SUSTAINABLE PROCUREMENT PROCESSES AND PERFORMANCE OF MANUFACTURING FIRMS IN NAIROBI CITY COUNTY, KENYA
Keywords:
Sustainable procurement practices, Environmental, Social, and Governance (ESG) performance, procurement-led waste reduction, ethical procurement practicesAbstract
This study sought to examine the relationship between sustainable procurement practices and performance in manufacturing firms in Nairobi, providing empirical evidence on their effectiveness, challenges, and opportunities. The study employed a descriptive research design, utilizing stratified random sampling to select procurement managers, supply chain officers, sustainability officers, and finance managers from medium and large-scale manufacturing firms in Nairobi County. The target population consisted of 210 manufacturing firms, as documented by the Kenya Association of Manufacturers (KAM, 2024), with a total respondent pool of 840 employees. The sample size was determined using Krejcie and Morgan’s formula, ensuring statistical reliability and representativeness. Data was collected using structured questionnaires. Data analysis involved both descriptive and inferential statistics, using SPSS version 28 software. Quantitative data analysis involved descriptive statistics (means, frequencies, and percentages) and inferential statistics (correlation and multiple regression analysis) to establish the relationship between sustainable procurement practices and performance. Pilot testing of the research instrument demonstrated strong validity and reliability. The instrument was validated and reliable for full-scale data collection. This study investigated the influence of sustainable procurement practices on the ESG performance of manufacturing firms in Nairobi County, Kenya. Four core dimensions were examined: procurement-led waste reduction, and ethical procurement practices. Data were collected from 237 respondents using structured questionnaires and analyzed through descriptive statistics, correlation analysis, and multiple regression. The findings revealed that all four procurement practices significantly and positively affect ESG performance, with ethical procurement emerging as the most influential predictor (B = 0.367, p < 0.05), followed by procurement-led waste reduction (B = 0.278, p < 0.05). Firms that integrate ESG criteria into procurement processes demonstrated improved environmental compliance, operational efficiency, and stakeholder trust. The study concludes that sustainable procurement is a strategic driver of ESG performance and recommends that firms adopt circular waste reduction models, and embed ethics into procurement governance. These practices collectively enhance transparency, compliance, and long-term sustainability outcomes.
Key Words: Sustainable procurement practices, Environmental, Social, and Governance (ESG) performance, procurement-led waste reduction, ethical procurement practices
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