EFFECT OF THE PUBLIC PROCUREMENT AND DISPOSAL ACT ON PROCUREMENT

EFFICIENCY IN GOVERNMENT CORPORATIONS IN KENYA

FAITH CHERONO

BPSMC01/0860/2020

A RESEARCH PROPOSAL SUBMITTED IN PARTIAL FULFILMENT OF THE

REQUIREMENT FOR THE AWARD OF DEGREE IN PURCHASING AND SUPPLIES
MANAGEMENT TO THE SCHOOL OF BUSINESS CO-OPERATIVE UNIVERSITY OF
KENYA

NOVEMBER 2023

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DECLARATION
I hereby certify that this project is my original work and has not been presented for examination
in any institution of higher learning.

Sign: _________________________ Date: ____________________

FAITH CHERONO

This research project has been submitted for examination with my approval as the university
supervisor.

Sign: _____________________________ Date: _________________

DR KAMAU MUTHONI

Lecturer,

Department of Entrepreneurship and Economics,

Cooperative University of Kenya

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DEDICATION
I dedicate this study to the entire corpus of knowledge. I also dedicate this study to my family at
large.

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ACKNOWLEDGEMENT
I am also thankful for the guidance and encouragement provided by my supervisor Dr Kamau
Muthoni, Lecturer School of Business and Economics, throughout the project. Additionally, I
extend my appreciation to Co-operative University of Kenya for providing the necessary
resources and facilities. Thank you to everyone who played a part in making this project
possible.

Above all I thank the almighty God for the strength and knowledge he has provided for me to
carry out this academic work

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TABLE OF CONTENTS

Contents
DECLARATION..............................................................................................................................................ii
DEDICATION............................................................................................................................................iii
ACKNOWLEDGEMENT.................................................................................................................................iv
TABLE OF CONTENTS...................................................................................................................................v
LIST OF FIGURES........................................................................................................................................viii
LIST OF ACCRONYMS AND ABBREVIATIONS................................................................................................ix
ABSTRACT....................................................................................................................................................x
CHAPTER ONE: INTRODUCTION...................................................................................................................1
1.1 Background of the study....................................................................................................................1
1.1.1 Global Perspective..........................................................................................................................2
1.1.2 Regional Perspective.......................................................................................................................2
1.1.3 Local perspective............................................................................................................................3
1.1.4 Public Procurement and Disposal Act (PPDA).................................................................................3
1.1.5 Procurement Efficiency...................................................................................................................4
1.1.6 Government Corporations in Kenya...............................................................................................4
1.2 Statement of the Problem.................................................................................................................5
1.3 Objectives of the study......................................................................................................................5
1.3.1 General objectives..........................................................................................................................5
1.3.2 Specific Objectives..........................................................................................................................5
1.4 Research questions............................................................................................................................6
1.5 Justification of the study....................................................................................................................6
1.6 Scope of the Study.............................................................................................................................7
CHAPTER TWO.............................................................................................................................................8
2.1 Theoretical Literature Review............................................................................................................8
2.1.1 Diffusion Theory.............................................................................................................................8
2.1.2 Agency Theory................................................................................................................................9
2.1.3 Institutional Theory........................................................................................................................9
2.2 Conceptual Framework....................................................................................................................10
2.2.1 Level of awareness, understanding and implementation of the PPDA among procurement
officials in government corporations.....................................................................................................11

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 2.2.1 Extent to which government corporations adhere to procurement procedures and guidelines in
PPDA......................................................................................................................................................12
2.2.3 Impact of the PPDA on transparency, accountability and cost effectiveness of procurement
processes...............................................................................................................................................13
2.3.1 Level of awareness, understanding and implementation of the PPDA among procurement officials
in government corporations Global........................................................................................................14
2.3.2 Extent to which government corporations adhere to procurement procedures and guidelines in
PPDA......................................................................................................................................................15
2.3.3 Impact of the PPDA on transparency, accountability and cost effectiveness of procurement.....16
2.4 Critique of Literature.......................................................................................................................17
2.5 Summary of Literature.....................................................................................................................18
2.6 Research gaps..................................................................................................................................19
CHAPTER THREE........................................................................................................................................20
3.0 Introduction.....................................................................................................................................20
3.1 Research Design...............................................................................................................................20
3.2 Population of the study...................................................................................................................20
3.3 Target Population............................................................................................................................21
3.4 Sampling Frame...............................................................................................................................21
3.5 Sample Technique and Sample Size.................................................................................................21
3.6 Data collection Instrument..............................................................................................................22
3.7 Data collection procedure...............................................................................................................22
3.8 Data analysis....................................................................................................................................22
4.1 Introduction.....................................................................................................................................24
4.2 Response Rate.................................................................................................................................24
4.3 Descriptive analysis.........................................................................................................................24
4.3.1 Descriptive analysis for Level of awareness, understanding and implementation of the PPDA
among procurement officials in government corporations.....................................................................25
4.3.2 Descriptive analysis for extent to which government corporations adhere to procurement
procedures and guidelines in PPDA......................................................................................................26
4.3.3 Descriptive analysis for Impact of the PPDA on transparency, accountability and cost
effectiveness of procurement.................................................................................................................27
4.3.4 Descriptive analysis for performance of Government corporations..............................................28
4.4 Relationship between independent and dependent variables for effect of the public procurement and
disposal act on procurement efficiency in government corporations.....................................................29
APPENDICES..............................................................................................................................................34

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APPENDIX 1: QUESTIONNAIRE...............................................................................................................34
APPENDIX 2: LIST OF FIRMS...................................................................................................................37

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LIST OF FIGURES
Figure 2.1; Conceptual Framework…………………………………………………………

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LIST OF ACCRONYMS AND ABBREVIATIONS

PPDA - Public Procurement and Disposal Act

UNDP - United Nations Development Programme

PPRA - Public Procurement Regulatory Authority

JKIA - Jomo Kenyatta International Airport

KEMSA - Kenya Medical Supplies Authority

OECD - The Organization For Economic Corporation and Development

FOSA - Front Office Service Activity

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ABSTRACT
The purpose of this study will examine the effect of Public Procurement and Disposal Act on
procurement efficiency in government corporations in Kenya. The study will be guided by the
following objectives; to assess the level of awareness, understanding and implementation of the
PPDA among procurement officials in Government Corporations, to examine the extent to which
government corporations in Kenya adhere to the procurement procedures and guidelines in the
PPDA, To analyze the impact of the PPDA on the transparency, accountability and cost
effectiveness of procurement processes in the government. This study will adopt a case study
research design to provide a deeper understanding of how specific government corporations are
affected by the PPDA. The population of interest for this study will be among the 248
Government corporations, whereby data will be collected from the Road Sector. There are three
government corporations in the road Sector, namely Kenya Rural Roads Authority, Kenya Urban
Roads Authority and National Roads and Safety Authority. The findings of this research will
contribute valuable insights to the ongoing discourse on public procurement reforms in Kenya. A
nuanced understanding of the impact of PPDA on procurement efficiency can inform
policymakers, government officials, and stakeholders about the effectiveness of the regulatory
measures in place. Additionally, this study may guide future policy adjustments or improvements
in the public procurement system, ultimately promoting good governance, accountability, and
optimal resource allocation within government corporations in Kenya.

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CHAPTER ONE: INTRODUCTION
1.1 Background of the study
Public procurement process is the purchase by state-owned entities of goods and services and is
guided by the Public Procurement and Disposal Act, 2015 (Thiankolu, 2019). The procurement
process follows a cycle of planning the whole process, initiating the procurement, confirming
adequacy of funding, advertising procurement, receiving and opening of bids, bid evaluation,
selecting supplier, notifying qualified suppliers, inspecting and receiving goods. This process
enables a firm to get the right quality of a product, for the right price, in the right quantity, at the
right time, and from the right source (Muthomi, 2019).

Public Procurement and Disposal Act 2015 outlines objectives which must be achieved, for
example maximizing economy and efficiency; promote competition, integrity and fairness;
increase transparency and accountability. A sound public procurement process should ensure that
an organization achieves value for money when procuring its needs. Efficient procurement
process is necessary for development of the economy and well utilization of scarce public
resources (Transparency International Kenya, 2017)

Efficiency in public procurement is important to Kenya due to the country's history of

corruption and mismanagement in public spending. Therefore, an analysis of the impact of the
PPDA on procurement efficiency within these entities is crucial for understanding the Act's
effectiveness in ensuring transparent, cost-effective, and accountable public procurement
(Kinyua, 2018).

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1.1.1 Global Perspective
The global marketplace has intense competition and a constant search for new and innovative
ways to reduce costs and improve performance. Hence firms continuously examine their supply
chains for opportunities to create the competitive advantage required to make businesses
successful.

One area that has been emphasized is the procurement function. While the Public Contract Law
Journal dates to 1981 and Public Procurement Law Review to 1992, both had a basis in the legal
and regulatory disciplines. It was noted that there was a difference between public procurement
and private sector procurement in the last decade (Thai and Grimm, 2001).

Public procurement systems are complex due to the many objectives that need to be achieved.
For instance, the main motive of public procurement is to serve the public through a political
purpose and the general well-being of the society unlike privately sector whose main importance
is the profit motive Makori (2011).

1.1.2 Regional Perspective

Research on the impact of public procurement legislation, such as the Public Procurement and
Disposal Act, on procurement efficiency in government corporations is not limited to a specific
country but has influence on a regional scale. The Public Procurement and Disposal Act, or
similar legislation in various African nations, plays a big role in shaping procurement practices
and transparency in the region (Krause, 2016).

The effectiveness of such laws impacts not only government corporations but also economic
development. The efficiency of government procurement processes can directly affect regional
economic stability and development, hence a concern for both national and international
stakeholders interested in promoting good governance and sustainable economic growth in the
region (UNDP, 2020).

Many countries across Africa and other regions have implemented similar procurement laws, and
the findings of this research can offer valuable insights to neighboring nations (Aigbavboa,
2016). These insights can facilitate comparative analyses, encourage the sharing of best
practices, and inform the development or revision of procurement legislation in other regional
contexts.

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1.1.3 Local perspective
The Public Procurement and Disposal Act, enacted in 2015, was aimed at enhancing
transparency, accountability, and efficiency in public procurement processes in Kenya. Local
government corporations and agencies have been working under the framework of this Act for
over a decade.

The country has experienced issues related to procurement mismanagement and corruption in
the past (Okutoyi, 2018). By studying the Act's effect on procurement efficiency, local
stakeholders can gain insights into the practical implications of the legislation, which can inform
future policy adjustments and institutional reforms.

This research can provide insights into whether the Act has succeeded in increasing efficiency
and curbing corruption or if there are areas which need improvement, aligning with Kenya's
commitment to good governance and sustainable development (Kenya Vision 2030). It also has
the potential to support the Kenyan government in its ongoing efforts to enhance transparency,
accountability, and good governance in public procurement, aligning with its national
development goals.

1.1.4 Public Procurement and Disposal Act (PPDA)

The Public Procurement and Disposal Act, enacted in Kenya in 2015, provides the legal
framework for the procurement and disposal of public assets and services in Kenya. It establishes
rules, procedures, and guidelines governing how government corporations purchase goods and
services. Various procurement methods, evaluation criteria, and processes are outlined in the act,
ensuring transparency and competitiveness in government procurement (Public Procurement and
Disposal Act, 2015).

One of the key functions of PPDA is to promote efficiency, fairness, and accountability in the
procurement process. It sets out principles for competition, value for money, and non-
discrimination, which impact how public funds are spent. Additionally, the act introduces
mechanisms for overseeing and enforcement, including the establishment of the Public
Procurement Regulatory Authority (PPRA), which ensures compliance with the act (Public
Procurement and Disposal Act, 2015).

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The act's guidelines and the extent to which they are followed by have a direct impact on the
efficiency and effectiveness of procurement processes in government corporations, which, in
turn, can influence resource allocation, public trust, and governance in Kenya's public sector

1.1.5 Procurement Efficiency

Procurement efficiency is the ability of government corporations in Kenya to acquire goods and
services in a timely, cost-effective, and transparent manner while adhering to legal and
regulatory requirements. It is important in assessing how well public funds are managed and
allocated, as efficient procurement processes can lead to cost savings and better service delivery
(Muga & Mutea, 2018).

Efficiency in procurement is important for government agencies as it impacts the allocation of

public resources and the delivery of services to citizens. It ensures that taxpayer money is used
wisely and that public procurement processes are transparent and free from corruption, aligning
with the principles of good governance (World Bank, 2014).

Measurement of procurement efficiency involves various indicators such as procurement cycle

times, cost savings, compliance with legal provisions, and the quality of goods and services
acquired. These indicators are critical in evaluating the effectiveness of the Act in promoting
efficient procurement practices in government corporations in Kenya (Ondabu et al., 2019).

1.1.6 Government Corporations in Kenya

Government-owned entities play a big role in the country's economy and public administration
and are responsible for delivering essential services and managing public assets (World Bank,
2017). Government corporations in Kenya range various sectors, including healthcare, energy,
transportation, and finance, and are important in achieving government objectives and serving
the public.

Understanding how these government corporations operate within the framework of the Public
Procurement and Disposal Act is crucial for improving governance and transparency in Kenya's
public procurement systems.

This approach allows for in depth examination of procurement practices at the organizational
level, facilitating a factual understanding of the Act's effects on different government entities
such as county governments, parastatals like, schools and many others.

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1.2 Statement of the Problem
The Public procurement processes is complex because of the multiple objectives it strives to
achieve together with multiple regulatory policies and bodies it has to adhere to. While
streamlining procurement processes to achieve each objective, PPDA has a role in ensuring the
tax payers enjoy value for money, achieving efficiency and effectiveness, ensuring fair
competition amongst the suppliers, ensuring accountability and transparency, ethics which
(Commonwealth Procurement Guidelines, 2005)

Inefficiency in government procurement processes in Kenya has been a problem shown by

challenges in implementing the Public Procurement and Disposal Act. The Act has faced issues
like, corruption, slow decision-making, and inadequate monitoring and evaluation mechanisms
which has hindered its effectiveness in improving procurement efficiency in government
corporations Kiptum and Wawire (2019). This leads to budgetary concerns and also inequitable
allocation of public resources which affects the overall governance and service delivery in the
country. The entire procurement process also needs to be carefully crafted to avoid long lead-
time, inadequate resources, wrongful award of contracts, cancellation of contracts, excess or
insufficient stock.

Some of the major scandals due to inefficiency in public procurement include the JKIA airport
expansion project and the KEMSA scandal during COVID just but to mention a few. This study
therefore intends to examine the effect of Public Procurement and Disposal Act on procurement
efficiency in Government corporations in Kenya.

1.3 Objectives of the study

1.3.1 General objectives
The general objective of this study is to examine the effect of the public procurement and
disposal act on the procurement efficiency in Government corporations in Kenya.

1.3.2 Specific Objectives

1. To assess the level of awareness, understanding and implementation of the Public
Procurement and Disposal Act among procurement officials in government corporations
in Kenya.
2. To examine the extent to which government corporations in Kenya adhere to the
procurement procedures and guidelines in the Public Procurement and Disposal Act.

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 3. To analyze the impact of the Public Procurement and Disposal Act on the transparency,
accountability and cost effectiveness of procurement processes in government
corporations.

1.4 Research questions.

1. What is the level of awareness, understanding and implementation of the Public
Procurement and Disposal Act among procurement officials in government corporations
in Kenya?
2. To what extent do government corporations in Kenya adhere to the procurement
procedures and guidelines in the Public Procurement and Disposal Act?
3. What is the impact of the Public Procurement and Disposal Act on the transparency,
accountability and cost-effectiveness of procurement processes in government
corporations?

1.5 Justification of the study

Government corporations in Kenya will benefit from the study as it will provide them with
knowledge to enhance their procurement practices and adherence to legal regulations. It can also
help them streamline their procurement processes, reduce inefficiencies, and increase
transparency, leading to improved resource allocation and cost-effectiveness (Mbugua et al.,
2018

Procurement professionals in Kenya will benefit as it provides them with valuable insights into
how the legal framework impacts their daily operations, enabling them to enhance their
procurement practices while complying with relevant regulations (Kenya Institute of Supplies
Management, 2020

Researchers and academics will be able to conduct studies and analyze data that contribute to an
understanding of the challenges in public procurement in Kenya, hence increasing their academic
knowledge on public policy, governance and procurement practices (Smith, 2020). Such insights
are important for the development of recommendations backed by evidence and policy proposals
that can enhance procurement efficiency and transparency.

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1.6 Scope of the Study
The independent variable is the Public Procurement and Disposal Act, which in this case
represents the regulatory framework governing procurement practices in Kenya. The dependent
variable is procurement efficiency which indicates the performance measure of interest, showing
how effectively government corporations conduct their procurement operations to achieve goals.
The unit of analysis in this study is government Corporations in Kenya representing an agency or
company registered under the government's ownership, whose aim is to offer a service to the
public and generate revenues to fund its operations. The geographical scope is focused
exclusively on Kenya, as the study aims to assess the Act's effects within the national
surrounding.

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CHAPTER TWO
2.0 INTRODUCTION

2.1 Theoretical Literature Review

The theoretical literature review examines existing academic research and theoretical
frameworks related to public procurement, governance, and efficiency in government
organizations. It seeks to identify relevant theories, concepts, and models to provide a
comprehensive understanding of how the Act may influence procurement processes and
efficiency in Kenyan government corporations.

2.1.1 Diffusion Theory

Diffusion theory, as proposed by Rogers (2003), proposes that adoption and spread of
innovations within a social system can be explained by the rate at which individuals and
organizations become aware of, understand, and implement these innovations. The awareness
and understanding of the Act’s components are significant factors influencing its
implementation. It found that the Acts adoption is influenced by the diffusion, with early
adopters demonstrating higher levels of understanding and successful implementation, thereby
shedding light on the importance of awareness and understanding in the Act’s practical
application (Mugo,2017).

Diffusion theory provides a framework for understanding how innovations spread and gain
acceptance. This theory helps identify factors that can promote awareness and understanding
among procurement officials. However, the theory overlooks the influence of political,
economic, and cultural factors that can significantly impact the implementation of innovations
(Mansfield, 2015). The theory should be used together with other frameworks and considerations
for a more comprehensive analysis of public policy adoption and implementation.

This theory helps to explain how and why certain elements of the Act may spread or stall within
the procurement system. Early adopters demonstrated a greater understanding and successful
implementation. This theory enables identification factors influencing the diffusion of
innovations, thus shedding light on the dynamics of awareness, understanding, and the adoption
process in the context of public procurement policy, offering valuable insights for policymakers
and practitioners in Kenya. (Mugo 2017)

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2.1.2 Agency Theory
Agency theory is a concept in organizational theory that explains the relationship between
principals (those who delegate tasks) and agents (those who perform tasks). The Act serves as
principal, delegates’ procurement responsibilities to its officials; agents. In this case agents may
pursue their self-interest rather than the principal’s objectives and this conflict of interests leads
to non-compliance with procurement regulations. Government agencies might prioritize personal
gain and corrupt practices, over adherence to procurement guidelines, leading to inefficiencies
and compromised transparency in public procurement processes (Gathungu and Karanja,2019)

The theory highlights the potential misalignment of interests and the risk of opportunistic
behavior among agents. This insight allows policymakers and stakeholders to develop strategies
to address these challenges and improve transparency in public procurement practices. However,
the theory oversimplifies other factors influencing procurement behaviour, as it tends to focus
primarily on the agency problems (Kabir and Islam, 2015)

By recognizing the principal-agent relationship within government organizations, it provides a

framework for examining how information imbalance and misaligned interests may affect
adherence with procurement rules, shedding light on factors that hinder transparency and
efficiency of procurement processes. The theory allows researchers to look into the problems and
design solutions to improve the overall compliance and effectiveness of public procurement, in
line with the objectives of the Public Procurement and Disposal Act (Ondabu & Aosa, 2018).

2.1.3 Institutional Theory

Institutional theory is an organizational theory that explores how organizations conform to
external institutional pressures. The Act serves as a regulatory institution, shaping procurement
practices on government corporations hence promotes transparency and accountability and also
enhances cost-effectiveness by reducing the risk of inefficiencies and irregularities. It establishes
an environment where adherence to procurement procedures is seen as legal aligning government
corporations with the guidelines and procedures thus improving the effectiveness of procurement
processes in Kenya (Odhiambo, 2016)

This theory highlights the Act’s role in standardizing best practices, which enhances
transparency, accountability, and conformity with global norms, Odhiambo (2016). This
contributes to improved efficiency and effectiveness in procurement processes, reducing the risk

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of irregularities. However, strict adherence to institutional norms may hinder flexibility and
innovation, which might do government corporations from adapting to evolving change. The
actual enforcement and effectiveness of the Act can vary, with potential gaps in implementation (
Cheluget and Karani, 2017).

This theory provides a framework for understanding how formal regulations, such as the Act,
shape the behaviour of organizations by creating established norms and practices. It helps in
evaluating how the institutionalization of procurement procedures and guidelines affects
transparency, accountability, and efficiency within government corporations. The theory is
important for assessing the long-term impact of the Act on procurement processes, making it a
valuable perspective for this study (Odhiambo, 2016).

2.2 Conceptual Framework

Conceptual frame work is a hypothesized model under study showing the relationship between
the dependent and independent variable. The main objective of this study was to examine the
effect of PPDA on Procurement efficiency in government corporations in Kenya. Based on the
objective of the study the following conceptual framework model was framed as my discussed in
literature review parts. Thus the following conceptual model was framed to summarize the main
focus and scope of this study in terms of variables included.

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 Level of awareness, understanding and
implementation of the PPDA
.Regional |Disparities
.Capacity building and Training
. Political Will

Procurement Efficiency
Extent to which government
corporations adhere to procurement .Lead times
procedures and guidelines in PPDA
.Staff productivity
.Supervision
.Cost Reduction
.Leadership
.Internal Controls
Impact of the PPDA on transparency,
accountability and cost effectiveness
. Openness in decision-making
.Resolution of procurement conflict
.Value for money

This is FIGURE 2.1 Conceptual Framework

2.2 Discussion of Variables

2.2.1 Level of awareness, understanding and implementation of the PPDA among

procurement officials in government corporations
Regional disparities can affect the level of awareness, understanding, and implementation of the
PPDA. Regional disparities, in terms of infrastructure, resources, and economic development,
result in varying levels of access to information and training opportunities related to the Act. For
instance, procurement officials in more developed regions have better access to training and
resources, leading to more awareness and understanding while officials in marginalized regions
challenges in accessing such resources, leading to lower awareness and understanding. This leads
to disparities in the effective implementation of the Act across regions (Mwangi and Otieno,
2019).S

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Capacity building and training influences the Act’s level of awareness, understanding, and
implementation such that adequate training equips procurement officials with the necessary
knowledge and skills to comprehend and effectively implement the Act’s provisions.
Comprehensive training programs positively impact officials’ understanding and awareness of
public procurement regulations, resulting in improved implementation. However, lack of training
opportunities leads to deficiencies hindering the efficient execution of the Act (Ng’ang’a, 2016)

The commitment and support of political leaders and government authorities are essential for the
effective enforcement and implementation of the Act. It shapes the prioritization of training
programs and resources dedicated to educating procurement officials about the Act, affecting
their awareness and understanding. Additionally, political leaders can use their influence to
ensure compliance and accountability in procurement practices, thus directly impacting
implementation (K’Obonyo and Ondabu (2015)

2.2.1 Extent to which government corporations adhere to procurement procedures

and guidelines in PPDA
Supervision influences adherence to procurement procedures and guidelines outlined in the Act
such that effective supervisory mechanisms positively impacts compliance. Active monitoring
and supervision enhances adherence to procurement regulations; it prevents non-compliance
(Mwenda and Odera, 2015). Weak oversight mechanisms creates opportunities for corruption
and mismanagement in public procurement hence the critical role of supervision in upholding
adherence to the Act’s guidelines (Nyabwanga, 2018).

Effective leadership that emphasizes transparency, accountability, and ethical conduct fosters
compliance. Leadership that enforces adherence to regulations, and promotes ethical behavior
positively influences compliance with procurement (Mburu and Ondabu, 2018). Conversely,
weak or corrupt leadership leads to deviations from the PPDA’s guidelines. Therefore, leadership
qualities and behaviours, such as integrity and commitment to good governance, are pivotal in
determining the level of adherence to procurement procedures. Transparency International
Kenya 2019)

Effective internal controls, including auditing, monitoring, and oversight mechanisms prevents
non-compliance and corruption within procurement processes. These controls create a climate of
trust, deter malpractice, and foster the efficient use of public funds, thereby supporting the goal

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of adherence to procurement guidelines. They ensure transparency, accountability, and the
proper allocation of resources, ultimately reducing the likelihood of deviations from the PPDA
(Ombati and Riro, 2015). Internal controls contribute procurement efficiency.

2.2.3 Impact of the PPDA on transparency, accountability and cost effectiveness of

procurement processes
Openness in decision-making enhances transparency, accountability, and cost-effectiveness in
procurement processes within government corporations in Kenya. A transparent and open
decision-making process, as emphasized by PPDA’s principles, fosters trust and scrutiny,
thereby promoting accountability and deterring corruption. When stakeholders, including the
public, have access to information about procurement decisions, it becomes easier to detect
irregularities, inefficiencies, and favouritism in procurement processes (Kipkemboi and Sang,
2020).

An efficient dispute resolution mechanism provided by the PPDA ensures that any procurement-
related conflicts are addressed promptly and fairly. This, in turn, promotes transparency as
disputes are resolved openly and accountably, reducing opportunities for corruption or
favouritism (Nyaanga and Riro, 2018). Furthermore, effective dispute resolution reduces the time
and costs associated with procurement, as demonstrated in the (World Bank, 2017), contributing
to the Act’s goal of cost-effectiveness.

The Act emphasizes on ensuring that public funds are used efficiently and that taxpayers receive
the best value for their money. This focus on value for money encourages transparency and
accountability by necessitating a rigorous and competitive procurement process (Obiero and
Munyoki, 2016). The Act’s emphasis on cost-effectiveness is instrumental in curbing wasteful
spending contributing to the responsible allocation of resources (Institute of Economic Affairs,
2017). The Act’s alignment with value for money principles enhances transparency,
accountability, and cost-effectiveness, ensuring procurement efficiency government corporations

2.3 Empirical Literature Review

Empirical literature review is a systematic analysis of existing research studies, data, and reports
to assess the actual impact of the act on procurement practices and outcomes. This review aims

13
to provide evidence-based insights into whether the act has improved procurement efficiency,
identifying trends and areas where further research or policy adjustments may be needed.

2.3.1 Level of awareness, understanding and implementation of the PPDA among

procurement officials in government corporations Global
This extensive international study’s main goal was to examine, using data from several nations,
the effects of public procurement legislation’ awareness, comprehension, and application on
organizational performance. Using a mixed-methods approach that included interviews,
questionnaires, and document analysis, the study included organizations from a variety of
industries and sectors in the United States, Canada, the United Kingdom and India.. The results
showed significant differences between these nations' levels of awareness of and adherence to
public procurement laws. This study highlights the critical role that knowledge, comprehension,
and efficient application of public procurement regulations play in supporting organizational
performance. It also highlights the need for coordinated efforts, especially in nations with weak
regulatory knowledge, to improve awareness and compliance through educational programs and
streamlined procedures, which will ultimately promote improved overall performance and
socioeconomic development (Kipkemoi, R. T.2017)

Research was conducted by Robert Komakech on Public procurement in developing countries;

principles and required skills in 2018. The general objective of the study was to examine
principles and required professional skills in public procurement in developing countries across
Africa. The research design used was survey research and the population gap was public
procurement departments in Uganda and Rwanda. The author concluded that achieving best
procurement practices depends on leadership and competence of procurement stallholders. As a
result procurement officers should understand all procurement objectives and principles for
efficiency purposes.

A research on factors affecting implementation of Public Procurement Act in Sacco Societies in

Kenya by Mark Mose in 2015. The general objective of the study was to assess factors affecting
implementation public procurement in Sacco’s in Kenya where the main variables included
strategic planning, enforcement and organizational culture. Through a descriptive research
design the study targeted procurement officers and general managers working with Sacco
Societies which have FOSA. The findings revealed that 55% of the respondents believe that the

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impact of the regulator in Sacco’s is high. It was recommended that procurement process should
uphold integrity and ensure that there are no malpractices which requires public bodies to base
decisions on accurate information and ensure that requirements are being met.

2.3.2 Extent to which government corporations adhere to procurement procedures

and guidelines in PPDA
An academic study was conducted by Heliyon in 2020 on strategic public procurement
regulatory compliance model with mediating effect of ethical behavior in Canada. The objective
of the study was to examine effects of ethical behavior on the influence of professionalism,
familiarity, enforcement and resistance to political pressure on public procurement regulatory
compliance. A quantitative research design was used using 125 procurement officers as a sample
group. The study established the effect of ethical behaviour on compliance. The study implied
that ethical behaviour of public procurement officers should be a strategic point of concern by
both policymakers and professional bodies.

An academic study was conducted by Akankwatsa Sam in 2012 on Moral intensity, moral
compliance with the Ugandan Public procurement law by procurement personnel; A case study
of Ugandan Central government PDEs. The general objective was to examine the level of moral
intensity and moral competence of the Ugandan public procurement personnel, examining the
relationship between moral Intensity and moral competence of the Ugandan public procurement
personnel and examining the predictive potential of moral intensity, moral competence and
compliance with the Ugandan public procurement personnel. The study adopted a descriptive
and correlation research design. The study revealed that moral intensity and moral competence
were significant predictors of procurement personnel compliance with the Ugandan public
procurement law in central government Procuring and Disposing Entities. The study therefore
recommended that, Procuring and Disposing Entities need to build moral intensity and moral
competence programmes for the existing procurement personnel.

Another academic study was conducted by Kaburu Wanjiru in 2015 on effect of PPDA on
Perfomance of Public procurement function; A case study of KEMSA. The main objective of the
study was to examine the success and failure on adoption of PPDA on performance of
procurement department KEMSA.The study adopted survey research design and it covered 70%
of employees in procurement entity and user department, target employees under a sample frame

15
of 230 staff of various departments in KEMSA. Research revealed improper procurement
planning was 65% linked to lack of consolidated procurement plan that did not match with
budgetary framework. Although, PPDA improved procurement and lead time.

2.3.3 Impact of the PPDA on transparency, accountability and cost effectiveness of

procurement
OECD performed a study in 2011 on transparency in public procurement in Government. Data
were collected by the OECD 2010 Survey and respondents to the survey were OECD country
officials responsible for procurement at the central government level. A total of 33 OECD
members, as well as Brazil, Egypt and Ukraine responded to the survey. The research
highlighted the significance of transparency and accountability in public procurement to prevent
fraud and corruption, with a focus on the availability of information, citizen participation, and
review mechanisms. Hence variations in the types of information made public and citizen
involvement across OECD countries, with some countries, like Japan and Korea, being more
proactive in these areas.

A research was conducted by Dr. Kofi Osei-Afoakwa to answer the question Does the Public
Procurement Law of Ghana promote accountability? Abstract Models of public procurement
accountability
properties were used to analyse the contents of the Public Procurement Law of Ghana (Act
663, 2003) to determine the presence of such properties in it. The findings on the existence of
such properties were used to test the capacity of the law to ensure accountability in the public
procurement system of Ghana. It was concluded that, the Act has the properties of a standard
law designed to ensure accountability in the public procurement system although some
limitations of the law with regards to its capacity to ensure public procurement accountability
have been identified for improvement. It therefore becomes imperative for the review of the law
on public procurement in Ghana so that it can enable better accountability.

A research was conducted by Jane N. Nene in 2018 on the factors affecting accountability and
effectiveness of procurement process in the public sector; A case study ministry of Transport.
The general objective was to assess accountability and effectiveness of procurement processes in
Kenyan public sector. Descriptive design was used in executing the study. Population was

16
employees in the procurement department in ministry of transport. The research found that key
drivers in procurement performance are procedures, staff qualifications and ICT. It was
recommended the reforms in the department be accelerated with view kf enhancing
accountability and effectiveness.

2.4 Critique of Literature

Knowledge, comprehension, and efficient application of public procurement regulations play a
big role in supporting organizational performance. This underscores the importance of good
governance and adherence to laws in enhancing organizational outcomes. This suggests that
there may be challenges in achieving consistent and effective implementation of these
regulations across different countries, which could potentially hinder organizational performance
and equitable economic development. When procurement officers in developing countries like
Uganda and Rwanda demonstrate strong leadership and competence, it leads to improved
procurement practices and efficiency, which is a positive outcome for public procurement
however despite efforts to improve procurement practices, there are still challenges and
inefficiencies in public procurement processes in developing countries, which might hinder
effective service delivery and resource utilization. The study shows that the act brings a positive
influence to procurement processes however despite the perceived high impact of the regulator,
there are issues related to integrity and malpractices in the procurement process, indicating that
regulatory impact alone may not completely address these issues.

When public procurement officers exhibit ethical behavior, it can enhances compliance with
regulations, promoting fairness and transparency in the process. Moral intensity and competence
were significant predictors of procurement personnel compliance with the Ugandan public
procurement law, which suggests that by improving these aspects, compliance with the law can
be enhanced. Adoption of the PPDA improved procurement and lead time, which suggests that
the implementation of this act had a positive impact on the efficiency of the procurement
department at KEMSA. The study revealed that improper procurement planning was linked to
lack of consolidated procurement plans that did not match with the budgetary framework.

The study highlights the significance of transparency and accountability in public procurement; it
prevents fraud and corruption. Variations in the types of information made public and citizen

17
involvement across OECD countries indicate a potential lack of uniformity and consistency in
ensuring transparency and accountability which lead to challenges in implementing effective
measures to prevent fraud and corruption in public procurement. The study by Dr. Kofi Osei-
Afoakwa found that the Public Procurement Law of Ghana (Act 663, 2003) has properties of a
standard law designed to ensure accountability in the public procurement system. However there
are limitations in the law's capacity to ensure public procurement accountability, indicating that
improvements are needed in the law to enhance accountability in Ghana's public procurement
system. Identification of key drivers of procurement performance, help the public sector
organizations in Kenya improve their procurement processes, leading to increased accountability
and effectiveness. However the study doesn’t provide specific details on how the recommended
reforms should be accelerated or implemented, making it challenging for the Ministry of
Transport to translate the recommendations into practical actions without further guidance.

2.5 Summary of Literature

The Public Procurement and Disposal Act (PPDA) of 2015 in Kenya has been a pivotal piece of
legislation aimed at enhancing procurement efficiency in government corporations. The
theoretical literature review on this topic reveals several key aspects that are relevant to
understanding the impact of the PPDA on procurement efficiency.

PPDA emphasizes the principles of transparency, competition, and accountability, which align
with the literature’s view that transparent and competitive procurement processes can lead to
more efficient outcomes (Arrowsmith, 2011). This is expected to reduce favouritism and
corruption, ultimately leading to cost savings for government corporations.

However, there is also theoretical literature pointing to potential challenges, particularly in the
form of bureaucratic processes and delays in procurement processes due to the complex
regulatory requirements introduced by the PPDA (Arrowsmith, 2011).Therefore the Act may
introduce inefficiencies in the short term as government agencies adapt to the new rules and
regulations. Therefore, the overall impact of the PPDA on procurement efficiency in government
corporations is dependent between its transparency and competition benefits and the potential for
initial implementation challenges.

18
2.6 Research gaps
Firstly, there is a need for research that goes deeper into the specific challenges and factors that
hinder the consistent and effective implementation of regulations in different countries, as this
variability may have significant implications for organizational performance and economic
development. Secondly, further research is required to identify and address the persistent
challenges and inefficiencies in public procurement processes in developing countries, with a
focus on how these issues affect service delivery and resource utilization. Lastly, additional
studies should investigate the root causes and solutions related to integrity and malpractices in
the procurement process, recognizing that regulatory impact alone may not be sufficient to fully
mitigate these concerns.

While the study identifies problems such as improper procurement planning and misalignment
with budgetary frameworks, it falls short in offering concrete and practical solutions or strategies
to rectify these issues Further research should aim to bridge this void by offering detailed,
implementable suggestions for addressing these identified challenges in a more actionable and
results-driven manner.

There is a gap in understanding the variations in the types of information made public and citizen
involvement across OECD countries, which suggests a potential lack of uniformity in
transparency practices. Investigating these variations and their implications for fraud and
corruption prevention measures could be a valuable research avenue. Second, there is a need to
explore the specific limitations in public procurement laws that hinder accountability, as this
would provide insights into areas requiring legal improvements. Additionally, there is a gap in
the study's lack of specific guidance on implementing recommended reforms, emphasizing the
necessity for research on practical strategies for reform implementation in public procurement
systems.

19
CHAPTER THREE
RESEARCH METHODOLOGY

3.0 Introduction
Research methodology is the systematic framework employed to conduct research, it guides the
researcher through the process of collecting, analyzing and interpreting data. It explains the
scope of the research, the type of data to be collected, the research design; tools for collecting the
data and the analysis of the collected data. This chapter will also identify the target group and
size of the population.

3.1 Research Design

Research design is a structured plan that outlines the systematic collection, analysis, and
interpretation of data to address a specific research problem (Mugenda, 2019). Common types of
research designs include descriptive, cross-sectional, case study approach and mixed-methods
designs, each serving distinct purposes in investigating research questions (Creswell, 2014). This
study will adopt a case study research design to provide a deeper understanding of the complex
issues within the specific government corporations under investigation. By looking into a
specific government corporation impacted by the PPDA, the study can offer informed insights
into the implementation and outcomes of the legislative framework. Case studies are valuable for
investigating complex issues within their real-world context, providing a rich source of data to
explore the different dimensions of procurement efficiency (Yin, 2018).

3.2 Population of the study

Population is regarded as the total number of elements, objects or units that display common
features and can be used to investigate a particular problem (Novikov and Novikov, 2013). It is a
set of items that may be sampled to make conclusion about a specific problem under
investigation (Kombo and Tromp, 2006). According to Creswell (2013) population is divided
into finite populations (refers to specific, countable and limited groups from which data is
collected) and infinite populations (refers to a theoretically extremely large number of elements
in a research). This study will use finite populations. Kenya has 248 Government Corporations,
out of which 46 are commercial enterprises, and 201 are non-commercial entities (National
Treasury, 2023). Among the 248 government corporations there’s the road sector which this
study will use as the case study.

20
3.3 Target Population
A target population refers to all the members who meet the criteria specified for a research
investigation (Alvi, 2016). It must be a complete subset of the population of interest – members
of the target population must also be described by the boundaries of the population of interest
(Casteel & Bridier, 2021). Target population may be grouped into demographic, behavorial and
consumer target population (Kenneth, 2013). This study will use demographic population; it will
include individuals directly involved in government procurement processes. Since not all
employees will be selected but specific employees working in procurement department, the study
will use demographic data. The target population of this study will be employees working in the
Procurement Department of three government owned corporations in the road sector (Kenya
Rural Roads Authority, Kenya Urban Roads Authority and National Transport and Safety
Authority).

3.4 Sampling Frame

A sampling frame is a list or source that serves as the basis for selecting a sample for a research
study. It could be a roster, directory, or any defined population from which the sample is drawn
(Babbie, 2016). There are two types of sampling frame, namely theoritical and actual sampling
frames (kothari and Garg, 2014). The theoritical frame deals with the entire target population
while the actual frame comprises the list from which the sample is derived. The unit of analysis
is government owned corporations in Kenya while the unit of observation are employees
working in the procurement department in the government owned corporations operating in the
road sector.

3.5 Sample Technique and Sample Size

A sampling technique is a method used to select a subset of individuals or items from a larger
population for the purpose of making inferences about the population based on the characteristics
of the sample. (Creswell & Creswell, 2017). There are two major categories of sampling
methods; probability sampling methods (subjects in the target population have equal chances to
be selected in the sample) and non-probability sampling methods (sample population is selected
in a non-systematic process that does not guarantee equal chances for each subject in the target
population). Examples of probability saplings are simple random, stratified, systematic while
examples of non-probability sampling are convenience, purposive and saturated sampling
(Tehran,2017).This study will use saturated sampling design since it is justified in a case study

21
because the population is homogenous and small that is made of respondents from similar
management function and therefore allows all elements to be included in the sample. Sample size
determination is the technique of electing the number of observations to include in a sample
(Masaku micah, 2014). The sample size will compromise 45 procurement professionals in the
road sector corporations to represent the 248 government corporations.

3.6 Data collection Instrument

A data collection instrument is a tool or method used to gather information systematically during
a research study. According to Dörnyei (2007), data collection instruments play a crucial role in
acquiring research data. Examples of data collection instruments include surveys, interviews,
observations, questionnaires and document analysis (Creswell & Creswell, 2017). The data for
the study will be collected using a structured survey questionnaire. The Questionnaire approach
allows collection of quantitative data that can be easily analyzed to draw statistical inferences
(Jones Et al., 2013). It also promotes the anonymity of data, which is an important ethical
consideration in research.

3.7 Data collection procedure

Data collection procedure refers to the process of collecting data from the target population
(Hamed 2021). Questionnaires can either be structured, unstructured or semi-structured, the
procedure of collecting data that you are predetermined to use (beck, 2016). The data will be
collected using “drop and pick” method. The questionnaires will be dropped and picked up later
from the respondents. The participants will be informed of the study’s purpose, importance, and
associated risks and benefits of Participation. The voluntary nature of the participation and
freedom of withdrawal at any point of the study without any consequences will also be
communicated to the participants. The questionnaire will be developed in line with the research
objectives to evaluate the effect of PPDA in government corporations in Kenya. It will consist of
three sections beginning with the consent form requiring the participants to provide Consent to
participate in the study.

3.8 Data analysis

Data analysis is the process of converting the gathered data to meaningful information. Different
techniques such as modeling to reach trends, relationships, and therefore conclusions to address
the decision-making process are employed in this process (Start, 2006). The main types of data
analysis methods include descriptive, exploratory, inferential, predictive and explanatory

22
(Taherdoost, 2021). This study will adopt descriptive statistics analysis such as frequency
distributions and percentages to summarize basic features of the data in the study hence it will
provide a concise summary of key metrics, such as mean procurement times or expenditure
distribution, offering a clear snapshot of the overall efficiency landscape.

23
CHAPTER FOUR: FINDINGS AND DISCUSSIONS

4.1 Introduction
The chapter presents the results of the study. The discussion of the study results is also provided
in the chapter.
4.2 Response Rate
The response rate for the study was presented in Table 4.1.
Table 4.1: Response Rate
Frequency Percent
Returned 35 78
Unreturned 10 22
Total 45 100

24
A total of 45 questionnaires were administered. However those that were filled
completely and returned were 35 translating to a response rate of 78%. Only 11
questionnaires were unreturned. This was a good response rate that was
favorable for the study
4.3 Descriptive analysis
The descriptive analysis used to describe the data were the mean and the
standard deviation. A Likert scale of 1 to mean strongly disagree, 2 to mean
disagree, 3 neutral, 4 agree and 5 strongly agree was used.

4.3.1 Descriptive analysis for Level of awareness, understanding and

implementation of the PPDA among procurement officials in government
corporations
The descriptive results for level of awareness, understanding and implementation of the PPDA
among procurement officials in government corporations were presented in Table 4.2.
Table 4.2: Descriptive statistics for Level of awareness, understanding and implementation
of the PPDA among procurement officials in government corporations

N Mean Std.
Deviation
Our corporation has been using regional disparities to evaluate 35 4.60 0.819
PPDA awareness, understanding, and implementation

25
Our corporation has been using capacity building & training to 35 4.49 0.788
evaluate PPDA awareness, understanding, and implementation.

Our corporation has been using political will to evaluate PPDA 35 4.29 0.734
awareness, understanding, and implementation

Valid N (list wise) 35

From the results presented in table 4.2 the statement our corporation has been using regional
disparities to evaluate PPDA awareness, understanding, and implementation had mean of 4.60
and a standard deviation of 0.819. The statement that our corporation has been using capacity
building & training to evaluate PPDA awareness, understanding, and implementation had a mean
of 4.49 and a standard deviation of 0.788. Additionally the statement that our corporation has
been using capacity building & training to evaluate PPDA awareness, understanding, and
implementation had a mean of 4.29 and a standard deviation of 0.734.
This indicated that that most of the respondents agreed to the statements stating our corporation
has been using regional disparities to evaluate PPDA awareness, understanding, and
implementation. The findings agreed with those of Mwangi (2019) who found that regional
disparities played a crucial role in evaluating PPDA awareness, understanding, and
implementation. However, these findings contradicted with those of Ondabu (2015) who found
that political will played a major role in evaluating PPDA awareness, understanding, and
implementation. From the findings, it can be concluded that regional disparities was essential in
evaluating PPDA awareness, understanding, and implementation.

4.3.2 Descriptive analysis for extent to which government corporations adhere to

procurement procedures and guidelines in PPDA
The descriptive results for extent to which government corporations adhere to procurement
procedures and guidelines in PPDA were as in Table 4.3
Table 4.3 Descriptive analysis for extent to which government corporations adhere to
procurement procedures and guidelines in PPDA
N Mean Std. Deviation
Our corporation has been using supervision to assess their 35 4.37 0.755
adherence to Public Procurement Act guidelines.
Our corporation has been using leadership to assess their 35 4.23 0.719

26
adherence to Public Procurement Act guidelines
Our corporation has been using internal controls to assess their 35 3.94 0.651
adherence to Public Procurement Act guidelines
Valid N (list wise) 35

The results showed that the statement our corporation has been using supervision to assess their
adherence to Public Procurement Act guidelines had a mean of 4.37 and a standard deviation of
0.755. Furthermore the statement our corporation has been using leadership to assess their
adherence to Public Procurement Act guidelines had a mean of 4.23 and a standard deviation of
0.719. Additionally our corporation has been using leadership to assess their adherence to Public
Procurement Act guidelines had a mean of 3.94 and a standard deviation of 0.651.
The results revealed that most of the respondents agreed to our corporation has been using
supervision to assess their adherence to Public Procurement Act guidelines. The findings agreed
with the findings of Odera (2015) who revealed that supervision played a major role in assessing
their adherence to Public Procurement Act guidelines. However these findings contradicted with
those Mburu (2018) of who found that internal controls was the most essential in assessing their
adherence to Public Procurement Act guidelines. The findings concluded that supervision was a
major component in assessing their adherence to Public Procurement Act guidelines.

4.3.3 Descriptive analysis for Impact of the PPDA on transparency, accountability

and cost effectiveness of procurement
Table 4.4 showed the descriptive analysis results for impact of the PPDA on transparency,
accountability and cost effectiveness of procurement
Table 4.4: Descriptive analysis for impact of the PPDA on transparency, accountability and
cost effectiveness of procurement
N Mean Std. Deviation
Our corporation has been using openness in decision making to 35 4.02 0.669
analyze Public Procurement Act's impact on transparency,
accountability, and cost-effectiveness of government procurement. 35 3.95 0.653
Our corporation has been using resolution of procurement conflict to
analyze Public Procurement Act's impact on transparency,
accountability, and cost-effectiveness of government procurement 35 3.80 0.623
Our corporation has been using value for money to analyze Public

27
Procurement Act's impact on transparency, accountability,
and cost-effectiveness of government procurement
Valid N (list wise) 35

The results revealed that the mean and standard deviation for the statement our corporation has
been using openness in decision making to analyze Public Procurement Act's impact on
transparency, accountability, and cost-effectiveness of government procurement was 4.02 and
0.669 respectively. The results also revealed that mean and the standard deviation for the
statement our corporation has been using resolution of procurement conflict to analyze Public
Procurement Act's impact on transparency, accountability, and cost-effectiveness of government
procurement were 3.95 and 0.653 respectively. Finally the statement our corporation has been
using value for money to analyze Public Procurement Act's impact on transparency,
accountability, and cost-effectiveness of government procurement had a mean of 3.80 and
standard deviation of 0.623.

These results implied that most of the respondents agreed to the statement our corporation has
been using openness in decision making to analyze Public Procurement Act's impact on
transparency, accountability, and cost-effectiveness of government procurement. The findings
agreed with those of Riro (2018) who found that openness in decision making played an
important role in analyzing Public Procurement Act's impact on transparency, accountability, and
cost-effectiveness of government procurement. These findings contradicted with those Munyoki
(2016) of who found that value for money played a major role in analyzing Public Procurement
Act's impact on transparency, accountability, and cost-effectiveness of government procurement.
The findings concluded that decision making was very important in analyzing Public
Procurement Act's impact on transparency, accountability, and cost-effectiveness of government
procurement.
4.3.4 Descriptive analysis for performance of Government corporations
The descriptive results for the performance of government corporations were presented in Table
4.5.
Table 4.5 Descriptive analysis for performance of government corporations
N Mean Std. Deviation
Our corporation has been witnessing an increase in 35 4.60 0.819
efficient lead times
Our corporation has been witnessing an increase in 35 4.23 0.719
staff productivity

28
Our corporation has been witnessing an increase in 35 4.02 0.699
cost reduction
Valid N (list wise) 35

Table 4.5 results showed that the mean for the statement our corporation has been witnessing an
increase in efficient lead times was 4.60 and the standard deviation was 0.819. It was also
revealed that the statement our corporation has been witnessing an increase in staff productivity
had a mean of 4.23 and a standard deviation of 0.719. Finally the results revealed that the
statement our corporation has been witnessing an increase in cost reduction had a mean of 4.02
and a standard deviation of 0.699.
The results revealed that most of the respondents agreed to the statement our corporation has
been witnessing an increase in efficient lead times. The findings were similar to those by Gracia
(2020) who found that efficient lead times, increased staff productivity and cost reduction
positively led to improved performance of county governments. However the findings
contradicted with those of Njeri (2021) who found that efficient lead times, increased staff
productivity and cost reduction are important aspects of public procurement, but their positive
impact on performance isn't guaranteed. The findings concluded that efficient lead times,
increased staff productivity and cost reduction led to improved performance of government
corporations.

29
4.4 Relationship between independent and dependent variables for effect of the
public procurement and disposal act on procurement efficiency in government
corporations
The relationship between independent and dependent variables for effect of the public
procurement and disposal act on procurement efficiency in government corporations were
presented as in Table 4.6.
Table 4.6 Relationship between independent and dependent variables for effect of the
public procurement and disposal act on procurement efficiency in government
corporations
N Mean Std. Deviation

Level of awareness, understanding and Regional Disparities 35 4.60 0.819

implementation of the PPDA among Capacity building and 35 4.49 0.788
procurement officials in government Training
corporations Political Will 35 4.29 0.734

Extent to which government corporations Supervision 35 4.37 0.755

adhere to procurement procedures and Leadership 35 4.23 0.719
guidelines in PPDA Internal Controls 35 3.94 0.651

Impact of the PPDA on transparency, Openness 35 4.02 0.669

accountability and cost effectiveness Conflict resolution 35 3.95 0.653
of procurement Value for money 35 3.80 0.623

Performance of government Lead times 35 4.60 0.819

corporations Staff productivity 35 4.23 0.719
Cost reduction 35 4.02 0.669
Valid N 35
The data analysis results showed that corporations prioritized level of awareness, understanding
and implementation of the PPDA among procurement officials in government corporations, and
the analysis showed that regional disparities had a mean 4.60 and a standard deviation of 0.819
followed by capacity building and training with a mean of 4.49 and a standard deviation of
0.788. Political will had a mean of 4.29 and a standard deviation of 0.734. Extent to which

30
government corporations adhere to procurement procedures and guidelines in PPDA
concentrated on supervision with a mean of 4.37 and a standard deviation of 0.755 followed by
leadership with a mean of 4.23 and a standard deviation of 0.719 and internal controls with a
mean of 3.94 and a standard deviation of 0.651. The results for Impact of the PPDA on
transparency, accountability and cost effectiveness of procurement showed that openness in
decision making was significant with a mean of 4.02 and a standard deviation of 0.669, followed
by resolution of procurement conflict with a mean of 3.95 and a standard deviation of 0.653 and
value for money which had a mean of 3.80 and a standard deviation of 0.623.
The performance results showed that the mean for lead times was 4.60 and the standard deviation
was 0.819. It was also revealed that staff productivity had a mean of 4.23 and a standard
deviation of 0.719. Finally the results revealed that cost reduction had a mean of 4.02 and a
standard deviation of 0.669. The findings agreed with those of Sang (2020) who found that Level
of awareness, understanding and implementation of the PPDA among procurement officials in
government corporations positively affected performance. However, these findings contradicted
with those Ombati (2015) of who argued that the impact of the PPDA on transparency,
accountability and cost effectiveness of procurement played the most part in improving the
performance of government corporations.
Therefore this study concluded that while awareness and adherence to PPDA guidelines were
prioritized by corporations, regional disparities and capacity building remained concerns.
Supervision was the most impactful factor in adhering to PPDA, while openness in decision-
making led the charge in improving transparency, accountability, and cost-effectiveness.
However, lead times and staff productivity saw improvement, while cost reduction lagged
behind. These findings partially supported previous research, highlighting the need for continued
focus on capacity building and cost-effectiveness for optimal performance.

31
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34
APPENDICES
APPENDIX 1: QUESTIONNAIRE
Cooperative University of Kenya

P.O Box 24814,00502

Nairobi,

Contact 0795288247

faith.cherono@student.cuk.ac.ke

Dear Respondent,

My name is Faith Cherono. I am a fourth-year student at The Cooperative University of Kenya,

Main Campus, Karen. I am undertaking an undergraduate degree in Purchasing and Supplies
Management. In relation to my academic work, I would like to conduct a research study to
identify the Effects of Public Procurement and Disposal Act on Procurement efficiency in
Government Corporations in Kenya in your organization. My research is purely for academic
purposes and I assure that your participation is entirely voluntary, and all responses will be
treated with the utmost confidentiality. Your participation will be highly appreciated.

DEMOGRAPHIC DATA

NAME: ___________________________________

ORGANIZATION: _________________________

SEX: MALE FEMALE

ACADEMIC QUALIFICATION:

PRIMARY SECONDARY CERTIFICATE

DIPLOMA DEGREE POST GRADUATE

EXPERIENCE (YEARS):

0-5 5-10 10-15 15-20 20-25 25-30

35
AGE (YEARS):

21-30 31-40 41-50 Above 40

Section 2: Which is the level of awareness, understanding and implementation of the PPDA
among procurement officials in Government Corporation.

CONSTRUC STRONGLY AGREE NEUTRAL DISAGREE STRONGLY

T AGREE DISAGREE
Regional
Disparities
Capacity
building and
Training
Political Will

Section 3: Extent to which government corporations adhere to procurement guidelines in

PPDA

CONSTRUC STRONGLY AGREE NEUTRAL DISAGREE STRONGLY

T AGREE DISAGREE
Supervision
Leadership

Internal
Controls

36
Section 4: Impact of the PPDA on transparency, accountability and cost effectiveness.

CONSTRUC STRONGLY AGREE NEUTRAL DISAGREE STRONGLY

T AGREE DISAGREE
Openness in
decision
making
Resolution of
procurement
conflict
Value for
money

Section 5: Level of procurement efficiency

CONSTRUC STRONGLY AGREE NEUTRAL DISAGREE STRONGLY

T AGREE DISAGREE
Lead Time
Staff
productivity
Cost
Reduction

37
38
APPENDIX 2: LIST OF FIRMS
Kenya Rural Roads Authority

Kenya Urban Roads Authority

National Roads and Safety Authority

39