Influence of Procurement Practices on Asset Disposal in Energy Sector State Corporations in Kenya

Abstract

The purpose of this study was to evaluate the influence of procurement practices on asset disposal in energy sector state corporations in Kenya. The general objective of this study was to evaluate the influence of procurement practices on asset disposal in energy sector state corporations in Kenya. The specific objectives were to investigate the effect of pre-disposal engagement practice on asset disposal in energy sector state corporations in Kenya; to establish the influence of e-procurement practice on asset disposal in energy sector state corporations in Kenya; to assess the effect of procurement skills practice on asset disposal in energy sector state corporations in Kenya; to evaluate the influence of inventory management practice on asset disposal in energy sector state corporations in Kenya and to examine the influence of post evaluation engagement practice on asset disposal in energy sector state corporations in Kenya. The main problem of the study is non adherence to section 74 of the public procurement and disposal act 2015. The theories included: the institutional theory, Agency theory, Gap depreciation theory, Game theory and dynamic supply chain capabilities theory. The target population was 349 employees of the five energy sector state corporations and the sample size was 183 employees. Quantitative research design was adopted for the study. The questionnaire was used as the data collection instrument. Hence the distribution of questionnaires to top managers produced 146 respondents. Data analysis and interpretation was based on descriptive statistics as well as inferential statistics mainly regression analysis, Pearson correlation, factor analysis, and Analysis of Variance. From the study it was established that e-procurement practice influence asset disposal greatly followed by inventory management practice, pre disposal engagement practice, post evaluation engagement practice and lastly procurement skills practice. The study concludes that pre disposal engagement practice, e-procurement practice, procurement skill practice, inventory management practice and post evaluation engagement practice all had a positive correlation with asset disposal in energy sector state corporations in Kenya. This implied that pre disposal engagement practice, e-procurement practice, procurement skills practice, inventory management practice and post evaluation engagement practice all influence positively asset disposal in energy sector state corporations in Kenya. Therefore, from the findings the study concludes that the greater the use of procurement practices, the greater would be their effect on asset disposal. The key recommendations of the study include; in future organizations should consider selecting disposal committee members objectively by doing thorough consultation with the user departments and any department which may be affected indirect in assets disposal process; the study recommends that organizations should put in place good procurement system to assist them in procuring and asset disposal; the study recommends that organizations should conduct needs assessment to establish areas of training; the study also recommends that organizations should conduct benchmarking to other institutions as alternative of training procurement officers; the study recommends that storage of disposable assets should be given a priority in organization and organizations should have designated areas for disposable materials; another though interesting study recommendation is that organizations should lease disposable assets to the public, contract and auction as the fastest way of disposing and finally the study recommends that upon completion of all the procurement or disposal proceedings organizations should prepare contract details and signing of the contract done and organizations should deliver the disposed asset immediately after completion of the contract.