DETERMINANTS OF SUPPLY CHAIN PERFORMANCE IN THE ENERGY SECTOR IN KENYA: A CASE STUDY OF THE KENYA POWER.

Abstract

The current supply chain management in Kenya energy sector is deficient of an acceptable SCM performance level due to the inability to connect every willing buyer, and the cost of rural electrification by grid development due to dispersion as is expected in the service charter. The general objective of the study was to establish the determinants of supply chain performance in the energy sector in Kenya with an inclination to KPLC. The specific objectives of the study were to; determine the effect of information communication technology on supply chain performance of KPLC; examine the effect of buyer-supplier relationship on supply chain performance of KPLC; determine the effect of procurement professionalism on supply chain performance of KPLC and establish the effect of contract management on performance of KPLC. The study employed a descriptive research design. The researcher used stratified random sampling technique. The study population was 698 employees working in KPLC from which 254 respondents were selected. Questionnaires were used as the main data collection instrument and a pilot study was undertaken to pretest the questionnaires for validity and reliability. For the purpose of analyzing the data that was gathered, and the Statistical Package for Social Sciences Version 24 was utilized in analysis. In order to establish the statistical link between the independent factors and the predicted variable, the study made utilization of the regression model. Descriptive statistics were computed whereby frequencies, percentages and means were clearly shown in the form of both tables and figures. The study revealed that a unit increase in the elements of information communication technology, procurement professionalism, buyer-supplier relationship and contract management will translate to improvement of supply chain performance in KPLC. the study recommends that KPLC and other firms in the energy sector should exploit the aforementioned determinants in a hierarchical order. This would enable KPLC and other firms in the energy sector to focus on the determinants with the most positive significant effect on supply chain performance and prioritize resources allocation and deployment appropriately. The study recommends this order, buyer-supplier relationships, followed by contract management while information communication technology and procurement professionalism should be exploited concurrently.