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DETERMINANTS OF PROCUREMENT REGULATORY COMPLIANCE BY KENYA ELECTRICITY GENERATING COMPANY


Hillary Mugo

Masters Student, Jomo Kenyatta University of Agriculture and Technology, Kenya


ABSTRACT

Worldwide public procurement has been subjected to reforms, restructuring, rules and regulations. Although several developing countries have taken steps to reform their public procurement systems, the process is still shrouded by secrecy, inefficiency, corruption and undercutting. In all these cases, huge amounts of resources are wasted, data from Kenya Anticorruption commission show that Kengen lost more than 200 Billion for the last five years. Transparency International (TI) reveal that procurement scandals in Kenya are associated with lack of compliance. Kengen was ranked among top ten public sector associated with procurement scandals (TI, 2012). Data from World Bank  show that Kengen lost 5 Billion relating to procurement scandal.The main objectives of this study however was to identify the determinants of procurement regulatory compliance by Kenya electricity generating company. Specifically the study sought to find the effect of staff competence, technology, organizational structure and governance policies in determining procurement regulatory compliance.The research design employed in the study was descriptive. The sampling technique was stratified random sampling. The study was carried  out with a pilot study to pre-test and validate the questionnaire. The aim of the pilot study was to test the reliability of the questionnaires. This study used statistical package for social sciences, SPSS Version 21 to aid in data analysis. Regression analysis was  used to establish the relationship between the variables. The study found out that information technology was the most significant variable in determining  procurement regulatory compliance; IT has affected the performance of Kengen Company to a high extent and that technological use has increased efficiency on the procurement regulatory compliance. The study also concludes that organization structure determine procurement regulatory compliance by Kengen The study recommends that the organization should have competent professional workforce equipped with skills and knowledge for specified procurement jobs and have improvised information technology in order to have sound procurement regulatory compliance.


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