SUPPLIER DEVELOPMENT PRACTICES OF DISADVANTAGED GROUPS AND PROCUREMENT PERFORMANCE OF COUNTY GOVERNMENTS IN WESTERN REGION, KENYA.

Abstract

County governments of the Western region of Kenya face challenges when dealing with disadvantaged groups with regard to tender awards, contract management and implementation, sourcing, as well as during deliveries. When disadvantaged suppliers are enlightened the county governments cut return outwards costs, late deliveries costs, contract implementation costs and sourcing costs. This in turn enables county governments to set budgets aside for timely and optimum utilization by disadvantaged groups. Despite the implementation of the government directive that 30% of government tenders be allocated to disadvantaged groups, most of the money set aside for the said groups has not been utilized. These have increased costs of delays in projects, increased return outwards, and cancellation of contracts because of dealing with suppliers who have not been developed and lack knowledge of the procurement process and how to work with the county governments on matters of procurement. The aim of this study was to establish the influence of supplier development practices of disadvantaged groups on procurement performance in the county governments of Kenya, Western region. The specific objectives of the study were: To establish the influence of access to financing practices, to determine the influence of capacity building practices, to examine the influence of technical development practices and to assess the influence of access to procurement information and communication practices by disadvantaged groups on procurement performance of county governments in the Western region. The study employed the empowerment theory and the theory of change. The main instrument for data collection was the questionnaire. The target population for the study was 95. Data was analyzed using multiple regression and presented in form of tables and percentages. The findings indicated that access to financial practices, capacity building, technical support, information and communication had a significant negative effect on procurement performance with p values: 0.001, 0.004, 0.000, 0.001 and Beta coefficients -.272, -.146, -.203, and -.177 respectively. The findings of the study may be relevant to policymakers for the purposes of formulating policies and may also be part of existing literature that will be used by researchers and scholars. It was concluded that access to financial practices, capacity building, technical support, information and communication had a significant effect on the procurement performance of county governments in the Western region, of Kenya. From the findings, it was recommended that county governments in Kenya should embrace supplier development practices for disadvantaged groups to enhance innovation and support to the reserved groups.