CONTRACT MANAGEMENT PRACTICES AND PROCUREMENT PERFORMANCE IN METROPOLITAN COUNTY GOVERNMENTS, KENYA
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Abstract
Kenya's County Governments are grappling with substantial financial losses attributed to inadequate procurement processes, specifically stemming from deficient contract management practices. According to a survey conducted by the Public Procurement Regulatory Authority (PPRA, 2018), 40% of procurement contracts in Kenya experience delays, resulting in inefficiencies and potential financial losses. This study therefore sought to assess the relationship between contract management practices and procurement performance of metropolitan county governments, Kenya. Specifically, the study sought to establish the relationship of contract records management practices and procurement performance in metropolitan county governments, Kenya, to find out the relationship of vendor management practices and procurement performance in metropolitan county governments, Kenya. This study used cross-sectional survey study design. The study targeted Metropolitan Counties which include; Nairobi County, Machakos County, Kiambu County and Kajiado County. The target population was 320 respondents comprising of heads and deputies of procurement, finance, audit, and monitoring departments in ten ministries in each of the four county governments. The overall sample size for this study was determined using a formula by Krejcie and Morgan (1970). Therefore, using the Krejcie and Morgan formula, the sample size for the study was 176 respondents. This study also used questionnaire to collect data relevant to this study. Quantitative data collected was analyzed using descriptive statistical techniques which are frequencies, mean, standard deviation. Inferential statistics which include Pearson correlation and the Regression Analysis Model were used to test the relationship between study variables. The significance of the model was tested at 5% level of significance. Data was analysed using Statistical Package for Social Sciences (SPSS) software. The study results were presented through use of tables and figures. The study findings revealed that contract records management (β = 0.311, p < 0.05), and vendor management (β = 0.287, p < 0.05), significantly impact procurement performance in metropolitan county governments in Kenya. The coefficients indicate that improvements in these practices lead to substantial enhancements in procurement outcomes. The study concludes that robust contract management is crucial for optimizing procurement performance. Based on these findings, it is recommended that county governments invest in electronic records management systems, strengthen vendor relationships, to ensure efficient and effective procurement operations.
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