Role of Public Procurement Preference Scheme on the Growth of Small and Medium-sized Enterprises in Nyamira County, Kenya

  • Rosasi Ombeo Thomas Murang’a University of Technology
  • Oteki Evans Biraori Murang’a University of Technology
  • Grace Mwangi Murang’a University of Technology
  • Ruth Muriithi Murang’a University of Technology
Keywords: Public Procurement Preference Scheme, Growth, SMEs, Waiver on a Bid Bond, AGPO Registration
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The focus of the study is to investigate the role of public procurement preference schemes in enhancing the growth of small and medium-sized enterprises. The general objective of the study was: To investigate the role of public procurement preference schemes in enhancing the growth of small and medium-sized enterprises in Nyamira County, Kenya. The specific objectives included; establishing the role of 30% preference on the growth of small and medium-sized enterprises, to investigate the role of waiver of bid bond on the growth of small and medium-sized enterprises, to establish the role of local firm preference on the growth of small and medium-sized enterprises and to assess the role of easy access to procurement opportunities registration on the growth of small and medium-sized enterprises. The study was guided by agency theory. A descriptive research design was applied to the study. The study population included 35700 registered and licensed SMEs, from where a sample of 391 was arrived at by Yamane’s formula. Data collection involved the use of self-administered questionnaires. Both descriptive and inferential statistics were used to perform data analysis. The results of the model summary indicate that R2 equals 0.498 at a 0.05 significance level, thus revealing that 49.8 % of the SME growth can be accounted for by the public procurement preference scheme. The study concluded that there was a positive influence of public procurement preference schemes on the growth of small and medium-sized enterprises. The study recommended that SMEs may team up with one another under joint bidding in order to get higher chances of preference and also compete with large-sized firms for public procurement opportunities


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14 August, 2023
How to Cite
Thomas, R., Biraori, O., Mwangi, G., & Muriithi, R. (2023). Role of Public Procurement Preference Scheme on the Growth of Small and Medium-sized Enterprises in Nyamira County, Kenya. East African Journal of Business and Economics, 6(1), 277-289.