THE INFLUENCE OF BUDGETARY ALLOCATIONS ON EFFECTIVE PROCUREMENT CONTRACT ADMINISTRATION IN PUBLIC SECONDARY SCHOOLS IN MOGOTIO SUB COUNTY, KENYA

Abstract

The Kenya public institutions lose hundreds of millions of tax payer's money through cancelled contracts,
unfinished projects, poor service or product delivery, corruptions and extended contract periods each year. The study  aimed at achieving the following objectives: To examine whether budgetary allocations affect effective procurement contract administration in public secondary schools in Mogotio Sub County, Kenya. The study used the resource based view theory. The study adopted a descriptive research design using quantitative approaches. The target population of the study was all principals and their deputies of public secondary schools in Mogotio Sub County who total (52) individuals. Since the population was small a census design was used. Closed-ended questionnaires constructed based on a five-point Likert scale were used as data collection instruments. The means of the six components of budget allocation metrics including budgeting allocation assisting to save money due to knowledgeable on the funds availability for each period, the budgeting assisting in efficient allocation of funds in a specific period, budgeting improving the services, and the budgetary allocation leading to prioritization of activities to be undertaken, imposing a restraining influence during allocation of funds, and more time committed to budget preparation leads to better contract administration were calculated through use of SPSS software. The results revealed that all the mean scores for metrics for budgetary allocations fell between 3.5 and 4.49 therefore leading to a conclusion that on average the respondents agreed that budgetary allocations improved contract administration. The standard deviations of budgetary allocations fell between 0.5 and 1 indicating an average variation of responses relative to the mean hence moderate consensus amongst the respondents in respect to the influence of the budgetary allocation on contract administration aspects (least standard deviation being 0.66 and the highest being 0.98). From regression analysis, the study found that a unit increase in budgetary allocation would lead to a 0.591 improvement in procurement contract administration with the other independent variables kept constant. The recommendations of the study included the school management knowing the funds available for each period to enhance savings, and need to undertake budgetary allocation leading to prioritization of activities being undertaken.