SUPPLY CHAIN MANAGEMENT CHALLENGES IN KENYA PETROLEUM INDUSTRY: CASE OF NATIONAL OIL CORPORATION OF KENYA

Kimani Charles W.

Director, Jocha Enterprises Ltd.

ABSTRACT

Kenya’s petroleum industry faces supply chain challenges such as lack of strategic stocks, relatively high petroleum prices compared to other East African countries, frequent fuel shortages, sub-standard products and diversion of products destined for export back into the country. The discussions of this paper sought to explore challenges facing implementation of effective supply chain management practices in petroleum industry in Kenya, a case of National Oil Corporation. Specifically the paper sought to explore the influence information technology, supply chain design, people issues and partnership/collaboration issues to the implementation of effective supply chain management. The study found that all four independent variables have high effect on implementation of effective SCM in the petroleum sector.

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