The Relationship Between Public Procurement and Sustainable Economic Growth in Kenya
DOI:
https://doi.org/10.53819/81018102t2509Abstract
This paper examined the relationship between public procurement and sustainable economic growth in Kenya, focusing on how procurement policies and practices influence long-term national development. Guided by the Endogenous Growth Theory, the research adopted a descriptive cross-sectional design, collecting data from procurement professionals, senior managers, and policy officers in key government institutions. Findings revealed that public procurement, particularly under the PPADA 2015, has significantly contributed to sectoral expansion, job creation, and the development of local industries through local content requirements and inclusive participation frameworks. Notable economic benefits have been realized in infrastructure, agriculture, and manufacturing sectors, where targeted public spending has strengthened domestic value chains. However, the study also identified critical challenges such as corruption, weak enforcement of sustainability provisions, delayed supplier payments, and inadequate supplier capacity, which limit procurement’s transformative impact. The research concludes that while Kenya’s procurement system has a strong legislative foundation, achieving its full potential requires enhanced policy enforcement, capacity building, and alignment of procurement decisions with national economic transformation goals. The recommendations call for stricter compliance monitoring, timely payments, targeted supplier development programs, and integration of innovation-driven procurement to optimize public spending for sustainable economic growth.
Keywords: Public Procurement, Sustainable Economic Growth, PPADA 2015, Local Content, Inclusive Procurement, Kenya, Endogenous Growth Theory, Supply Chain, Industrial Development, Government Spending.
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