Effect of Strategic Procurement Practices on Performance of Kenya Power and Lighting Company in Mombasa County

Abstract

The Procurement and disposal Act, of 2015, gives guidelines and power to parastatals to ensure that the procurement process is fair and efficient for the participants. However, there have been procurement irregularities in KPLC that have caused a massive financial haemorrhage. The purpose of the study was to examine the effect of strategic procurement practices on performance of Kenya Power and Lighting Company in Mombasa County. The specific objectives were to determine the effect of outsourcing, negotiation, tendering, and inventory control on performance of Kenya Power and Lighting Company in Mombasa County. The study had the resource-based view theory and transaction cost theory. It used a research approach and descriptive research design on a target population of 113 staff of four KPLC offices located in Mbaraki, Mombasa CBD, and Nyali. This study selected the staff using census method and issued questionnaires to all the respondents. The secondary data was generated from income statements and cash flow reports dating from 2020 to 2022. The questionnaire was pre-tested at the KPLC Kilifi county office. Face, content, and criterion validity were measured whereas Cronbach alpha was used to measure reliability. Descriptive statistics like frequencies, mean and percentages were analysed. The study used a thematic method to analyse the open-ended questions and tables, and explanations as main methods of data presentation. The study’s finding on outsourcing practice was that there was occurrence of delays in providing urgent services and products. On negotiation practice, KPLC’s negotiation process was affected by corruption by rogue staff with selfish interests. On tendering practice, there was low incorporation ICT into the tendering process. On inventory control methods, there was inconsistency of policy systems towards guiding quality warehouse management. The study recommendations on outsourcing practice are that the procurement department management conducts a thorough check on the potential products and services outsourced. On negotiation practice, KPLC senior management should develop and implement anticorruption policies on corrupt staff. On tendering practice, senior management should provide funds, increase awareness, and strengthen the ICT implementation policies. On inventory control practice, the procurement department staff undergo training on warehouse management and disposal management.