Determinants of Procurement Performance of Commercial Banks in Mombasa County-A Case Study of Kenya Commercial Bank

Procurement encompasses the whole process of acquiring property and/or services. Sound public procurement policies and practices are among the essential elements of good governance. Procurement performance is crucial in enhancing the performance of organizations because whatever gets measured gets done. The procurement function has not been given the recognition it deserves in developing countries, in most public entities. Procurement processes are very key in organization such that it determines how and what products will be produced and its qualities thereof. The study used primary data which was collected through use of questionnaires with respondents as the procurement finance and line managers of Kenya Commercial Bank. The general objective was determinants of procurement performance of commercial banks in Mombasa County. The specific objectives were to investigate the effect of e-procurement on procurement performance; to examine the influence of procurement policies on procurement performance; to examine the influence of information systems on procurement performance and to examine the influence of environmental factors on performance of commercial banks in Mombasa County. The study will examine three theories of procurement. Contingency theory is relevant in the study because one thing depends on another thing to be effective therefore for effective procurement measures the organization needs to have strategic measures put in place in procurement department. Theory of internal control is relevant to the study because it outlines the internal control policies, procedures and rules to be followed in the procurement department. Agency theory was relevant to this study because all organizations have people who explain their differences in behavior or decision by noting that two parties often have different goals and, independent of their respective goals, may have different attitudes towards risk. Stratified random sampling method was e used. The study targeted 1200 employees of KCB. The sample was 120 employees of KCB working in Coast region. A modified Likert scale questionnaire was developed divided into three parts. A pilot study was carried out to refine the instrument. The quality and consistency of the study was further assessed using Cronbach's alpha. Data analysis was performed on a PC using Statistical Package for Social Science (SPSS Version 22) for Windows. Analysis was done using frequency counts, percentages, means and standard deviation, regression, correlation and the information generated will be presented in form of graphs, charts and tables. From the study findings, on company profile majority of the respondents had more than two branches. Banks have invested heavily in E-procurement and it has helped in controlling the inventory stocks. Procurement policies have helped in reduction of operating costs hence increasing profits. Information systems has helped to improve quality of services and measuring the performance of the procurement function yields benefits to organizations. Environmental factors when well controlled are beneficial to the general public and help the organization to achieve success. The study recommended that commercial banks should adopt technology in its procurement processes.