The influence of procurement management practices on the Performance of road infrastructure projects in Nairobi county, Kenya

Abstract

The effectiveness of procurement management practices significantly influences road infrastructure projects in Kenya. Despite the Public Procurement and Asset Disposal Act, inefficiencies persist, leading to cost overruns, delays, and substandard project outcomes. The Ethics and Anti-Corruption Commission estimates an annual loss of KSh 100 billion due to corrupt procurement practices, exacerbating resource wastage and hindering infrastructure development. This study examines the impact of procurement management practices on road project performance in Nairobi County, addressing procurement risk management, open contracting, procurement audits, and supplier performance management. The purpose of the study was to evaluate how procurement management practices affect road project outcomes. The study applied a descriptive survey design targeting 140 procurement professionals with a sample size of 104 involved in public road projects conducted between 2019 and 2024. Primary data was collected using structured questionnaires, and both descriptive and inferential statistics were employed in analysis. Descriptive results showed that 50% of respondents consistently identify risks, while 60% rate their risk assessment practices as effective. Yet, only 20% conduct monthly risk monitoring, indicating gaps in proactive procurement risk governance. Mean scores for strategies like supplier diversification (x̄ = 2.33) and compliance audits (x̄ = 2.48) suggest moderate adoption across organizations. In terms of open contracting, 60% of respondents reported transparent procurement processes, 66% confirmed active stakeholder engagement, and 40% utilized electronic procurement platforms. For procurement audits, 65% of organizations conducted regular audits, and 65% rated their fraud detection systems as effective or highly effective. On supplier performance management, 72% of respondents rated their systems as effective, with 80% using key performance indicators and 65% relying on supplier scorecards. Regression analysis revealed that procurement risk management practices significantly affect project outcomes: risk identification (β = 0.312, p = 0.000), risk assessment (β = 0.265, p = 0.005), and risk mitigation (β = 0.229, p = 0.002) were strong predictors of project cost and time efficiency. Similarly, open contracting variables transparency (β = 0.318, p = 0.001), stakeholder engagement (β = 0.277, p = 0.004), and standardized data formats (β = 0.243, p = 0.006) had a significant impact on procurement accountability. Audit practices also influenced outcomes positively, with implementation of recommendations (β = 0.311, p = 0.000) and fraud detection measures (β = 0.289, p = 0.002) being particularly effective. Supplier performance strategies showed the strongest effect on project success, with performance management (β = 0.319, p = 0.000) and risk assessments (β = 0.276, p = 0.003) correlating with improved efficiency. The study offers practical recommendations for enhancing procurement governance, including investment in digital procurement tools, consistent audit practices, and supplier relationship management. Findings v contribute to policy and scholarly discourse by contextualizing Transparency and Risk Management theories within Kenya’s infrastructure sector and by offering actionable insights for sustainable, accountable, and cost-effective public procurement practices.