Professional Documents
Culture Documents
BY
JUDY GATHONI
DPS/186/22
JULY 2023
DECLARATION
This research project is my original work and has not been presented for award of a diploma
or for any similar purpose in any other institution.
Signature: _______ _ _ _ _ Date:______ _ _ _ _
Judy Gathoni
DPS/186/22
Supervisor: This research project has been submitted with my approval as University
supervisor
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
1.5.1 General 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 Conceptual Framework.........................................................................................................9
2.5 Empirical Review...................................................................................................................11
2.6 Resarch gaps…......................................................................................................................12
2.7 Summary................................................................................................................................12
TI - Transparency International
Effective procurement – It denotes successful acquisition and delivery of goods and services.
Factors- This are features limiting effective procurement and in this context include
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 Nakuru 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
Nakuru 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 Nakuru County.
CHAPTER ONE: INTRODUCTION
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
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
According to OECD and Asian Development Bank (ADB) (2008), argue that the purpose
cases of corruption. All this is done in order to enhance delivery of public service (Vella pi,
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.
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
environment factors of
respective countries greatly hinder execution and impacts attained of public procurement
Muehle (2015) argue that subdivision of procurement supplies of general user commodity
are featured with increased volume of incompetent, ineffectual and unclear which have
With changing features of social, economic and political state in Kenya, corruption deals
(2014), Counties procurement have been a great challenge with technology, political forces,
unethical practices, trickery among procurement officers, accountability and transparency have
Dzuke and Naude (2015) argue that public procurement is the nerve to conveyance of
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
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 complia nce and business permit. Some of the
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 influencing effective procurement in Nakuru
County.
The study sought to examine the factors influencing effective procurement in Nakuru County.
1.5 Objectives of the Study
1.5.1General Objective
3. To find out how technological advances hinder effective procurement in Nakuru County.
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
Nakuru County. This provide insight that help to ensure effective procurement with an aim of
The study is a guide to the future researchers and provides relevant literature on factors
The study was delimited on factors hindering effective procurement in Nakuru County.
Data collection, analysis and presentation took four months to be completed. The sample size
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.
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.
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
Basheka and Tumutegyereize (2010) argue that organizational culture have greatly contributed
process for over years without notable changes hence even with new procurement
officers, the procedures are still retained despite been irregular, inefficient and
coherency of their duty in procurement process hence vulnerable to doctoring (Eyaa & Oluka,
2011).
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
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
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
According to Dza, Fischer and Gapp (2013), political intrusion is a great challenge
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
et.al, 2015).
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
2013).
Moalla and Li (2010), some organization usually have issues with e-procurement.
found out that e- procurement had some limitations such as erased database and
The proponent of this theory is Meyer and Rowan (1977). It assert that institutional
Thus the institution must preserve certain composition and strategy so as to retain legitimacy
The theory summit that methods must be detected for the sake of safeguarding all the
The procurement procedures should include; formulating a time frame for required
procurement, spotting the item source, stating the particulars of procurement, regulating
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
For this study, five key success factors which characterize effective strategic procurement
were shortlisted for consideration: strategy development, spend analysis, supplier relationship
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 influencing the effective procurement therefore the study
aim to acquire the knowledge gap in the field of the study from the respondents in relation
2.7 Summary
The literature reviewed the effects of effective performance in the procurement sector. These
include; ethical policies, ethical codes and conduct and corporate social responsibilities. Further
the chapter examine theories such as agency theory and legitimacy theories as well as the
conceptual framework that showed the relationship between the independent variables and the
dependent variable
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
effective procurement of goods in Nakuru County. This research examined how corruption,
The study was conducted in Nakuru County. It came into existence in 2013 after it was enshrined
in 2010 constitution. It is among the forty seven counties with code number thirty two. Nakuru
County
Government Offices are located along Kenyatta Avenue Road in Nakuru. It has
eleven sub counties and fifty five Wards. It has a budget allocation of more than nine billion.
finance, information, communication and technology, public service board, education and
vocational training officers in Nakuru County, 140 residents and 78 members of county
The study used simple sampling technique. The study was grounded on each participant
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
3.6 Research
Instruments
The researcher sought the guidance of the supervisor to enhance this research to accepted
Gretsa 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
Primary data was garnered from the respondents through use of questionnaire.
and collected later. Questionnaires were in closed end format. Secondary data were
was collected from books, journals, articles, unpublished dissertations and authenticated
websites.
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.
Researcher strictly adhered to rules and standards of research writing and academic
integrity. Relevant reviewed literature which was cited in this study, scholars were
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
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.
Researcher gave out fifty questionnaires but only thirty nine questionnaires were
completely filled and returned. The response rate was seventy eight percent.
Male respondents mainly constituted the gender. Among the thirty nine respondents, twenty
Table 2: Gender
4.4 Regression Analysis
Model Summary
Table 6: R Square
Interpretation: The value of R Square is 51.6% (.516) which indicates that the
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.
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 Nakuru 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
effective 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
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.
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
that respondents argued that technology has ease procurement process. The study
findings indicated that e-procurement had worked effectively in Nakuru County but
Respondents stated that data had been generated to fix corrupt procurement where an
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
procurement. The study found out that gender had the lowest p score value of 0.082 and
of 0.718.
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
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
dependent variable. If the independent variable were taken to be at constant at zero then
changes (0.256) and with the least level of significant being technological advances with 0.177.
5.1 Introduction
This chapter summarizes the discussions of the study based on the specific objectives,
The study was based on the three specific objectives that is to examine how corruption
hinder effective procurement of goods in Nakuru County, assess how political changes
hinder effective procurement of goods in Nakuru County and to find out how
technological advances hinder effective procurement of goods in Nakuru 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
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
familiari ty in procurement process had been witnessed and substandard of goods had
been seen in Majir County and it was the variable that recorded.
The second specific objective was to assess how political changes hinder effective
procurement
of goods in Nakuru County. The study found out that dissatisfaction in terms of delivery of
goods and services in Nakuru County had led to political changes through elections. Based
on the data analyzed, respondents argued that there was misuse of office hindering effective
procu rement. 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
The third specific objective was to find out how technological advances hinder
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
5.3 Conclusion
procurement process. This study was examining factors hindering effective procurement in
Nakuru 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
which signaled ineffective procurement. The study noted various challenges in procurement
Nakuru 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.
advancement to easen the procurement process. This will help increase the procurement
procurement which will be reflected on timely and quality delivery of goods and services.
The study dealt with factors influencing effecting procurement. Independent variables
discussed were corruption, political changes and technological advances. The researcher
Burguet, R. & Che, Y., K. (2004). Competitive procurement with corruption. RAND Journal
of
Economics, 35 (1): 60-68.
Dzuke, A. & Naude, M., J., A.(2015). Procurement challenges in the Zimbabwean public
sector.
Journal of Transport and Supply Chain Management 9(1), 1–
9. https://doi.org/10.4102/jtscm.v9i1.166
Eyaa, S. & Oluka, P., N. (2011). Explaining compliance in public procurement in
Uganda.
International Journal of Business and Social Science, Vol 2 No 11. Pp. 35 -44
Gayed, Y., E., L.(2013). The influencing factors of public procurement policy development-
the case of Libya. Doctoral thesis, Salford Business School, University of
Salford, Manchester, United Kingdom.
Jain, A., K. (2001). Corruption: A Review”, Journal of Economic Surveys 15(1), 71–
121. Licenji, A. (2015). Standards and challenges of public procurement. European
Scientific
Journal 11(25), 229–240.
Mbae, L., N. (2014). Public procurement law and procurement performance of
county governments in Kenya: case of Machakos county government. Unpublished
thesis in the University of Nairobi.
http://erepository.uonbi.ac.ke/bitstream/handle/11295/76254/
Meyer, J., W & Rowan, B. (1977). Institutionalized organizations: Formal structure as myth
and ceremony. American journal of sociology 83: 340–363.
Mota, F., P., B. & Filho, J., R. (2011). Public E-procurement and the Duality of
Technology: A Comparative Study in the Context of 236 MCCUE & ROMAN
Mugenda, O., M., & Mugenda, A., G. (2003). Research methods: Qualitative and
Quantitative
Approaches. Nairobi: Acts Press
Muehle, J., O. (2015). Development and Reforms of the Kenyan Public Procurement System
in
Nairobi. Nairobi: Macmillan Press.
Seidu, S., S., Fatawu, A. & Ahmed, S., (2014). Assessing the contribution of Public
Procurement in revenue mobilization in Ghana. International Journal of Economics,
Commerce and Management 2(9), 1–20.
Transparency International (2006). Handbook: Curbing Corruption in Public
Procurement.
Berlin: TI.
Van Weele, A.J., (2014). Purchasing and supply chain management, 6th edn., Cengage
Learning, Singapore.
World Bank (1995). Guidelines: Procurement under IBRD Loans and IDA Credits.
Washington: World Bank.
APPENDICES
Dear Sir/Madam
Yours
Judy Gathoni
Appendix II: Questionnaire
Male Female
2. Age bracket
No
Yes
Yes No
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
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
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 Nakuru County
All the e-procurement process have not revealed the inefficiency in
delivery
of goods and services
Inadequate experts on e-procurement in Nakuru County have
affected effective procurement.
E- procurement is a tool for anti-corruption in Nakuru County