Effect of Public Procurement Policy Framework on Inventory Management Performance of Government Ministries in Kenya

Abstract

Public procurement policy framework and its effect on inventory management performance in the government ministries in Kenya is critical as the entire budgetary allocation of the Republic of Kenya is expended through procurement process. The study purposed to establish the effect of public procurement policy framework on inventory management performance in the government ministries in Kenya. The framework sets forth procurement regulations and rules which establish the procurement procedures for carrying out the procurement activities effectively and efficiently. The study also sought to determine the effect of material acquisition procedures, stock control management procedures, records management procedures and disposal management procedures on inventory management performance in the government ministries. The study was anchored on institutional theory, game theory, stock diffusion theory and theory of economic order quantity. The study adopted a cross sectional survey design. The target population of this study was 680 supply chain management officers in all the 20 Government ministries in Kenya. The sample size was determined using Fishers’ formula. Stratified random sampling was used as it gives representative sample of the whole population. Both primary and secondary data were used. This study made use of semi-structured questionnaires to collect primary data. Secondary data was extracted from records availed by the targeted population. A pilot test was conducted to test the reliability and validity of the data collection instruments. The questionnaires were administered through a drop and pick later method. The data collected from the ministries headquarters, which form the largest buyers in terms of government financial allocation was both qualitative and quantitative. Thematic content analysis was used to analyze qualitative data that is, data collected from open ended questions. The results were then presented in form of a prose. Both descriptive and inferential statistics were used to analyze quantitative data. In descriptive statistics, the study used frequency, mean, standard deviation and percentages. The analyzed data was then presented in tables and figures. In relation to inferential statistics the study used analysis of variance, correlation analysis and regression analysis. The study also found xxi that there is a positive and significant relationship between material acquisition procedures and inventory management performance in government ministries in Kenya. The study further established that there is a positive and significant relationship between stock control management procedures and inventory management performance in government ministries in Kenya. The study also found that there is a positive and significant relationship between records management procedures and inventory management performance in government ministries in Kenya. The study revealed that there is a positive and significant relationship between disposal management procedures and inventory management performance in government ministries in Kenya. This study concludes that there is a positive and statistically significant relationship between material acquisition procedures and inventory management performance in government ministries in Kenya. This study recommends that all policies should comprise a section to guide a smooth implementation without affecting the supply chain. In addition, policy makers/the GoK should come up with policies to enhance efficiency in the procurement process by reducing bureaucracy and time taken to pay the suppliers. Further, the GoK should consider increasing the number of staff working in the supply chain departments so as to improve planning and reduce delays in the requirement process. Also, the government should provide constant and frequent trainings to equip supply chain management staff with the skills that they require in material acquisition.