Evaluating value for money in procurement among government ministries in Kenya

Mochache, Geoffrey Ochako
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Strathmore University
This study aimed at evaluating value for money in procurement among government ministries in Kenya where there is a controlled procurement process by an Act of parliament. In the study, both qualitative and quantitative methods were used to answer the research objectives using data collected from the 42 ministries. It was established that, in regard to legal framework in public financial management, there is an average compliance to the procurement law. It was noted that the market price index tool (market price list) is not commonly used as required by the Public procurement oversight authority (PPOA). Competition through open tendering is not embraced hence alternative procurement methods which are exposed to abuse are commonly used. However, the oversight authority remains steadfast in carrying its mandate as required by the procurement Act as well as the institutional committees and structures within the ministries is adhered to by officers who are held responsible for procurement processes. The study establishes the extent to which value for money in public procurement has been achieved since implementation of the Procurement Law and also provides knowledge in public procurement so that scholars may appreciate how regulated systems mayor may not provide value for money in procurement process. For justification of public financial management, the study recommends for strengthening the legal framework especially in provision of better policy on maximum prices that ministries and other public entities should pay for goods, works and services in order to achieve the objectives of the procurement Act.
Submitted in partial fulfillment of the requirements for the Degree of Master of Commerce
Procurement, Government ministries, Kenya