STRATEGIC PROCUREMENT PRACTICES AND PERFORMANCE OF COMMERCIAL STATE CORPORATIONS IN KENYA

Loise Nyabonyi Machoka, Dr. Thomas Mose

Abstract


The efficiency and performance of commercial state corporations in Kenya are crucial for the country's economic development and the delivery of public services. However, these corporations face persistent challenges in their procurement processes, which significantly affect their overall performance. The main objective of the study was to examine the effect of strategic procurement practices on performance of commercial state corporations in Kenya. Specifically, the study sought to establish the effect of inventory management on performance of commercial state corporations in Kenya, to find out how procurement planning affects performance of commercial state corporations in Kenya. For this study, descriptive research design was utilized. The target population comprised of 46 Commercial state corporations (SCAC, 2021). The unit of analysis was therefore the 46 commercial state corporations while the unit of observation was the management employees working in the state corporations. The study therefore targeted a total of 368 respondents comprising of 46 top managers, 138 middle level managers and 184 lower-level managers. The study’s sample size was reached at using Krejcie and Morgan sample size determination formula. Using the formula, the sample size for the study was 188 respondents. This study used primary data collected using a semi- structured questionnaire. Statistical Package for Social Sciences (SPSS) was used to analyze the data. Descriptive and inferential statistics were computed and findings presented in tables and figures. The study concludes that inventory management has a positive and significant effect on performance of commercial state corporations in Kenya. In addition, the study concludes that procurement planning has a positive and significant effect on performance of commercial state corporations in Kenya. Based on the findings, the study recommends that the management of commercial state corporations in Kenya should adopt an integrated inventory management system. By implementing a comprehensive digital solution that combines real-time tracking, demand forecasting, and automated replenishment, these corporations can optimize their inventory levels, reduce excess stock, and minimize shortages.

Key Words: Strategic Procurement Practices, Inventory Management, Procurement Planning, Performance, Commercial State Corporations 


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References


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