Strategic Issues in the Implementation of the Public Procurement and Assets Disposal Act 2015 by Public Pension Schemes in Kenya

Abstract

The procurement function of the Kenya Pension Industry has remained unregulated for a long time. The general administration of the industry was only regulated by the Retirement Benefit Authority Act 2000. However, the PPAD Act 2015 describes Public Pension Schemes as public institutions and hence subjected to the guidelines and procedures enshrined in the Act. The enactment of the PPAD Act 2015 was definitely a game changer on how the public pension schemes are administered. The study sought to determine strategic issues in the implementation of the PPAD Act 2015 by public pension schemes in Kenya. The study was anchored on stakeholder’s theory and administrative theory in providing theoretical backings relevant to the research. The study adopted a descriptive survey design and cross-sectional survey approach targeting 190 public pension schemes. The research sampled 40 pension schemes for data collection using structured questionnaire. The study adopted descriptive statistics in analyzing collected data. The study recorded a 90% response rate from the returned questionnaires. The study findings revealed that strategic issues such as administration, governance, strategic leadership and professionalism influenced implementation of PPAD Act of 2015. Further, the study revealed establishment of procurement departments/function in public pension schemes since the enactment of the Procurement Act. Also, the study findings unveiled that clear definition of procurement head roles versus those of the accounting officers and defined disciplinary procedure for corrupt officers have great influence on governance issues whilst possession of analytical skills for accounting officers and procurement heads leads to strategic leadership. Additionally, findings indicated the importance of professionalism and activities such as procurement audits in the administration of public pension schemes. The study concluded that strategic issues have great influence in the implementing PPAD Act 2015 by public pension schemes. The study recommended use of technology in procurement processes and employment of procurement heads with the relevant professionalism as stipulated in the PPAD Act to help in its implementation. The study is important to policy makers, Government of Kenya, the private sector and scholarly world while it contributes to theoretical approaches and further investigations in related areas of study.