Factors Affecting the Performance of the Procurement Function in Government Organisations: A Case Study of National Oil Corporation of Kenya

ABSTRACT The purpose of this study was to establish the factors affecting the performance of the procurement function in government organizations and specifically, the National Oil Corporation of Kenya. It was purposely selected due to the fact that the Corporation has sound procurement system that purchases products locally and internationally thus investing more funds in acquiring goods and services. Inefficiency and incompetence of overall administration and management of procurement function has contributed to excessive losses due to poor procurement management practices leading to less than expected performance. The general objective of the study was to establish the factors that affect procurement function in government organizations. The specific objectives of the study were; to find out the effect of government regulations and bureaucracy on the performance of the procurement function. To determine the effect of E-procurement on the performance of the procurement function. To find out the effect of tendering methods on the performance of the procurement function and finally to investigate the effect of quality standards and specifications on the performance of the procurement function. In data collection, qualitative and quantitative research designs were used. This entailed the use of structured questionnaires. The useful data was also obtained from magazines, periodicals, journals and procurement analysis reports on the company. The target population was one hundred and the sample size was fifty. The sample size of the target population consisted of the procurement section, Nairobi National oil terminal, finance and logistics department. Purposive sampling technique was used because of the nature of the research, where the respondents were identified before data collection. Data analysis was done with the help of Statistical Package for Social Sciences computer program. The key findings of the study indicated that government regulations affected procurement performance such as following procurement rules and regulations. Open tendering is the most advocated method of acquiring goods and services in government organizations. The study established that there are various risks associated with e-procurement. For instance, hacking of confidential information. In order to improve on procurement function and consequently organizational performance the following are the recommendations. The recommendations entailed need to employ procurement officers with professional qualifications, offer training to the workers and opportunities for further education, strong control of e-procurement system so as to improve flow and access of information.