PUBLIC PROCUREMENT PREFERENCES AND SUPPLY CHAIN PERFORMANCE OF NAIROBI CITY COUNTY, KENYA
Keywords:
Public Procurement Preferences, Supply Chain Performance, Local Supplier Preference, Social Inclusion PreferenceAbstract
This study explored the influence of public procurement preferences on supply chain performance in Nairobi City County, Kenya, with a particular focus on local supplier preference and social inclusion preference. As a vital instrument for socio-economic development, public procurement is increasingly being utilized to promote inclusivity by empowering marginalized groups, including women, youth, and persons with disabilities. However, despite the presence of well-structured policy frameworks, the implementation of these preferences has not consistently yielded the desired improvements in supply chain performance—highlighting a persistent gap between policy intent and actual outcomes. To address this gap, the study set out to examine how local supplier and social inclusion preferences influence key supply chain metrics such as cost reduction, service delivery, and customer satisfaction. The research adopted a descriptive design targeting procurement staff and suppliers engaged in county tenders. A stratified sample of 161 participants was selected, and data was collected using structured questionnaires. The data was then analyzed using descriptive and inferential statistics, including multiple regression analysis. The findings revealed significant positive relationships between procurement preferences and supply chain performance. Notably, social inclusion preference emerged as the strongest predictor (β = 0.741), while local supplier preference also demonstrated a substantial influence (β = 0.628). Together, these preferences were shown to explain 70.1% of the variance in supply chain performance, underscoring their combined impact. The study concludes that when effectively implemented, preferential procurement policies can generate synergistic benefits across economic, social, and operational domains without compromising efficiency. Nairobi City County serves as a compelling case for how developing economies can balance inclusive procurement goals with supply chain optimization. Key recommendations include: (1) enforcing local procurement targets supported by vendor capacity-building programs, and (2) introducing measurable quarterly quotas for marginalized groups. The study further recommends future research employing longitudinal designs to evaluate sustained impacts and the potential of digital technologies to enhance transparency and accountability in inclusive procurement systems.
Key Words: Public Procurement Preferences, Supply Chain Performance, Local Supplier Preference, Social Inclusion Preference
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