INFLUENCE OF PROCUREMENT UNBUNDLING ON PERFORMANCE OF PREFERENCE AND RESERVATION SCHEME IN DEVOLVED GOVERNMENTS IN KENYA

Abstract

This study examined the influence of procurement unbundling on the performance of the preference and reservation scheme among County Governments in Kenya. The study was guided by the public interest theory of regulation. A descriptive research design was adopted, targeting all Heads of Supply Chain Management and Supply Chain Management officers in 24 selected County Governments in Kenya. A two-stage sampling design was employed: purposive sampling was used in the first stage to select all 48 Heads of Supply Chain Management from the chosen counties, while simple random sampling was applied in the second stage to select 150 Supply Chain Management officers, resulting in a total sample size of 198 respondents. Data was collected using semi-structured questionnaires. A pilot test was conducted among officers in Kisii and Vihiga counties to ensure the validity and reliability of the research instruments. Data analysis was performed using SPSS 25, NVIVO 14, and Python, employing both quantitative and qualitative methods. Descriptive statistics, including frequencies, percentages, means, and standard deviations, were used alongside diagnostic tests for multivariate regression assumptions. Inferential statistics, including correlation and multivariate regression analyses, were also applied. The study achieved a response rate of 87.3% and an instrument reliability score of 0.957. The findings revealed that procurement unbundling (β = 0.2145, p = 0.002), significantly influenced the performance of the preference and reservation scheme. The study concluded that procurement unbundling is a critical determinant of the performance of preference and reservation schemes in devolved governments in Kenya. It is recommended that county governments enhance these institutional determinants by implementing comprehensive policies that mandate unbundling. Practically, the study highlights the importance of tailored support programs for disadvantaged suppliers, including financial assistance and training.