Determinant of procurement performance at retirement benefit authority in Kenya

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Date
2014
Authors
Kingori, Phillip W.
Ngugi, Karanja
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Abstract
In Kenya, the pension system contributes to an estimated 68 percent of the total income of retirees and controls over KShs 510 billion worth of assets in 2011, the industry assets grew by 15.5 percent from Kshs548.7 billion in December 2012 to Kshs633.5 billion as at June 2013. As at December 2011, however, pension managers lost Kshs 500 million, the first drop since industry regulator Retirements Benefits Authority was started in 2002. Reports from Republic of Kenya show that pension schemes in Kenya are associated with loss of billions of money every year due to Poor procurement practice. The study was guided by four objectives (information technology, top management, procurement policy and training. The study was a descriptive research design. The target population was top management, middle level management and low level management in the Retirement Benefit Authority. Questionnaires was the main data collection instruments. The study employed both quantitative and qualitative analysis techniques. A regression model was used to analyze the objectives The collected data was processed using SPSS and presented using frequency tables, bar charts, and pie charts. The study found that information technology, top management, procurement policy and employee competency positively affected procurement performance at the retirement benefit authority. The purpose of information technology was to allow business partners to share information related to customer orders and inventory positions in supply chains. Such facilitation of information sharing by IT helps manage inventories more effectively and streamline operations. The study further found that preparation of procurement policy, frequency of formulation of procurement policy and the evaluation of the same contributes to the retirement authority benefit. According to the analysis of findings, the study concludes that procurement policy was the key factor influencing procurement performance at Retirement Benefit Authority since the P-value = 0.001 which is less than 5%. Keywords: Determinant of Procurement Performance at Retirement Benefit Authority in Kenya.
Description
Research article
Keywords
Determinant of Procurement Performance at Retirement Benefit Authority in Kenya
Citation
European Journal of Business Management, 1 (11), 361-377. 2014