STRATEGIC PROCUREMENT PRACTICES AND PERFORMANCE OF STATE CORPORATIONS IN NAIROBI CITY COUNTY, KENYA

Abstract

The purpose of this study was to examine the effect of strategic procurement practices—specifically procurement need analysis and procurement contract award—on the performance of state corporations in Nairobi City County, Kenya. The study adopted a descriptive research design. The target population comprised 2,142 employees from state corporations in Nairobi City County, from which a sample of 337 respondents was selected through proportionate stratified random sampling. Data were collected using self-administered questionnaires based on a five-point Likert scale. A pilot test established acceptable reliability (α > 0.70) and content validity (CVI > 0.50). Data were analyzed using SPSS version 28 and results presented using tables and figures. The findings indicated that a unit increase in procurement need analysis was associated with a 0.4213 improvement in performance of state corporations, holding other factors constant. Additionally, a unit increase in procurement contract award practices contributed a 0.354 increase in performance. The study concludes that both procurement need analysis and procurement contract award significantly enhance the performance of state corporations in Nairobi City County. It recommends that state corporations strengthen their procurement need identification processes and adopt transparent, timely, and objective contract award procedures to realize improved performance outcomes.

Key Words: Strategic Procurement Practices, Procurement Need Analysis, Procurement Contract Award, Performance of State Corporations, Nairobi City County, Kenya