and services
Goods and services procured are overpriced than the market price

6. Political changes and procurement

Kindly tick appropriately in the comments stated below. The following numbers signal that
1=strongly agree 2=Agree 3=Neutral 4=strongly disagree 5=Disagree

Comments 1 2 3 4 5
Politicians influences procurement process
Politicians put their royals as procurement officers
Politicians are bribed to favour some companies in tender awarding
Each regime have their procurement officers to suit their interest
Political changes is a sign of dissatisfaction with delivery of goods and
services
Political scandals is a failed application of procurement laws and regulation

30
7. Technological advances and procurement
Kindly tick appropriately in the comments stated below. The following numbers signal that
1=strongly agree 2=Agree 3=Neutral 4=strongly disagree 5=Disagree

Comments 1 2 3 4 5
Technology has ease procurement process
Data has been generated to fix corrupt procurement
E-procurement have worked effectively in Wajir County
All the e-procurement process have not revealed the inefficiency in delivery
of goods and services
Inadequate experts on e-procurement in Wajir County have affected
effective procurement.
E- procurement is a tool for anti-corruption in Wajir County

31

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