PROJECT

ACKNOWLEDGEMENT I am grateful to Almighty God for blessing me with good health throughout my college years. I would also like to thank my family for their unwavering support and encouragement. I would also like to express my gratitude and praise to my boss, Dr. Rose Gathii for her support throughout the stages of her research project. iii

2.9 Conceptual framework ............................................................................................... 13 Figure 2. 1 Proposed Conceptual Framework ............................................................... 14 CHAPTER THREE ....................................................................................................... 15 RESEARCH METHODOLOGY ................................................................................ 15 3.1 Introduction .................................................................................................... 15 3.2 Research Design .......................................................................................................... 15 3.3 Population of the study ............................................................................................... 15 3.4 Data Collection ............................................................................................................ 16 3.5 Data Analysis ............................................................................................................... 16 CHAPTER FOUR ............................................................................................................. 17 DATA ANALYSIS AND INTERPRETATION OF FINDINGS ................................... 17 4.1 Introduction ................................................................................................................. 17 4.2 Response Rate ............................................................................................................. 17 4.3 Demographic information of the respondents .......................................................... 17 4.3.1 Gender ....................................................................................................................... 17 Table 4.1 Gender ............................................................................................................... 17 4.3.2 Age ............................................................................................................................. 17 4.4 Education level ............................................................................................................ 18 4.6 Influence of cost on implementation of sustainable procurement ................ 19 4.7 Stakeholder ........................................................................................................ 19 Table 4.5 Role of employees in supporting sustainability ............................................. 19 4.7.2 The Degree to which employees support sustainability ........................................ 19 Table 4.6 The degree to which employees support sustainability ................................. 20 4.7.3 Lack of engagement with suppliers as potential barrier in driving forward the sustainability agenda ........................................................................................................ 20 Table 4.7 Lack of engagement with suppliers as potential barrier .............................. 20 4.7.4 To what degree is lack of engagement with suppliers a potential barrier in driving forward the sustainability agenda ...................................................................... 20 vi

ABSTRACT Procurement has recorded a great success as a competitive tool to many organizations globally. Stakeholders in procurement regularly demand for effective and efficient service delivery. Owing to the liberalization of economies, the business environment has become intricate because of the risk factors dominant in the market, especially within the supply chain. The objective of the study is to determine the factors influencing the implementation of sustainable procurement in the county government of Kisumu. The research methodology was descriptive in nature. A descriptive research design was applied to Kisumu county government employees. This study adopted stratified random sampling technique to select a sample size of 50 respondents. The most important instrument for data collection is a structured questionnaire with open questions. The collected data were analyzed using quantitative methods and processed using descriptive statistical methods, and the results are presented in percentages in figures and tables. 1

iii. What is the influence of government legislation on the implementation of sustainable procurement in Kisumu County? iv. Does the application of ICT influence the implementation of sustainable procurement in Kisumu County? 1.5 Justification of the Study The study benefits the county government of Kisumu by aiding the implementation of sustainable procurement programs, understanding influencing factors, and mitigating barriers. It also educates the public on the global impacts of sourcing decisions. Other counties can learn and implement sustainable procurement, contributing to national development goals. 1.6 Significance of the Study The study can drive positive change within Kisumu County Government by identifying and addressing factors hindering sustainable supply chain practices. It contributes to efficiency, cost reduction, community development, policy development, and knowledge sharing, aligning with sustainable development goals. 1.7 Scope of the Study The study focuses on factors influencing sustainable procurement in Kisumu County, addressing the influence of cost, government legislation, stakeholders, and information communication technology. The geographical scope is Kisumu County, chosen for its recent growth and improvements 4

important factor an organization should consider while making corporate financing policies”. New Institutional Economics is therefore relevant in this study since it recognizes the complexities and risks within the organization and which affects its performance. 2.3 Procurement Risk Management This is a process of handling risks either by proactively mitigating them or by reactively responding to them (Chopra and Sodhi, 2004). According to Brindley (2004), "Sustainable procurement is the management of procurement risks through coordination or collaboration among the procurement partners so as to ensure profitability and continuity". In consideration of the certainty that not all the environmental factors that affect an organisation can be managed, it will be necessary for an organisation to understand the prevailing information on the basis of which probabilities present is formed in more or less imperfect way. Cousins, (2004) identify financial losses, product quality reduction, loss of goodwill amongst Procurement stakeholders and damages to properties as some of the consequences of ineffective management of risks. Mitchell (1995) suggests that collaborating with suppliers, building partnerships, forming strategic alliances, and developing and evaluating suppliers can help reduce risk. 2 . 4 S us t a in a b le p ro cu rem en t Process / Practices Some organizations have traditionally entrusted managers to manage such risks that face them (Shimpi, 2001). Jorion (2001) posits organizations can succeed if they acknowledge risks and manage them properly. For effective management of risks, the organization`s top management support is paramount. Organizations will therefore be advantaged to establish risk management practices to mitigate various risks facing the organization. According to Kersnar (2009), the formal process of managing risks includes; risk identification, analysis, evaluation and control. 2.3.1 Risk Identification According to Simmons (2000), “Defining business objectives is a risk-taking process because it is difficult to identify potential risks when an organization does not know where it is going. As Kersnar (2009) also points out, the risk identification process should strive to eliminate ambiguity, contradictions, disagreements, and other ambiguities as much as possible. Should. Gates (2006) also points out that internal auditors and department heads. 7

Therefore, organizations should establish a risk management committee to synergize the overall risk management process and improve organizational performance (Hermanson 2003; Selim and McNamee 1999). 2.5 Supplier relationship management Supplier relationship management improves the management of procurement risks and uncertainties (Lavastre, Gunasekaran, Spalanzani, 2014). Therefore, improving supplier relationship management improves sustainable sourcing and organizational performance. Key elements of supplier relationship management (supplier evaluation) include supplier visits during supplier selection, approval of the supplier list provided to the purchasing department to ensure supplier qualification, and typically delivery performance. This is a supplier evaluation conducted when evaluating. ISO certification of suppliers (Chemoiwo and Karanja, 2016). 2.6 Organizational Performance Organizational performance is multidisciplinary and is highly influenced by many variables and theories. At the strategic level, organizational performance is based on organizational theory, systems theory, and contingency theory. Organizational theory focuses on the organization as a whole and its structure (Jones, 1995). The dominant management paradigm is the dominant way of perceiving, thinking and doing things, based on emergency management (Wooton, 1977). Contingency theory of management involves situational analysis and action that integrates various forms of knowledge within an organization into effective management strategies (Tosi and Carroll, 1976). Systems theory resists reductionism and promotes holism (von Bertalanffy, 1973). It focuses on the relationships between parts that combine them to form a whole (Flood and Jackson 1995). Systems theories of organizational performance therefore view organizations and their internal departments as open systems that interact freely with each other and with the environment. According to Tomazevic (2015), most government agencies satisfy customers through timely and efficient operations, providing quality services, increasing employee satisfaction, and improving relationships with stakeholders. I am trying to do so. Performance measurement models should include service delivery, project implementation reviews, value for money, and employee satisfaction as key variables. Boyle (2000) also argues that performance management systems in public organizations focus on his three main perspectives on 10

and Norman (2008) conducted a study in Sweden to evaluate the performance of sustainable procurement programs as a preliminary approach. They argue that in a procurement environment it is more difficult to assess what type and level of risk an organization will undertake, as the amount of risk an organization undertakes will depend on the type of business model in which it operates. I discovered that. What type of risk leadership exists within the organization? They also found that people are very important in the process of risk management in organizations. Therefore, it is important to assess whether people are aware of the procurement context and whether they are using risk management tools and techniques to work with suppliers. Regionally, the following studies attempted to discuss the literature related to this study. Mohamed (2015) conducted a study on sustainable sourcing at his Pharco Pharmaceuticals, an Egyptian pharmaceutical company. He realized that he considered external risks to be more important than internal risks. The investigation also found that the company did not have a clear strategy to mitigate most of its procurement risks. 2.9 Conceptual framework A conceptual framework is based on a broad set of concepts used to explain the perceived existing correlations between the variables under study (Coulthard, 2004). In this study, sustainable procurement performance in County Governments is measured using the dependent variables determinants of procurement performance, socio-demographic factors, stakeholders, project finance, ICT implementation, public procurement, and waste disposal laws. 13

Intervening Variable Job satisfaction Customer satisfaction Adoption of ICT Accountability Communication Infrastructure Collaboration Stakeholders involvement Top management t Employees Suppliers Community Sustainable Procurement Efficiency Effectiveness Project Financing Inadequate planning Non transparent procurement procedures Poor contract management Public Procurement and disposal Act Public Procurement and Oversight Authority Procurement professionalism Staff Competency Communication skills Cost of unethical Behaviors Training and Experience Figure 2. 1 Proposed Conceptual Framework Independent Variable 14 Moderating Variable Dependent Variable

CHAPTER THREE RESEARCH METHODOLOGY 3.1 Introduction This chapter presents the research methodology that was used to carry out the study, explaining the selection of the research design, data collection, and how data was analyzed. 3.2 Research Design A case study research design was adopted in this study. According to Yin (1981), “A case study is an empirical inquiry that investigates a contemporary phenomenon within its real-life context, especially when the boundaries between the phenomenon and context are not clearly evident.” “It is a research strategy preferred when "how" or "why" questions are being posed, when the investigator has little control over events, and when the focus is on a contemporary phenomenon within some real-life context.” (Yin, 1981). In this case, it was relevant in achieving the objective of the study since the findings are expected to give insight and an in-depth understanding of sustainable procurement practices put in place and their impacts on organizational performance. 3.3 Population of the study The population of the study comprised all relevant stakeholders involved in the procurement processes within the Kisumu County Government. This includes procurement personnel, government officials responsible for policy development, vendors and suppliers involved in procurement activities with the county, and other key individuals involved in decision-making and implementation related to sustainable procurement practices as shown in table 3.1 below: S / N Department Sample size 15

o 1 Procurement 17 2 Finance 8 3 Administration 5 4 Audit 3 5 Contractors and Suppliers 10 6 . Information and Technology 7 TOTAL 50 3.4 Data Collection Primary data was collected through questionnaires. Secondary data was also used to check the validity and reliability of the information provided by the respondents. Documents such as budgets, procurement plans, audit reports, organizational charts, were reviewed by the researcher to verify the data provided by the respondents. The same questionnaire was used to obtain data from the two interviewees and check the reliability of the information 3.5 Data Analysis The data contained in the interview guide was analyzed using qualitative analysis. Qualitative analysis is performed using content analysis. This helpede the researcher to observe and get a detailed description of the elements that are the subject of the study. The themes used in the analysis fall into two categories; sustainable procurement practices and organizational performance parameters. The responses obtained from both the Director of Procurement and the Director of Audit was analyzed to identify the sustainable procurement practices implemented by Kisumu County Government and how it impacts its performance. 16

CHAPTER FOUR DATA ANALYSIS AND INTERPRETATION OF FINDINGS 4.1 Introduction This chapter presents the results for the respondents selected from the Kisumu County Government. Results were presented in table and figure format. This was done in terms of response rates, quantitative and qualitative data analysis, and discussion of research findings and conclusions. 4.2 Response Rate Of the 80 questionnaires distributed, 65 respondents completed the questionnaire, resulting in a response rate of 85%. This is a reliable response rate for data analysis, as Mugenda and Mugenda (2003) point out that a response rate of 70% or higher is good for generalizability. 4.3 Demographic information of the respondents This section provides data on age, gender, education level, employment and work history. 4.3.1 Gender Male were 60% and female were 40% of the respondents, which is due to the fact that men dominate the business field and this is by by the general fact that 17

most men are the breadwinner of their family. Table 4.1 Gender Category Frequency Percentage Male 12 60.00% Female 8 40.00% Total 20 100% 4.3.2 Age Data shows that most of the employees are over 40 years old, with 10 employees over 40 years old accounting for 50% of all applicants, and 8 employees over 25 years old accounting for 30% of all applicants. The proportion is even lower for those under 25 years of age. Table 4.2 Age Category Frequency Percentage 18-25 years 2 20.00% 26-35 years 4 30.00% 36-40 years 4 30.00% 41-45 years 10 50.00% Totals 20 100% 4.4 Education level According to the data, 75% of respondents have a university degree, 20% of respondents have diploma, and 20% of respondents have a master's degree. Therefore, the researcher concluded that all the respondents were intellectuals and would contribute effectively to the achievement of the research objectives. Table 4.3: Level of education Education Level Frequency Percentage PHD 0 0.00% Masters 4 20.00% Degree 15 75.00% Diploma 1 5.00% Total 20 100% 18

4.5 Analysis of working experience According to the study, 10% of respondents have been with their organization for 1-2 years. 20% of all respondents said that they had worked for the organization for 3 to 5 years. Thirty of the respondents said they had been with the organization for six to eight years. Meanwhile, 40% of respondents have been with their organization for 9- 10 years. Based on the survey, it can be concluded that the majority of the respondents have been working in the organization for at least 10 years and have sufficient experience. Table 4.4 Analysis of working experience Period Frequency Percentage 1-2 years 1 10.00% 3-5 years 5 20.00% 6-8 years 2 30.00% 9-10 years 4 40.00% Total 12 100% 4.6 Influence of cost on implementation of sustainable procurement. The results showed that most respondents (94%) agreed that sustainability efforts exceed specifications and thereby reduce costs. The study found that 75% of respondents believe that sustainability initiatives reduce the costs of complying with environmental and social regulations and eliminate the costs of limiting the impacts that pollution can cause. I also found that I agree with this idea. When respondents were asked about sustainability efforts to reduce internal costs, 70% of respondents agreed with this fact. 4.7 Stakeholder 4.7.1 Role of employees as stakeholders in the implementation of sustainable procurement . The majority of respondents (80%) answered yes, while 20% disagreed with this statement. This means our employees play a key role in driving sustainability. Table 4.5 Role of employees in supporting sustainability 19

Participation and impact frequency Percentage Yes 16 80.00% No 4 20.00% Total 20 100% 4.7.2 The Degree to which employees support sustainability The purpose of this research was to investigate the extent to which employees play a key role in promoting sustainability. The majority of respondents (50%) believe that employees play a very important role in supporting sustainability, and 30% of respondents believe that employees play a very important role in supporting sustainability while a minority of 20% who felt that employees could make a small contribution to promoting sustainability. This suggests that employees have an important role to play in promoting sustainability. Table 4.6 The degree to which employees support sustainability Degree frequency Percentage Large extent 10 50.00% Fairly 6 30.00% Little extent 4 20.00% Total 20 100% 4.7.3 Lack of engagement with suppliers as potential barrier in driving forward the sustainability agenda The aim of this study was to find out whether the lack of cooperation with suppliers is a potential obstacle to the further development of the sustainability agenda. The majority of respondents (70%) answered yes, while 30% disagreed with this statement. This means that lack of collaboration with suppliers is a potential barrier to advancing the sustainability agenda. Table 4.7 Lack of engagement with suppliers as potential barrier participation Frequency Percentage Yes 16 70.00% No 4 30.00% Totals 20 100% 20

4.7.4 To what degree is lack of engagement with suppliers a potential barrier in driving forward the sustainability agenda The majority of respondents (60%) feel that a lack of collaboration with suppliers is a major potential barrier to advancing the sustainability agenda, while 30% of respondents feel that a lack of collaboration is a significant barrier to advancing the sustainability agenda. agenda. A minority of 10% felt that a lack of collaboration with suppliers was to some extent a potential barrier to advancing the sustainability agenda. Therefore, it can be concluded that lack of cooperation with suppliers is a potential barrier to advancing the sustainability agenda. Table 4.8 The degree to which lack of engagement with suppliers is a potential barrier in driving forward the sustainability agenda Degree Frequency Percentage Large extent 10 60.00% Fairly 6 30.00% Little extent 4 10.00% Total 20 100% 4.8 Government Legislation Most respondents (85%) use procurement to help government departments and local governments purchase solutions that contribute to community, environmental, or diversity and equality goals. It turns out that we agree that we can work on it. The survey found that 95% of respondents believe government purchasing power can apply sustainable procurement principles to make a convincing case to those in the private sector who oppose sustainable procurement practices. It turns out that they agree with this idea. When asked whether regulations can create incentives for environmental performance within facilities, respondents answered 80%. 4.9 Impact of developing and applying ICT The majority of respondents (60%) said yes, while 40% disagreed with this statement. This suggests that the development and utilization of ICT can contribute to sustainable procurement. 21

Table 4.10 Impact of developing and applying ICT Participation and impact Frequency Percentage Yes 14 60.00% No 6 40.00% Total 20 100% 4.9.1 To what degree is developing and applying ICT impacts on sustainable procurement The majority of respondents (60%) believe that the development and use of ICT contributes significantly to achieving sustainable procurement, and 30% of respondents believe that the development and use of ICT contributes significantly to achieving sustainable procurement. Minority of 10% believed that the development and application of ICT would contribute to achieving sustainable procurement. Therefore, it can be concluded that the development and utilization of ICT has a significant impact on sustainable procurement. 4.9.2 The degree of establishing telecommunication services, internet or innovation devices The study aimed to find out whether energy is needed for basic telecommunications services, the internet and innovative devices, and whether material consumption needs to be reduced to achieve sustainable economic growth. The majority of respondents (85%) said yes, while 15% disagreed with this statement. Table 4.12 The degree of establishing telecommunication services, internet or innovation devices Participation Frequency Percentage Yes 25 85.00% No 5 15.00% Total 20 100% 4.10 Findings and Discussions 22

4.10.1 Influence of cost in the implementation of sustainable procurement Results regarding the cost impact of sustainable procurement practices show that through sustainable initiatives such as product over specification and reducing product demand, internal costs and costs of complying with environmental and social regulations reduce overall costs showed that reduces costs and achieve sustainable procurement. 4.10.2 Influence of stakeholders in the implementation of sustainable procurement As the findings show, stakeholders have a significant impact on sustainable procurement practices. 50% of respondents agreed, 30% said stakeholders play a fair role in sustainable procurement, and 20% said stakeholders have little influence on sustainable procurement. 4.10.3 Influence of government legislation in the implementation of sustainable procurement The results show that there is a positive relationship between government legislation and sustainable procurement. These results demonstrate that government purchasing power can apply sustainable procurement principles to make a convincing case to those in the private sector who oppose sustainable procurement practices, and that government regulation can promote an institution's environmental performance. 4.10.4 Influence of ICT in the implementation of sustainable procurement ICT has an impact on achieving sustainable procurement. Result shows that ICT is extremely important for achieving sustainable procurement in any organization. Telecommunications services, internet and innovation services also have a positive impact on achieving sustainable procurement. 23

CHAPTER FIVE SUMMARY, CONCLUSION AND RECOMMEDATIONS 5.0 Introduction This chapter provides summary, conclusion, recommendations and suggestions for further research of the research topic. 5.1 Summary The general objective of this study was to identify the factors that influence sustainable procurement practices in the county governments sector. The study was conducted comprehensively and the results regarding the variables were collected and analyzed accordingly. Data collection was primarily done using questionnaires completed by the respondents. The information collected was collected and analyzed one by one. Although some of the information collected through the questionnaire was not conclusive, the useful information was put to good use and the information obtained from it was satisfactory. This study focused on four main areas, which also form the specific objectives of the study. The four main areas included the impact of costs on sustainable procurement, the impact of stakeholders on sustainable procurement, the impact of government legislation on sustainable procurement, and the impact of the application of ICT on sustainable procurement. Each area was examined in detail, demonstrating the direct relationship between costs, stakeholders, government legislation and sustainable procurement, as well as the indirect relationship between ICT and sustainable procurement. It is clear that there is a direct relationship between costs, stakeholders, government legislation and sustainable procurement, and an indirect relationship between ICT and sustainable procurement. 5.2 Conclusion The study found that sustainability efforts reduce costs. Of all respondents, approximately 85% agreed that sustainability efforts reduce over specification. Sustainability analysis allows users to reduce over-specification of many products and services, resulting in lower costs. For many products, sustainability allows investment in more efficient products (lower energy consumption, longer lifespan, lower maintenance costs), replacing increased investment costs with lower operating costs, resulting in lower overall costs. The study concluded that employees have an important role to play in supporting 24

sustainability and innovation. In addition to training, time, and resources, it specifically requires management involvement. The study also found that a lack of supplier engagement is a potential barrier to advancing the sustainability agenda. Close collaboration between suppliers and counties will help avoid duplication of specification information and improve accuracy. If external champions, such as suppliers, have a narrow focus, this can create barriers to considering a broader approach that covers the full spectrum of sustainable sourcing. This study found that government departments and local governments can use procurement to pursue specific objectives of their choice when purchasing solutions that contribute to community and environmental goals. Sustainable procurement helps local governments save money, improve their economies, and meet their environmental goals. This study also demonstrated that regulation can create incentives for environmental performance within facilities. In the face of major socio-economic and environmental challenges such as globalization and climate change, governments are increasingly concerned with ensuring that actions meet current needs without compromising future needs. The study concluded that insufficient development and application of ICT can exacerbate the world's problems. The study also showed that basic telecommunications services, the Internet, or innovative devices require energy and material consumption that must be reduced to achieve sustainable economic growth; this can be achieved by the ICT sector driving change and innovation, promoting sustainable business practices and effective standardization of its processes. 5.3 Recommendations 5.3.1 Educate and Communicate A high-level policy framework for sustainable procurement needs to be developed at all levels of the district. This requires educating senior management, purchasing personnel, product specifies, end users, suppliers, and, in some cases, the general public about sustainability policies and practices. A key part of any communication and education plan is to maintain open lines of communication between procurement staff, end users, and suppliers. 5.3.2 Avoid Conflicts and Clearly Define Contract Terms If environmental considerations are to be considered in the county's procurement process, the purpose must be directly stated in the subject matter of the proposal. Defining the desired sustainability criteria in advance creates a level of transparency in the process. Procurement 25

personnel do not need to clarify ambiguity. Rather, the contract itself should work. County procurement regulations should also include provisions that allow for flexibility in sustainable procurement processes. Rather than requiring buyers to select the lowest offer, buyers should be given the opportunity to select the lowest and most economically advantageous offer. Governments should use procurement to address challenges when purchasing solutions that contribute to community and environmental goals, or diversity and equality goals. The ICT sector must drive change and innovation to foster sustainable business practices and effective standardization of processes. 5.4 Suggestions for Further Research The study was satisfactory but not conclusive; hence the researchers suggested some additional areas that can be investigated to shed further light on sustainable procurement as follows. Study should be conducted to identify the factors that influence sustainable procurement in the private sector. A study should also be conducted to identify challenges in improving sustainable procurement in the public sector. Some of the investigated variables have not been investigated in detail, so it is necessary to narrow down to specific variables and surgically investigate them, such as how the use of ICT affects sustainable procurement practices. 26

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APPENDICES Appendix I: QUESTIONNAIRE PART 1: GENERAL INFORMATION a) Gender (a) Male [ ] (b) Female [ ] 2. Age (a) 18-25 years [ ] (b) 26-35 years [ ] (c) 36-40 years [ ] (d) 41-45 years [ ] 3. Marital Status a) Single [ ] c) Divorced [ ] b) separated [ ] d) Married [ ] 4. Managerial level a) senior managers [ ] c) middle managers [ ] b) Junior staff [ ] 5. Highest level of education a) Secondary [ ] b) College [ ] c) University [ ] 6. For how long have you worked at the county government of Kisumu? 31

a) 1-2years [ ] d) 9-11 years [ ] b) 3-5 years [ ] e) 12 and above [ ] c) 6-8 years [ ] 7. briefly outline your duties in the organization ………………………………………………………………………………………………… ………………………………………………………………………………………………… ……………………… .................................................................................................................. PART 2: STAFF QUESTIONNAIRE PART B: GOVERNMENT LEGISLATION AND ICT 15. Please indicate the extent to which you agree with the following statement on government legislation by ticking the appropriate number against each using the scale given below. 1-Strongly Agree 2-Agree 3-Neutral 4-Disagree 5-Strongly Disagree 1 2 3 4 5 Does government legislation affect sustainable procurement? Government purchasing power can apply sustainable procurement principles to present a persuasive case to those in the private sector resisting sustainable procurement practice. 32

16. Do you agree with the statement that if we develop and apply ICT badly, it could add to the world’s problems? 17. Does cost affect the sustainable procurement of the County government? Yes [ ] No [ ] TEST ITEMS OPINION SA (5) A (4) N (3) D (2) SD (1) 18. E-Procurement influences cost saving. 19. E-Procurement affects sustainable procurement. 20. Enterprise resource planning influences cost saving. 21. Enterprise resource planning affects sustainable procurement. 22. What are the problems related to ICT when effectively managing sustainable procurement in county government? 33