The Influence of Procurement Process on Financial Performance of Ministries in Kenya
DOI:
https://doi.org/10.47941/ijf.3748Keywords:
Procurement Process, Resource Allocation, Financial PerformanceAbstract
Purpose: The financial performance of ministries in Kenya is crucial in understanding the efficiency of government spending and the achievement of national development goals. The financial performance of ministries in Kenya faces several significant challenges that hinder their effectiveness in achieving optimal outcomes. Specifically, the study focused on the influence of procurement process on financial performance of ministries in Kenya. The study also focused on establishing the moderating effect of resource allocation. This study was anchored on Agency Theory and Resource-Based View (RBV) Theory.
Methodology: For this study, descriptive research design was utilized. This study adopted a positivist research paradigm. The total target population was 538 respondents. Using the Krejcie and Morgan formula, the sample size for the study was 224 respondents. This study adopted the self-administered questionnaire approach. A pilot study was conducted to test validity and reliability of the questionnaire. Data from questionnaires was coded and analyzed using the latest Statistical Package for Social Sciences (SPSS) computer software. The study employed mixed methods data analysis by applying the use of descriptive and inferential statistics. The study results were presented through use of tables and figures.
Findings: The study concludes that procurement process positively and significantly influences financial performance of ministries in Kenya. In addition, the study concluded that resource allocation has significant moderating effect on the relationship between procurement process and financial performance of ministries in Kenya.
Unique Contribution to Theory, Policy and Practice: Based on the findings, the study recommends that the management of ministries in Kenya should implement an integrated e-procurement system. This system would automate and streamline the entire procurement process, from bidding to contract management, ensuring transparency, reducing delays, and minimizing opportunities for corruption. By adopting e-procurement, ministries can access a wider pool of suppliers, leading to more competitive pricing and better value for money.
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Copyright (c) 2026 Daniel Waithima, Prof. Patrick Karanja Ngugi, Dr. Agnes Njeru
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