INFLUENCE OF GLOBAL SOURCING ON PROCUREMENT PERFORMANCE OF MEGA PROJECTS IN THE ENERGY SECTOR IN KENYA
Abstract
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 global sourcing on the procurement performance of
Mega projects in the energy sector in Kenya. The study entailed a census of all the 47 mega
International Journal of Economics, Commerce and Management, United Kingdom
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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 SPSS for production of descriptive and inferential statistics. The study
found that global sourcing has a significant influence on procurement performance of mega
projects in the energy sector in Kenya. The study thus recommends sustained adoption of the
global sourcing practice in acquisition of mega projects in the energy sector to enhance the
resultant cost, quality, price, and technological benefits.
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