Influence of Procurement Risk Management on Procurement Performance of Mega Projects in the Energy Sector in Kenya


Governments around the world face a rising demand for infrastructure. Most governments, including Kenya, are attempting mega projects to bridge the infrastructural gap. Kenya has prioritized, under the Kenya Vision 2030, a number of Mega projects. However most mega projects have, (or are), experienced procurement related challenges, which threaten their efficient implementation thereby threatening achievement the Vision 2030 aimed at transforming Kenya into a middle income Nation. The energy sector, a critical support sector of the Vision 2030 pillars, plans to increase power production by 10,000Mw by the year 2030, from the current estimated production of slightly above 2000Mw, through an array of mega projects. This study set out to examine the influence of Procurement Risk Management on the procurement performance of Mega projects in the energy sector in Kenya. The study entailed a census of all the 47 mega projects under the various public procuring entities in the energy sector. The unit of observation was the procurement managers in the procuring entities dealing with mega projects. Objectively developed questionnaires were used to collect primary data. The data collected was sorted, coded and entered into the computer statistical package (SPSS), for production of descriptive and inferential statistics. The study found that Procurement risk management has a significant influence on procurement performance of mega projects in the energy sector in Kenya. The study also found inadequacies in the ability procurement processes of Mega projects to collect adequate information for contractor evaluation which may lead to contracting unqualified contractors. This study thus recommends enhanced adoption of Procurement risk management practice. It also recommends review of the procurement mechanism to enhance collection of adequate, accurate data for risk pricing (to reduce political interference) and evaluation processes.  

Keywords: Mega Projects, Procurement Performance, Procurement Risk management

Article Review Status: Published

Pages: 1-12 (Download PDF)

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