DECLARATION

By the student

I hereby declare that this research project represent my own original work
and has never been submitted to any other College for an award of Diploma
in supply chain management.

Signature: . Date:
................

Name

By the Supervisor

Signature: . Date:
................

MR. SIOCHA

LECTURER

DEPARTMENT OF BUSINESS

EAST AFRICA INSITTUTE OF CERTIFIED STUDIES .

2
 DEDICATION
This work is dedicated to my dear husband and parents, who have tirelessly
supported, encouraged me financially, morally and in all aspects. May the
God bless them?

3
 ACKNOWLEDGEMENTS
I take this opportunity thank God for the good health and for providing me
with the capacity and courage to go through the course successfully.

I appreciate the work done by my supervisor Mr. siocha. Thank you for your
guidance, knowledge advice, and time you accorded to me during the
completion of this research project report.

Special thanks go to the staff of ics studies especially my esteemed

Lecturers for their timely, parental guidance and advices they gave during
their class Lectures. Thanks for all the support you gave me throughout the
course.

Im highly indebted to my friends and course-mates for the support and

encouragements they gave me, thanks for being there for me.

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TABLE OF CONTENTS

Title page

Declaration...
.i

Dedication...
..........ii

Acknowledgements .....
.iii

Table of Contents ..
iv

List of
figures.viii

List of
tables.............ix

List of abbreviation and acronyms

...x

Abstract
xi

CHAPTER
ONE...1
1.0
Introduction...1

5
1.1 Background of the study.
...1
1.2 Statement of the problem.
......2
1.3 Purpose of the study..
.........3
1.4 General objective of the study.....
......4
1.4.1 Specific objectives of the
study..4
1.5 The research questions.....
......4
1.6 Significance of the study..
......4
1.7 Delimitations of the study/Rationale.....
...5
1.8 Limitation of the study..
,,...........5
1.9 Assumption of the study....
6
1.1.0 Definition of key terms......
...6
1.1.1 Summary of the study.
8

CHAPTER TWO.
..9

2.0 Literature
Review9

2.1 Introduction ....

...9

6
2.2 Review of Literature review on related variables ..
..9

2.2.1 Procurement process...

9

2.2.2 Ethics in procurement.. ....

........................11

2.2.3 Use of ICT in procurement..

.12

2.2.4 Supplier buyer relationship...

14

2.3 Theoretical frame work .

..15

2.3.1 Theory of
transformation..15

2.4 Conceptual frame work..

....16

2.5 Explanation of conceptual framework..

.17

2.5.1 Procurement process...

.17

2.5.2 Ethics in procurement.. ....

........................17

2.5.3 Use of ICT in procurement..

.17

7
2.5.4 Supplier buyer relationship...
18

2.6 Summary and gaps.

.....18

CHAPTER THREE..
...20

3.0 Research design and

Methodology...20

3.1 Introduction....
.20

3.2 Research design..

....20
3.3 Target population...
..20

3.4 Sampling procedure......

..20

3.5 Sample size

.....21
3.6 Method of data collection .....
..21
3.7 Piloting of Research instrument...
21
3.8 Validity and Reliability of the
study...22
3.9 Data analysis Methods ...
...22
3.10 Ethical considerations ..
....22
3.11 Summary....
24

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CHAPTER FOUR
25

4.0 Data analysis, presentation and interpretation of

Results.... 25

4.1 Introduction to data analysis

.......25

4.2 Presentation of findings ....

..25

Table 4.1 Response rate of the research questions ..

.25

Table 4.2 Gender of the

respondents....25

Table 4.3 Age Brackets of the

respondents...26

Table 4.4 Marital status of the respondents

..26

Table 4.5 Level of

Education.....26

Table 4.6 Procurement

process..27

Table4.7Does machakos town entrepreneurs follow business

ethics27

Table 4.8 Does use of ICT influence procurement.

....27

9
Table 4.9 Does supplier buyer relationship influence procurement.
...28

Table 4.10 Conversant with regulation and policies in inventory

management.28

4.3 Data analysis..

..28

CHAPTER
FIVE.30

5.0 Summary, Conclusions and

Remunerations...30

5.1 Introduction...
..30

5.2 Summary to major findings ...

30

5.3 Discussion: Answers to the research questions ..

...30

5.3.1 Influence of procurement process of procurement..

30

5.3.2 Ethics in procurement..

...31

5.3.3 Use of ICT in procurement..

...31

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5.4 Conclusions...
...32

5.5 Recommendations of the study

...32

5.6 Suggestions for further study....

......33

REFERENCES.
35

APPINDICES
38

Appendix i: Letter of
Introduction.38

Appendix ii:
Questionnaire...39-42

LIST FIGURES

Figure 2.4. Conceptual Frame

work.15

11
 LIST OF TABLES

Table 4.1 Response rate of the research questions ..

.25

12
Table 4.2 Gender of the
respondents....25

Table 4.3 Age Brackets of the

respondents...26

Table 4.4 Marital status of the respondents

..26

Table 4.5 Level of

Education.....26

Table 4.6 Procurement

process..27

Table 4.7 Does Isiolo town entrepreneurs follow business

ethics27

Table 4.8 Does use of ICT influence procurement.

....27

Table 4.9 Does supplier buyer relationship influence procurement.

...28

Table 4.10 Conversant with regulation and policies in inventory

management.28

4.3 Data analysis..

..28

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 LIST OF ABBRIVIATIONS AND ACRONYMS

ICT: --------------------------------------------------Information communication

technology

NSSF: ----------------------------------------------------National social security fund

SPSS: ------------------------------------------------------Statistical package for the
social Sciences
PPD:--------------------------------------------------------Public procurement doctrine
PPOA: --------------------------------------------------------Public oversight procurement
authority PPOAB: --------------------------------------------------Public procurement
oversight advisory board
PPARB: ---------------------------------------------Public procurement administrative
review board

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 ABSTRACT

Challenges of procurement has been attracting attention from scholars,

practitioners, academicians and researchers due to poor performance
resulting from non-adherence to proper processing and procedures. The
research project report study aimed at identifying the challenges of
procurement in town of machakos County- Kenya. Literature highlights,
procurement process, ICT adoption, ethics and supplier relationship
management as some of the key challenges that effect public procurement
performance. Legislation to regulate public procurement process in Kenya
has been implemented, through enactment of The Public Procurement
Disposal Act (2005) and Public procurement and Disposal Regulations (2006)
The challenges faced by public procurement has been propagated due to
the fact that existing legislations do not foster use of technology in
procurement process and a long-term buyer-supplier relations. Maintenance
high ethical standards in the procurement process have also been a nagging
challenge; this is exhibited by the poor ranking by Transparency International
Corruption Perception. The research project report concludes that public
procurement in machakos town can only be implemented through review of
existing legislations to encourage extensive use of technology in the
management of the procurement process, fostering of long-term buyer

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supplier relation and stakeholders involvement through trainings and
sensitization on practicing ethical behavior when conducting procurements.
The sample size of 30 is determined by formulae of Krejcie Morgan (1970)
Data is both primary and secondary. Questionnaires will be used collect data
from a sample of 30 offices within the public service departments. Data
collected from the study are used to examine respondents like warehouse
managers, members of staff, and internal customers in the organization in
machakos town. On the basis of the issues raised a Questionnaire was
developed for empirical research study. Data collected from the
Questionnaires was analyzed by means of descriptive statistics and
interpreted and presented in tables and percentages. The completed copies
of the Questionnaires were coded and entered into the computer using the
Statistical Package for the social sciences (SPSS) software and excel sheets
and used to determine the relationship between two variables.

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