EFFECT OF DISCRIMINATORY PUBLIC PROCUREMENT PRACTICES ON ORGANIZATIONAL PERFORMANCE: A STUDY OF PUBLIC SECTOR CORPORATIONS IN KENYA

Abstract

Abstract The purpose of this study was to investigate the effects of discriminatory public procurement practices on organizational performance in the Kenyan public sector. This study adopted both qualitative and quantitative research design. The population of interest for this study was State Corporations in Kenya. 139 procurement managers from the corporations were interviewed, out of which 100 responded. Both primary and secondary data was used for the study. Data analysis methods employed included quantitative and qualitative procedures. In addition, a multiple linear regression model was applied to examine the relationship between the variables. The study concluded that reservations, preferences and indirect practices, positively influenced the performance of State Corporations in Kenya. As part of recommendation, Kenya needs to undertake a sectoral analysis in order to determine which scheme to use for each of the different sectors, while at the same time applying additional measures to ensure the improvement of the developmental impacts of public procurement for the national economy. Such measures include making sub-contracting to Kenyan firms obligatory, downsizing contracts to volumes that local businesses can manage, addressing providers’ concerns over bidding costs by reducing bureaucratic barriers, and providing better feedback to local providers and bidders.