PROCUREMENT CONTRACTS RISK MANAGEMENT AND PROCUREMENT PERFORMANCE IN THE JUSTICE SECTOR IN NAIROBI CITY COUNTY, KENYA

Priscilla Ndindi Musyoka, Dr. Anthony Osoro

Abstract


Despite the critical role of procurement in the justice sector, there remains a significant gap in understanding how inadequate risk management practices contribute to inefficiencies, cost overruns, and delays in procurement performance, particularly within the resource-constrained environment of Nairobi City County, Kenya. This study sought to investigate the influence of procurement contract risk management on procurement performance within the justice sector in Nairobi City County, Kenya. The research focused on  key aspects of procurement contracts risk management: contracts risk mitigation measures, and contracts risk monitoring tools. The study employed a descriptive research design, targeting a population of 100 procurement contracts across various entities within the justice sector, including superior courts, magistrate courts, and other judicial bodies. Using the Krejcie and Morgan formula, a sample size of 80 respondents was determined, and data was collected through structured questionnaires distributed via a drop-and-pick method. The research utilized stratified sampling to ensure representativeness, followed by simple random sampling within each stratum. Data analysis was conducted using SPSS version 28, with both descriptive and inferential statistics applied. Pearson correlation and multiple regression analysis were used to explore the relationships between the variables and their impact on procurement performance. The study's regression analysis revealed that all four procurement contract risk management variables significantly influence procurement performance within the justice sector in Nairobi City County, Kenya. The coefficients showed that contracts risk mitigation measures had the strongest positive impact on procurement performance (β = 0.538, p < 0.01), followed by contracts risk monitoring tools (β = 0.429, p < 0.01). Strong risk mitigation measures, continuous monitoring through advanced tools, significantly contribute to improved procurement outcomes. These practices help prevent disruptions, ensure timely and cost-effective procurement processes, and maintain compliance with regulatory standards. The study recommends that organizations in the justice sector prioritize the development and implementation of comprehensive risk mitigation strategies to minimize procurement disruptions. Investing in advanced risk monitoring tools is essential for real-time risk management.

Key Words: Procurement Contract Risk Management, Procurement Performance, Justice Sector, Contracts Risk Mitigation Measures, Contracts Risk Monitoring Tools


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