LOCAL CONTENT PARTICIPATION AND PROCUREMENT PERFORMANCE AT KENYA ELECTRICITY GENERATING COMPANY PLC

Jefter Gisemba Gesaka, Dr. Evelyn Awuor Datche, (PhD)

Abstract


There are many valid reasons why countries wish to employ Local Content Policies. The general objective of the study was to evaluate local content participation and procurement performance at Kenya Electricity Generating Company. The specific objectives of the study were to examine the effects of local suppliers’ engagement and local sourcing of products on procurement performance of KenGen. This study was anchored on the following theories; Social Exchange theory and Transaction Cost theory. Primary data was collected through use of questionnaires. The target population was 134 employees at KenGen that included project managers, project steering team, procurement officers, ICT technicians, human resource officers and finance officers. The sample size was 100 employees and stratified random sampling method was used to select the sample. A modified Likert scale questionnaire was developed. Data analysis was through Statistical Package for Social Science (SPSS Version 23). Descriptive analysis and inferential statistics were used in the analysis. It was concluded that local suppliers engagement has a significant effect on procurement performance at KenGen through fostering strong community ties, reducing lead times, and minimizing costs. Local sourcing of products has a significant effect on procurement performance at KenGen by ensuring shorter lead times, reducing transportation costs and fostering stronger supplier relationships. It is recommended that KenGen should create platforms for local suppliers to network, share best practices and collaborate on joint ventures. It is recommended that KenGen should implement procurement policies that prioritize local sourcing, setting specific targets or quotas for local procurement.

Keywords: Local Content Participation, Local Suppliers Engagement, Local Sourcing of Products, Procurement Performance

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