Effect of Tendering Process on Performance of Supply Chain Functions in Machakos County, Kenya

Abstract

Despite the enactment of the Public Procurement and Disposal Act, 2015 and operation of various regulations to improve performance of the procurement function, public procurement in Kenya is marred by corruption, resulting to losses of public funds amounting to billions of shillings. Over 80 percent of corruption practices in Kenya occur in public procurement. Therefore, the study sought to establish effect of tendering process on performance of supply chain functions in Machakos County. The study adopted legitimacy theory and transaction cost theory. The study adopted descriptive research design. The target population of the study was 10 procurement heads, 20 accounting heads and 21 store managers in the County government of Machakos. Since the sample size was small, the researcher used census technique to incorporate all the targeted respondents. The study used questionnaires to collect primary data from the respondents. Quantitative data was analyzed by descriptive statistics which was presented through graphs, tables and charts. Data analysis was done using the SPSS Software version 24. Multiple regression analysis was used to determine independent and dependent variables relationship. From the findings, the study established that there exists a strong positive and significant relationship between tendering process and performance of supply chain functions in Machakos County. In the light of the foregoing findings, the study recommends that there should be a regular and continuous monitoring and assessment of procurement systems in public entities such as county government with regard to their compliance with the procedures, rules and regulations setup in the Public Procurement Act.