Factors that affect annual tender administration in Kenyan public Universities : a case study of Jomo Kenyatta University of Agriculture and Technology

Abstract

Tendering or bidding is the most preferred means of buying or procurement in public institutions in Kenya. Other methods include direct procurement, request for quotations, etc. This being the main method used in such public entities, a large portion of the exchequer's funds is spent through this means. There are several reasons that explain and validate this preference. It follows that for successful implementation of such a programme, the procuring entity must play by the 'rules of the book'. That is to say the rules governing this practice as laid down by the government and are now enshrined in the Public Procurement and Disposal act 2005. The ever changing society and its dynamics have necessitated a few modifications to embrace issues to do with strategy and Information Technology (IT). This can be done through consultation with the Director of Public Procurement. Although the original principle behind the adoption of tendering system were rather rigid ; such rigidity was made deliberately to counter the anomalies and grand graft which have infested public procurement for a very long time and may be here to stay if nothing drastic not short of a paradigm shift is achieved. Adherence to the rules governing the public procurement tendering system is aimed at minimizing the aforementioned anomalies. It goes without mentioning that due to the foregoing, there have been numerous hindrances to the effective planning, implementation and administration of an ideal tendering system in public institutions. The purpose of this study was to outline these issues and hence recommend viable remedies to enable a smooth and successful procurement operation in public entities. The study revealed that the tender is largely implemented in a functional approach where the bulk of activities are repetitive and not strategic. For example raising orders focusing on price reduction without exploring the value in the pricing; most ofthe suppliers interviewed were not expressly aware of the university's policies on tender implementation for example supplier evaluation, procurement plan etc. Focus seems to be laid on volume of activity with less emphasis on effectiveness of operations. The study also revealed that the bulk of limitations on tender implementation are essentially related to human conduct, attitude and integrity and as such within the internal environment of the institution. Therefore implementing the recommendations in this project report would not cost the institution an extra coin by a large proportion. In deed failing to that would be drastically costly. The field of study was comprised of JKUAT Purchasing section, central services office and JKUAT suppliers. Using simple random sampling eight (34) suppliers were selected. The two departments at JKUAT were selected by using convenience / judgmental sampling. Semi structured questionnaires were used as an instrument of data collection and formal interviews as a method of data collection. The data collected was compiled using Microsoft Word and Excel. Comparison was easy and conclusions were reached after the analysis for the realization research objectives.