Effect Of Procurement Reforms On Expenditure Management In Public Secondary Schools Of Nairobi City County, Kenya

Abstract

Public procurement is central to expenditure management and good governance. Prior to the formulation of necessary laws and policies, public procurement was conducted under unclear legal frameworks, which failed to control irregularities and regulate expenditure. The aim of procurement reforms was to enhance operational efficiency and financial discipline; thereby, curb wastage of public resources. The purpose of this study was to establish the extent to which procurement reforms had been implemented in public secondary schools of Nairobi City County and its effect on expenditure management. The evaluation research model three, with both quantitative and qualitative approaches, was applied to guide the research process. Primary data were sourced in May 2015 from deputy principals, as well as members of Parents’ Association (PA) and Boards of Management (BoM). Data analysis techniques included one-way analysis of variance, Chi-square statistic, Pearson’s correlation coefficient, and multiple regression analysis. The study found that the frequency of meetings, the number of trained members of tender committees, and the frequency of tender advertising caused a significant reduction of procurement-related expenditure, which signified improvement (positive effect) in expenditure management. Contrastingly, the frequency of emergency procurement and that of tender splitting caused a significant increment of procurement-related expenditure, which signifies weakness (negative effect) in expenditure management. The study concluded that improving the quality of meetings held by school tender committees should be prioritised to make them more productive; building the capacity of school tender committees is a crucial pillar for the implementation of procurement reforms and management of expenditure. Developing and disseminating tender design guidelines is likely to make advertisements more attractive to bidders and thus, self-financing. Limiting the frequency of emergency procurement is important for effective management of procurement-related expenditure in public secondary schools. Lastly, tender splitting remains both a strategic measure against risks of supplier default, as well as a critical aspect that will negatively affect the management of procurement-related expenditure in public secondary schools, if wrongly applied. The study recommends the need for stakeholders to: train school tender committees on how to plan, organise, and execute productive meetings; develop guidelines for designing tender advertising, thereby, make them self-financing; train school tender committees on procurement planning to enable members develop, execute, and manage procurement plans. Lastly, stakeholders should develop and disseminate appropriate policies to guide the application of tender splitting; thereby, make it a strategy for boosting, rather than stifling procurement reforms in public secondary schools.