Challenges Affecting The Implementation Of Preference And Reservation Scheme To Special Groups In Tertiary Institutions

Abstract

The study’s purpose is to assess the challenges affecting the implementation of preference and reservation scheme to special groups in public procurement. Specifically the study aims to examine how access to finance by special groups, training of special groups, tender evaluation committees’ competence, and regulatory framework affects implementation of preference and reservation scheme in Tertiary institutions in Nyeri County. The was guided by Institutional Theory and Empowerment Theory to understand the concept behind preference and reservation scheme in public procurement and its implication in empowering disadvantaged groups. Descriptive study design adopted for the study. The target population comprised 147 respondents drawn from staff working in the procurement function, finance department, head of departments regular involved in tender evaluation, registered suppliers, and prequalified tenderers in Tertiary Institutions from whom a census was done. A pilot study was done at Michuki Technical Training Institute to enable refining the research instrument for clarity. Cronbach Alpha coefficient with a value of 0.70 or more than was considered to designate that the instrument is reliable. The study achieved a response rate of 89.8%. Data analysis was conducted using statistical package for social sciences (SPSS) to generate descriptive and inferential statistics. Frequencies and percentages were generated from the data and presented using tables, pie charts and bar charts while bivariate and multiple regression analysis was done to establish relationship of each parameter of the independent variables in the study. The study findings revealed that access to finance by special groups, training of special groups and regulatory framework had positive and significant effect on implementation of preference and reservation scheme. Tender evaluation committees’ competence had positive but insignificant effect on implementation of preference and reservation scheme. In addition, most of the special groups face major challenges and constraints in accessing funding to enable them supply goods and services even after being issued with LPO/LSO as the banks takes time to lend this clientele base due to their unique characteristics who pose a high risk of default. These include lack of securities and credibility (for debt financing), lack of existing business, lack of personal savings and resources, low credit-scoring among others. The study recommends that government should develop intervention strategies or policies to ensure easy access to fund by special group to enable them participate in public procurement. The study further recommends a review of Public Procurement to provide supportive regulatory framework which will establish an independent body that will facilitate continuous capacity developments of the disadvantages groups and establish mechanism for regular compliance audit since the current regulation is not clear on action to be taken on non-compliance. Future research could focus on undertake comparative studies covering other Counties so as to validate whether the findings can be generalized