Determinants of the Rate of Procurement Practices on Disposal of Assets in Kenya's Public Sector: A Case of the Judiciary

Abstract

Disposal of unwanted assets to the Public is an important aspect of procurement and store management in many organizations. When equipment is in surplus or obsolete, keeping it through maintenance, parking, insurance or storage may lead to exceeding the recoverable amount which can be the result of continued use of the equipment. In Kenya, the public sector has certain disposal guidelines and procedures as stated in the Public Procurement and Disposal Act, 2005, and the Public Procurement and Disposal Regulations, 2006. The PPDA applies to all procurement of works, goods, and services, and also, the disposal of assets by all public entities. Disposal of assets in the Public sector is complex due to the multiple interests from various stakeholders against a backdrop of the objectives it tries to achieve amidst various regulatory bodies or policies which are supposed to be observed. The main goal of this research was to make an assessment on the determinants of the rate of procurement and disposal of the assets in Kenya’s public institutions, a case of the Judiciary. However, the objectives were used in determining the influence of procurement planning on the disposal of assets; determine how accounting and financial risks affect the disposal of the assets, and identifying the effects of the management methods chosen on the rate of disposal of assets. The study adopted a descriptive study design with a case-study approach to the Judiciary. For purposes of this study, the population of interest was 101 respondents from the Judiciary, which included the department heads, deputies, the disposal committees, and procurement and disposal staff. The study adopted a census sampling technique. The collection of primary data was done using a questionnaire research method The findings show that procurement planning, financial and accounting risks, and choice of management methods affected the rate of assets disposal in the Judiciary to a large extent, It also revealed issues such as corruption, political interference, non-adherence to the PPDA provisions, and PPOA inefficiency as impediments to assets disposal effectiveness and further the study also revealed that the legal framework and regulations had an impact on the relationship between determinants of the rate of procurement and disposal of the assets. The study recommended that The Judiciary’s procurement department should consider scaling up efforts and work with diligence in stemming out corrupt officers, and ensure total adherence to set PPDA procedures; include strict disposal procurement planning and adopt the well-researched choice of management methods; allocate resources for update training to the procurement and finance staff, and properly explain stakeholders’ limits and roles when dealing with assets disposal and adopt a proactive and stringent approach.