Role of Public Procurement on the Performance of State Corporations in Rwanda: A Case of Rwanda Revenue Authority

This study aimed at investigating the role of public procurement on performance of State Corporation in Rwanda, and in this case, RRA is the State Corporation in this study, problems of Public procurement has for long been overshadowed with inefficiency, corruption and disregard of fundamental value for money considerations. Public procurement in Rwanda is marred by losses amounting to billions of Rwandan francs, poor management of public funds still occur at the rate of 50 %. Moreover, to prove the general objective, the results of this study was presented in accordance with specific objectives stated by the researcher such as, to assess if contract management affects performance of Rwanda Revenue Authority; to determine whether procurement planning affects performance of Rwanda Revenue Authority; to establish how lead time affects performance of Rwanda Revenue Authority and to ascertain how operational capacity affects performance of Rwanda Revenue Authority. Descriptive research design was adopted for this study using both qualitative and quantitative methods of data collection. The study used a sample of 52 employees of RRA and was selected by using purposive sampling techniques from a targeted population of 520 employees. Findings indicated that contract management has positive high correlation to the performance of RRA equal to.821**and the sig. is.000 which is less than 0.01. Procurement planning has positive high correlation to the performance of RRA equal to.811**and the sig. is.000 which is less than 0.01. Lead time has positive high correlation to the performance of RRA equal to.795**and the sig. is.000 which is less than 0.01. Operational capacity has a high positive correlation to the performance of RRA equal to.882**and the sig. is.000 which is less than 0.01. The main conclusion is that contract management, procurement planning, lead time, and operational capacity are paramount aspects of public procurement. The study found that the performance of RRA was highly appreciated in the last 5 years. The study concluded that public procurement contributes to the performance of State Corporation in Rwanda. As recommendation, management should keep investing in uplifting operational capacity and reduce both internal and external lead times to meet organization needs and further put in place measures of having stable procurement plan and lastly attaining value for money through effective contract management.