EFFECTS OF ASSET DISPOSAL PRACTICES ON PERFORMANCE OF STATE OWNED ENTERPRISES IN KENYA
Abstract
This study sought to establish the effect of asset disposal practices on the performance of state owned enterprises in Kenya. The study targeted all the 187 state owned enterprises senior procurement officers. A descriptive research design was adopted. Coefficient of determination (R2) was used to measure how far the regression model’s ability to explain the variation of the independent variables. The coefficient of determination is between zero and one. The data showed that the high R square is 0.748. It showed that the independent variables in the study were able to explain 74.80% variation in the procurement performance while the remaining 25.20% was explained by the variables or aspects outside the model. This implied that these variables were very significant and they therefore needed to be considered in any effort to boost procurement performance in the state enterprises. The study therefore identifies variables as critical elements of asset disposal practices which affect procurement performance of state owned enterprises in Kenya. The study recommended for a well formulated disposal committee to offer advisory on the ways to reduce costs. They should verify the disposal recommendations to the satisfaction of our customers. The disposal committee should have plans which recognize the current and future risks to the reduction costs and they resolve immediate problems that would disrupt the work. There is need to use the asset approach to evaluate the return on investment to the customer satisfaction. They should use income approach to estimate the impact of activities on maximum value for the properties being disposed. The study recommended that there is need to have a notification of a review and the tender notified as determined by the review board. The review board should complete its review within the stipulated period after receiving the request for the review. There is need to comply with the administrative review procedures to enhance public trust to enhance customer satisfaction. There should be compliance to the prescribed methods of disposal to enhance timely delivery of services. They should comply within a reasonable time after assets become unserviceable, obsolete or surplus. The organization should comply with the criteria for formulation of disposal committee to enhance customer satisfaction.
Key Words: Disposal Planning, Valuation Methods, Disposal Process Audits, Compliance, Asset Disposal
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DOI: http://dx.doi.org/10.61426/sjbcm.v5i4.985
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