GREEN PROCUREMENT PRACTICES AND PERFORMANCE OF CEMENT MANUFACTURING FIRMS IN MACHAKOS COUNTY, KENYA
Abstract
Cement manufacturing firms play a crucial role in the economic development of Kenya by contributing significantly to the infrastructure and construction sectors. However, cement manufacturing firms in Kenya face several challenges that impact their performance. According to the Kenya National Bureau of Statistics (KNBS), in 2022, the cost of manufacturing cement increased by 13% from the previous year due to a surge in the cost of coal and electricity. In the same year, Bamburi Cement, one of the leading manufacturers in Kenya, reported a 9% drop in profits, primarily attributed to high energy costs and the weakening of the Kenyan Shilling, which increased the cost of importing raw materials The general objective of the study is to assess the effect of green procurement practices on performance of cement manufacturing firms in Machakos County, Kenya. Specifically, the study sought to establish the influence of sustainable sourcing on performance of cement manufacturing firms in Machakos County, Kenya, and to determine the effect of green packaging on performance of cement manufacturing firms in Machakos County, Kenya. This study was guided by: Stakeholder Theory and The Diffusion of Innovations Theory. The study used a descriptive research design. The target population in this study was 126 procurement and logistics officers working in seven cement manufacturing firms namely. The study employed a census approach to collect data from the all the 112 respondents mainly involved in the management of distribution. Descriptive statistics such as frequency distribution, mean (measure of dispersion), standard deviation, and percentages were used. Inferential data analysis was conducted by use of Pearson correlation coefficient, and multiple regression analysis. The relationship between the study variables was tested using multivariate regression models. The study results were presented through use of tables and figures. The study concludes that sustainable sourcing has a positive and significant effect on performance of cement manufacturing firms in Machakos County, Kenya. Further, the study concludes that green packaging has a positive and significant effect on performance of cement manufacturing firms in Machakos County, Kenya. Based on the findings, the study recommends that the management of cement manufacturing firms in Kenya should integrate locally available alternative raw materials. By sourcing these materials from nearby industries, cement firms can reduce their dependency on traditional raw materials like limestone, thereby lowering transportation costs, minimizing environmental degradation, and decreasing carbon emissions.
Key Words: Green Procurement Practices, Sustainable Sourcing, Green Packaging, Performance of Cement Manufacturing Firms
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