Institutional Factors and Procurement Performance at National Youth Service’s Headquaters in Nairobi, Kenya
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Date
2020-07
Authors
Wanjiru, Gilbert Njogu
Journal Title
Journal ISSN
Volume Title
Publisher
Kenyatta University
Abstract
Public procurement plays a leading role in the attainment of political, economic and social
goals of a country through provision of goods, works and services. However, material quality
defects, compromised order cycle time, lead time and poor contract management among
others, are rampant. For instance, The NYS lost over Kshs 791milion in 2015 and Kshs 10.5
Billion in 2018 fraudulent procurement deals. This pilferage could be partly attributed to
institutional factors. Despite this being the case in majority of public institutions, few studies
have been done to ascertain the influence institutional factors have on the procurement
processes of public organizations in Kenya in the context of the National Youth Service.
Specifically, the research attempted to establish the influence of organizational culture,
employee professional and competence and internal controls on public procurement
performance in public institutions. To achieve its objective, the current study adopted a
descriptive research design using quantitative approach on targeted 60 procurement staff that
were sampled through a census technique. A closed-ended questionnaire was used to collect
primary data using drop and pick tactic. The data was analyzed using descriptive and
inferential statistics (SPSS version 21). The findings were expressed in frequencies and
percentages presented thematically in tables and figures. The study established that
employees shared behaviors but never shared ideas, attitudes, values, habits, beliefs, customs,
language, rituals and practices. In terms of employee competence, it was established that staff
did not possess relevant procurement functionality skills, there was no cross-function
teamwork among staff and there lacked high level of integrity among employees. Also, there
was no confidentiality of classified matters, no will to avoid conflict of interest and personnel
lacked adequate procurement knowledge and experience in procurement processes
respectively. In regard to internal control systems, it was established that there was no
authorization, verifications, reconciliations, reviews of operating performance and security of
assets as well as definition of segregation of duties. Accordingly, the study recommends inhouse
training and couching be promoted to cultivate stated organization culture such as
behaviour, ideas, attitudes, values, habits, beliefs, customs and language among employees.
Also, recommended is regular training and seminars be promoted and encouraged so as to
equip staff with relevant procurement functionality skills, cross-function teamwork, integrity,
confidentiality of classified matters, to avoid conflict of interest, required procurement
knowledge, adequate experience in procurement processes and upholding of professional
ethics. Further, the study recommends enforcing of internal control mechanisms to improve
authorization, verifications, reconciliations, reviews of operating performance, security of
assets and definition of segregation of duties.
Description
A Research Project submitted to the School of Business in Partial Fulfilment of the Requirements for the Award of the Degree of Master of Business Administration (Procurement Option) of Kenyatta University.
July, 2020
Keywords
Institutional Factors, Procurement Performance, National Youth Service’s Headquaters, Nairobi, Kenya