SUSTAINABLE PROCUREMENT PRACTICES AND PERFORMANCE OF STATE CORPORATIONS IN NAIROBI CITY COUNTY, KENYA
Abstract
In recent years, the performance of state corporations in Kenya has been on a downward trajectory, which has raised concerns among stakeholders. A number of these entities have struggled with operational inefficiencies, corruption, mismanagement, and poor financial performance. According to the Auditor General’s report (2022), out of the 247 state corporations in Kenya, over 50% were unable to meet their financial obligations, with several recording significant losses. The general objective of the study was to assess the influence of sustainable procurement practices on performance of state corporations in Nairobi City County, Kenya. Specifically, the study sought to determine the influence of green specification on performance of state corporations in Nairobi City County, Kenya and to establish the influence of green tendering on performance of state corporations in Nairobi City County, Kenya. The study used a descriptive cross-sectional research design. The target population was the management employees in the thirty-seven state corporations in Nairobi County. The study targeted two top managers, 5 middle-level managers, and 7 lower-level managers in every state corporation. The study sample size was two hundred and twenty-seven (227) management employees working in 37 state corporations operating in Nairobi County. The study’s primary data was obtained using semi-structured questionnaires. The researcher carried out a pilot study to ensure the data collection tool is reliable and valid. Quantitative and qualitative data was generated from the closed-ended and open-ended questions, respectively. Qualitative data was analyzed on thematic basis and the findings provided in a narrative form. Before the data can be analyzed, the researcher ensured the data was checked for completeness, followed by data editing, data coding, data entry, and data cleaning. Inferential and descriptive statistics was employed for analysis of quantitative data with the assistance of Statistical Package for Social Sciences (SPSS version 25). Data analysis was done using descriptive statistics and inferential statistics. Inferential data analysis was conducted by use of Pearson correlation coefficient, and multiple regression analysis. The study results were presented in tables and figures. The study concludes that green specification has a positive and significant effect on performance of state corporations in Nairobi City County, Kenya. The study also concludes that green tendering has a positive and significant effect on performance of state corporations in Nairobi City County, Kenya. Based on the findings, the study recommends that the management of state corporations in Kenya should establish a clear framework that prioritizes sustainability criteria in the procurement process. By integrating these criteria into their procurement policies, state corporations can drive demand for greener products, encourage suppliers to adopt sustainable practices, and foster a culture of environmental responsibility.
Key Words: Sustainable Procurement Practices, Green Specification, Green Tendering
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