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DETERMINANTS OF NON COMPLIANCE WITH PUBLIC PROCUREMENT REGULATIONS IN THE PUBLIC SECTOR, A SURVEY OF SELECTED PARASTATALS IN NAIROBI, KENYA.

Jones K. Mosbei Bor
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Department of Marketing & Logistics Management, Moi University, Eldoret,Kenya.

Peter Nderitu Githaiga
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Department of Accounting & Finance, Moi University, Eldoret,Kenya.

 

CITATION: Mosbei Bor,  K.  Jones & Githaiga N, Peter (2015). Determinants of Non Compliance With Public Procurement Regulations In The Public Sector, A Survey Of Selected Parastatals In Nairobi, Kenya. International Journal of Social Sciences and Entrepreneurship, 3 (1), 224-237.

ABSTRACT

Public Procurement is one of the Kenyan Government’s key areas of emphasis; it refers to the acquisition of goods and services by government or public sector organizations, public sector expenditure is substantial, government organizations across the world tend to spend between 8% and 25% of GDP on goods and services. Owing to the enormous amount of money involved and the fact that the money comes from the public, they demand accountability and transparency. Rules on public procurement have been enacted, however compliance by public procuring entities is still a challenge, and limited studies have been done in this area. The general objective of this study was to examine the determinants of non-compliance to public procurement regulations in the public sector in Kenya. Specific Objectives were; to examine the effect of familiarity with rules and determine the effect of perceived inefficiency. The study is anchored on two theories, Socio-economic theory of regulatory compliance and principal agent theory, explanatory research design was utilized in this study. A census survey of procurement officers working for Government parastatals in Nairobi was employed as a method of data collection. Data was collected from a sample of (119/132) respondents from the public sector enterprises translating to a response rate of 90.2 %. A likert type of questionnaire was used to solicit primary data. The data analysis methods used were descriptive and inferential statistics, utilizing a multiple regression analysis model. The study findings revealed that non-compliance is affected by factors relating to; familiarity with public procurement regulations (ß1=0.313, p<0.05). Correlation statistics revealed that there exists a positive relationship between dependent variable (y) and all the independent variables (x1 and x2).This study has highlighted several recommendations that will be of use to public procuring entities and their employees to improve compliance with the procurement regulations in place. Finally the respondents in this study are purchasers; future study could include a sample of other respondents other than purchasers, for instance the tender committee members.


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