TOPIC XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

NAME: XXXXXXXXXXXXX

INDEX NO: XXXXXXXXXXXX

THE KITALE NATIONAL POLYTECHNIC

SUPERVISOR: STELLA KHAEMBA

PRESENTED TO: THE KENYA NATIONAL EXAMINATION COUNCIL

(KNEC) FOR PARTIAL FULFILMENT FOR THE AWARD OF DIPLOMA IN
INFORMATION TECHNOLOGY

XXXXX 2024 SERIES

DECLARATION

i
DECLARARTION

The research project is my original work and has not been presented to Kenya
national examination body or any other examination body.

Sign _________________ Date ____________________

NAME XXXXXXXXXXXXXXXXX

Declaration by Supervisor

This project has been submitted for examination with the approval of the supervisor.

Sign _________________ Date ____________________

STELLA KHAEMBA

ii
DEDICATION

I dedicate this research project to my family for their unending support.

iii
ACKNOWLEDGEMENT

I wish to acknowledge the following for their assistance and support in ensuring that
this paper is complete and without whom I could not be able to complete this paper.
My supervisor and lecturer, xxxxxx, and xxxxxxxx for your timely professional
guidance and support throughout this project. The management and staff of Kabarnet
referral hospital for allowing me to conduct this research at their facility and
according me relevant feedback where necessary.

iv
ABSTRACT

The general objective of the study was to determine the effects of asset disposal
practices on efficiency of procurement function at Kabarnet referral hospital. The
specific objectives of the study were: To assess the effects of sale by public tender on
efficiency of procurement function at Kabarnet Referral Hospital, To determine the
effects of destruction of obsolete materials/assets on efficiency of procurement
function at Kabarnet Referral Hospital, To assess the effects of asset transfer on
efficiency of procurement function at Kabarnet Referral Hospital and to examine the
effect of Trade-in on efficiency of procurement function at Kabarnet Referral
Hospital. A case study research design was employed. The study targeted all the 34
employees of Kabarnet referral hospital who are in the following departments:
procurement, stores and transport and logistics. The study used census technique to
sample all the employees in the procurement department, stores and
transport/logistics. The data collection instrument used in the study was the
questionnaire. Data was analyzed through descriptive statistics such as frequency and
percentage. The results were then presented using tables, pie charts and bar graphs. It
concluded that in sale by public tender the hospital management sets the terms,
conditions and deadline, sale by public tender draws attention to the asset being
disposed adding a competitive edge, through sale by public tender the hospital does
not overprice or undersell the property. The study also concluded that the hospital
destroys all items deemed to have no value in order to create space for storing other
materials, all unserviceable stores and equipment beyond economical repair are
usually destroyed. The study recommended that the management of Kabarnet referral
hospital and other public facilities should do their best to avoid disposal of
assets/equipment through destruction they should ensure the least amount of obsolete
materials as this will enhance the efficiency of their procurement function. The study
also recommended that the management of the hospital should encourage asset
transfer to other departments were possible as this ensures that the facility equipment
are well utilized. Further study should be carried out to determine the factors affecting
effectiveness of asset disposal in public hospitals.

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 TABLE OF CONTENTS
DECLARATION ............................................................................................................................. i
DECLARARTION ........................................................................................................ii
DEDICATION ............................................................................................................. iii
ACKNOWLEDGEMENT ............................................................................................................... iv
ABSTRACT................................................................................................................................... v
LIST OF TABLES .......................................................................................................................... ix
LIST OF FIGURES ......................................................................................................................... x
LIST OF ABBREVIATIONS ........................................................................................................... xi
DEFINITION OF TERMS ............................................................................................................. xii
CHAPTER ONE ............................................................................................................................ 1
INTRODUCTION .......................................................................................................................... 1
1.1 Background of the Study ......................................................................................... 1
1.3 Objectives of the study............................................................................................. 3
1.4 Research questions ................................................................................................... 4
1.5 Significance of the Study ......................................................................................... 4
1.6 Scope of the Study ................................................................................................... 4
1.7 Conceptual Framework ............................................................................................ 5
CHAPTER TWO ........................................................................................................................... 6
LITERATURE REVIEW .................................................................................................................. 6
2.1 Introduction .............................................................................................................. 6
2.2 Empirical Literature ................................................................................................. 6
2.2.1 Asset Disposal ....................................................................................................... 6
2.2.1.1 Sale by public tender .......................................................................................... 8
2.2.1.2 Destruction of obsolete materials and assets ..................................................... 9
2.2.1.3 Asset transfer ..................................................................................................... 9
2.2.1.4 Trade in ............................................................................................................ 10
2.4 Critique of the Literature ....................................................................................... 10
2.5 Research Gap ......................................................................................................... 11
3.1 Introduction ............................................................................................................ 12
3.2 Research Design ................................................................................................... 12
3.3 Target Population ................................................................................................ 12
3.5 Validity and Reliability .......................................................................................... 13
3.5.1 Validity ............................................................................................................... 13
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3.5.2 Reliability............................................................................................................ 13
3.6 Data Analysis and Representation ..................................................................... 14
3.7 Ethical Considerations ........................................................................................... 14
CHAPTER FOUR ........................................................................................................................ 15
DATA ANALYSIS, FINDINGS, CONCLUSION AND RECOMMENDATION .................................... 15
4.1 Introduction ............................................................................................................ 15
4.2 Demographic Characteristics of Respondents ....................................................... 15
4.2.1 Gender of the Respondents ................................................................................. 15
4.2.2 Age Distribution of Respondents ........................................................................ 16
4.2.3 Level of Education .............................................................................................. 16
4.2.4 Respondents Duration of Service........................................................................ 17
4.3 Sale by Public Tender ............................................................................................ 17
4.3.1 Advertisement of Equipment/Assets................................................................... 17
4.3.1 Effects of Sale by Public Tender on performance of procurement Function ..... 18
4.3.3 Extent to which sale by public tender affects performance of procurement
function ........................................................................................................................ 20
4.4 Destruction of Obsolete Materials/Assets .............................................................. 21
4.4.1 Destruction of Equipment/Assets ....................................................................... 21
4.4.2 Frequency of Destroying Obsolete Materials/Assets .......................................... 21
4.4.3 Effects of destruction of obsolete materials/assets on performance of
procurement function ................................................................................................... 22
4.4.4 Extent to which destruction of obsolete materials/assets affects efficiency of
procurement function ................................................................................................... 24
4.5 Asset Transfer ........................................................................................................ 25
4.5.1 Transfer of assets from one department to another ............................................. 25
4.5.2 Effects of asset transfer on efficiency of procurement function ......................... 26
4.5.3 Extent to which asset transfer affects efficiency of procurement function ......... 28
4.6 Trade in .................................................................................................................. 29
4.6.1 Trading in of assets with other organizations/individuals .................................. 29
4.6.2 Effects of asset trade in on efficiency of procurement function ......................... 30
4.6.3 Extent to which asset trade-in affects the efficiency of your procurement
function ........................................................................................................................ 31
4.7 Conclusion ............................................................................................................. 33
4.8 Recommendations .................................................................................................. 34

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4.9 Recommendations for further study....................................................................... 34
REFERENCES ............................................................................................................ 35
APPENDIX I: RESEARCH QUESTIONNAIRE ................................................................................ 38
APPENDIX II: Letter from the institution.................................................................. 46

viii
 LIST OF TABLES

Table 1: Population distribution................................................................................... 12

Table 2: Response rate ................................................................................................. 15
Table 3: Age distribution of the respondents ............................................................... 16
Table 4: Respondents duration of work ....................................................................... 17
Table 5: Effects of sale by public tender on performance of procurement function ... 18
Table 6: Frequency of Destroying Obsolete Materials/Assets .................................... 21
Table 7: Effects of destruction of obsolete materials/assets ........................................ 22
Table 8: Effects of asset transfer on efficiency of procurement function .................... 26
Table 9: Effects of asset trade in on efficiency of procurement function .................... 30

ix
 LIST OF FIGURES

Figure 1: Conceptual framework ................................................................................... 5

Figure 2: Gender of the respondents ............................................................................ 15
Figure 3: Educational level of the respondents ............................................................ 16
Figure 4: Advertisement of Equipment/Assets ............................................................ 18
Figure 5: Extent to which sale by public tender affects performance of procurement
function ........................................................................................................................ 20
Figure 6: Destruction of Equipment/Assets ................................................................. 21
Figure 7: Extent to which destruction of obsolete materials/assets affects efficiency 25
Figure 8: Transfer of assets from one department to another ...................................... 26
Figure 9: Extent to which asset transfer affects efficiency of procurement function .. 28
Figure 10: Trading in of assets with other organizations/individuals .......................... 29
Figure 11: Extent to which asset trade-in affects the efficiency of your procurement
function ........................................................................................................................ 32

x
 LIST OF ABBREVIATIONS

G.o.K: Government of Kenya

GDP: Gross Domestic Product

MDGs: Millennium Development Goals

xi
 DEFINITION OF TERMS

Asset disposal Practices which involve selling an asset usually a long-term

practices: asset that has been depreciated over its useful life like
production equipment
Asset transfer: This relates to assets transferred with no expectation of
funds being received. Asset transfer was measured in terms
of internal and external transfer, approved agreement for
equipment transfers and certification of assets before
transfer.
Destruction of obsolete This is where any item deemed to have no value, or
materials/assets: unserviceable stores and equipment beyond economical
repair, may be destroyed or dumped in an appropriate
manner. This was measured in terms of creation of space
for storing other materials, certification before Equipment
Write-Off, and dismantling to use for spare parts.
Sale by public tender: This refers to the process whereby assets are marketed for
sale with or without a guide price and there is a deadline for
all offers. This was measured in terms of terms, conditions
and deadline dates, attention drawn to the asset being
disposed adding hence creating a competitive edge, price
and “no price' aspect .
Trade-in: Assets can be traded in for another asset of equivalent or
different value. This was measured in terms of: disposal of
depreciable assets, reduction of asset disposal losses,
allowing the hospital to always have equipment which are
efficient and encouraging disposal of assets which are no
longer needed in the hospital.

xii
 CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

Government procurement, the purchase of goods, construction services (works) and

other services required by government bodies, accounts for a substantial proportion of
the Gross Domestic Product (GDP) of any country in the world (Arrow smith&
Anderson, 2011). In the 1990s the World Bank embarked earnestly on a program to
reform the public procurement systems of many developing countries around the
world. One of the ways in which the World Bank drove its anti-corruption agenda was
by steering public procurement reform in developing countries with the aim of
reducing corruption in public procurement in those countries, (Williams-Elegbe,
2013).
Therefore, public procurement reforms have occupied a center stage in broad public
sector reforms in Africa and other continents since the late 1990s (Thai, 2009). These
reforms took place in developing countries like Philippines, Croatia, Kenya, South
Africa, Nigeria, Ghana, Botswana, and Zambia among others. Good public
procurement systems were seen as central to the effectiveness of development
expenditure from both national and donor sources. The potential efficiency gains from
better procurement were believed to make a significant additional contribution to
financing achievements of the Millennium Development Goals (MDGs) (Stenberg et
al 2017). In the wake of these public procurement reforms, purchase of goods, works
and services by governments, the world over, have nowadays become specialist
activities undertaken by professionals. These activities are carried out by a specialized
function known as Supply Chain Management function. The supply chain
management function has the responsibility for receipt, custody, distribution and
disposal of very large sums of money in the form of goods. Inventory represents the
largest cost of a company especially for the trading firms, wholesalers and retailers. It
is mentioned as “piles of money” on the shelf and in normal circumstances, it consists
of 20% - 30% of the total investment (Moorthy, Yew &Chelliah, 2010). It is then

1
imperative for the supply chain management function to be managed and operated in
a highly effective and efficient way.

Asset disposal is mostly known as the act of selling an asset usually a long-term asset
that has been depreciated over its useful life like production plant and vehicles
(Celestine, R. (2019). Disposal may be considered as the third life of any item
acquired by a procuring entity; first it is procured and accepted- the procurement
cycle; second it is utilized by the procuring entity in the discharge of its duties-the life
cycle; third it has to be disposed- the disposal cycle (Public Procurement Oversight
Authority, 2009). The user department should have the responsibility of identifying
items to be disposed and where possible assemble them together. The head of stores
should be responsible for identification of stocked items which are candidates for
disposal and the lists of all items identified for disposal should be submitted to the
head of procurement unit or the head of assets management unit depending on the
internal organization of the procuring entity (Public Procurement Oversight Authority,
2009). These submissions should form the basis of the annual disposal plan. The
disposal planning should be done at the same time as the procurement planning.
Procuring entities should dispose of their assets at least once every year. A disposal
committee should be formed to work with the user departments and the head of
procurement to prepare the disposal plan. The disposal committee should recommend,
to the accounting officer, the disposal including the disposal method (Public
Procurement Oversight Authority, 2009).
In Kenya’s government organizations; assets, stores and equipment have been held for
the government’s day to day operations since time immemorial. However, disposing
these stores and equipment’s has become a big challenge. Lack of procurement
planning for disposal, lengthened disposal cycles and financial risks related to
disposal like under pricing goods for disposal are some of the major challenges
bedeviling asset disposal in government organizations in Kenya (Susan &Namusonge,
2014). A study by Ogwengo (as cited in Susan &Namusonge, 2014) recommends that
procedures of disposal in public organizations should be made shorter.
1.2 Statement of the Problem
Asset disposal is a function that is necessary to guarantee that public resources are not
applied to useless unserviceable assets and equipment and that when assets are
disposed of, they are sold at the best achievable value in the market (PPOA, 2009).
2
However, there is a major problem with government organizations in Kenya and
especially in Kabarnet referral hospital in managing unserviceable assets.
This problem has been so severe in government organizations that government has
incorporated asset management in Cabinet Secretaries performance contracts as a key
performance indicator (G.o.K, 2013). The problem is further compounded by the fact
that there is no concrete data available from government or the Kenya Bureau of
Statistics on the amount or value of disposal of unserviceable assets.
A study by Susan and Namusonge (2014) revealed that the rate of asset disposal in the
sub-county level was 35.7% which was quite low. Further, 100% of procurement
personnel agreed that their departments had items that were unserviceable and needed
disposal. These studies clearly bring out the problem to the fore by showing that there
are assets in public entities that require disposal yet the disposal rate is very low.
Therefore, this research sought to assess the effects of asset disposal practices on
efficiency of procurement function at Kabarnet referral hospital.

1.3 Objectives of the study

1.3.1 General Objective

The general objective of the study was to determine the effects of asset disposal
practices on efficiency of procurement function at Kabarnet referral hospital.

1.3.2 Specific Objectives

i. To assess the effects of sale by public tender on efficiency of procurement

function at Kabarnet Referral Hospital

ii. To determine the effects of destruction of obsolete materials/assets on

efficiency of procurement function at Kabarnet Referral Hospital

iii. To assess the effect of asset transfer on efficiency of procurement function at

Kabarnet Referral Hospital

iv. To examine the effect of Trade-in on efficiency of procurement function at

Kabarnet Referral Hospital

3
1.4 Research questions

i. What are the effects of sale by public tender on efficiency of procurement

function at Kabarnet Referral Hospital?

ii. What are the effects of destruction of obsolete materials/assets on efficiency of

procurement function at Kabarnet Referral Hospital?

iii. What are the effects of asset transfer on efficiency of procurement function at
Kabarnet Referral Hospital?

iv. What are the effects of Trade-in on efficiency of procurement function at

Kabarnet Referral Hospital?

1.5 Significance of the Study

The study will benefit the management of Kabarnet referral hospital and the
government as well since the recommendations made on how to effectively dispose
off assets through sale by public tender if implemented will improve the performance
of the procurement function. Also, the study will shed light on which assets can be
profitably disposed off through asset transfer and how this can be achieved to improve
the performance of the procurement function.

The study will also add to the existing body of knowledge on disposal of assets in
organizations.

1.6 Scope of the Study

The study investigated the effects of asset disposal practices on efficiency of

procurement function at Kabarnet referral hospital. Specifically, it investigated:
effects of sale by public tender, destruction of obsolete materials/assets, asset
transfer and trade-in. It was conducted between February 2022 and June 2022

4
1.7 Conceptual Framework

Independent variable Dependent variable

Sale by public tender

Destruction of
obsolete
materials/assets Efficiency of
procurement function

Asset transfer

Trade-in

Figure 1: Conceptual framework

Source: Researcher (2022)

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 CHAPTER TWO

LITERATURE REVIEW

2.1 Introduction

This chapter deals with the theoretical perspective of role of effective asset disposal
and inventory management as discussed by various authors and scholars. It gives the
definition of roles of asset disposal, theories on asset disposal, critique of literature
Disposal of assets and research gaps.
2.2 Empirical Literature

2.2.1 Asset Disposal

Disposal of surplus is frequently entrusted to purchasing and a number of options are

available. For scrap, whether metal, wood, paper or other materials the best course is
disposal to a recognized broker. Better prices may be negotiated if the seller keeps
abreast of the current scrap prices.
There are various disposal methods which are: sale by public auction; sale by open
tender; transfer to another public entity; destruction, dumping, or burying; trade-in;
and disposal to public servants (Public Procurement Oversight Authority, 2009). The
procedure for sale by open tender begins with invitation of bids through publication of
an announcement of tendering proceedings inviting all potential bidders to submit
bids with an indication of the deadline for submission. Stores, equipment and assets to
be disposed should be valued and if necessary, by an independent valuation agent
(Government of Kenya, 2015). The reserve price is a mechanism designed to ensure
that the procuring entity secures money for value when the valuation of the stores,
equipment or asset to be disposed cannot be sufficiently precise (Public Procurement
Oversight Authority, 2009). The tender committee should award the contracts taking
into consideration the evaluation report and the agenda prepared by the secretary of
the tender committee. Notification of contract award should be made to the winning
bidders and at the same time the unsuccessful bidders (Public Procurement Oversight
Authority, 2009). The bidders are given a period of 14 days from the date of
notification of award within which to pay and collect the items failure to which the
contract award lapses. In case of failure to pay for and collect the items awarded, the

6
bidder should forfeit the deposit and the items should be offered to the next highest
evaluated bidder and the items written off the records (Public Procurement Oversight
Authority, 2009).
While applying the sale by public auction method, an auctioneer should also be
appointed through the public procurement process and this auctioneer should be
registered and licensed by the relevant bodies that regulate the auctioneering
profession. Bids should be invited through the publication of an announcement of
auction sale and no prequalification may be conducted for disposal of stores, assets or
equipment under this method (Public Procurement Oversight Authority, 2009).
Procuring entities should prepare an auction list containing all the items to be
auctioned and to ensure that the eligibility criteria do not discriminate any person or
entity and a transfer to a public entity method may be approved by either the
accounting officer or the head of the procuring entity. Transfer should be justified by
the Disposal Committee when preparing the disposal recommendations to the
accounting officer or the head of the procuring entity. The receiving entity may pay
an agreed amount of money for the items or may be issued with the items free of
charge (Public Procurement Oversight Authority, 2009).
Destruction, dumping or burying method too must be approved by the accounting
officer and all destruction, and dumping or burying should be justified by the disposal
committee. The disposal committee should also conduct an evaluation to determine
whether the procuring entity is capable of disposing the stores, assets or equipment by
itself or if it should seek the assistance of an agent or contract a qualified entity. The
disposal committee should conduct a financial evaluation and comparison to
determine if the destruction, dumping or burying method is the most economical
method and promotes efficient use of public funds (Public Procurement Oversight
Authority, 2009).
All trade-ins should be justified by the disposal committee when preparing the
disposal recommendations to the accounting officer or the head of the procuring
entity. The justification should emanate from a combination of the need for the
procuring entity to dispose of the stores, assets or equipment and the need to replace
them immediately and a disposal requirement executed using the trade-in method
should always link directly to a procurement requirement. A trade-in may be initiated
and negotiated with the selected bidder of a procurement requirement as direct

7
procurement subject to justification and approval by the tender committee (Public
Procurement Oversight Authority, 2009).

2.2.1.1 Sale by public tender

The responsibility for the disposal of surplus material and scrap is usually that of the
purchase department. The operating department is usually responsible for declaring
surplus or obsolete raw materials and operating supplies while the Engineering and
Maintenance departments are responsible for replacement parts and maintenance
supplies. The store will be responsible to report on non-moving items and it is usual
for many companies to have a committee to decide on surplus materials (Pham, V.
2019).
The procuring entity should design a form which should contain the following
information: item number; description of item; unit of issue; quantity; date of
purchase; purchase unit price; total purchase price; general condition; disposal
recommendation of the disposal committee; estimated current value; and decision of
the accounting officer (Public Procurement Oversight Authority, 2009). The
following aspects should be considered in planning for disposal: the contents of an
annual disposal plan; budgeting and allocation of funds; independent valuation of
stores; and the award of disposal and documentation of proceedings (Public
Procurement Oversight Authority, 2009). The annual disposal plan of the procuring
entity should include: a detailed breakdown of the stores, assets and equipment to be
disposed of; a schedule of disposal; an indication of the justification; an estimate of
the value of each store, asset or equipment; a reference of the asset register or records
of the stores; an indication of the method of disposal envisaged for each disposal
requirement, including any need for pre-qualification, and the anticipated time for the
complete disposal cycle, taking into account the applicable approval requirements; an
indication of whether the disposal of the stores, assets or equipment will be managed
by the procuring entity or any special agency designated or hired; and an indication of
the resources available for managing the disposal workload (Public Procurement
Oversight Authority, 2009). It is extremely important to ensure that the control
systems associated with scrap disposals are clear and watertight (Susan, A.M.,
Namusonge, G.S. 2014).

8
2.2.1.2 Destruction of obsolete materials and assets

According to (A.J Dilenno 2021) says discarding, destroying and recycling unwanted
products are an important part of any supply chain strategy. After all just tossing old
or unneeded materials is an ineffective and unsafe way to dispose of items that may
contain your intellectual properly. To better handle this element of supply chain, look
to obsolete destruction. Obsolete destruction is the process of earmarking items to be
destroyed and discarded, then documenting that these actions were properly executed.
An obsolete destructions investment also preserves the value of limited time
promotional items by preventing their resale on e-commerce platforms. furthermore;
the practice bolsters the value of new product launches by preventing the
unauthorized sale of products from retired lines that could compete with the new
items. Of course, obsolete destruction also plays a pivotal role in boosting supply
chain sustainability and can even provide an additional source of revenue. Much of
the material in items scheduled for destruction has value as scrap commodities that
can be recycled or sold. Reclaiming materials and reusing them on production lines
and diverting materials from landfills also can increase the profitability of your
business by reducing costs associated with production and waste disposal

Note that if you do plan to recycle materials, it’s important to understand where
obsolete destruction takes place in your supply chain so that you can identify
recyclables before they are inadvertently destroyed.

2.2.1.3 Asset transfer

Asset transfer was measured in terms of internal and external transfer, approved
agreement for equipment transfers and certification of assets before transfer.

According to (Mark Grand,2017) says One of the most fundamental ways a block
chain can be used to support a supply chain is to track asset transfers from one entity
to another. By asset, we mean anything that flows through a supply chain. Having
record of an assets origin and history of transfers is very useful. Having a provenance
that traces an asset back to its manufacture or creation gives you confidence about
where the asset came from. You can avoid stolen or counterfeit assets. If the
provenance does not show that the assets came from the expected origin, you can
assume the asset is counterfeit or stolen and reject the asset.

9
2.2.1.4 Trade in

This was measured in terms of: disposal of depreciable assets, reduction of asset
disposal losses, allowing the hospital to always have equipment which is efficient and
encouraging disposal of assets which are no longer needed in the hospital.

According to (Will Kenton.2021) says trading assets are a collection of securities held
by a firm for the purpose of reselling for a profit. Companies acquire trading assets
with the purpose of trading them for a profit. When a company buys and sells a
trading asset, it is marked at the fair value of the asset. Trading assets include those
positions acquired by the firm with the purpose of reselling in the near term in order
to profit from short-term price movement. The investment portfolio of firm is kept
separate from trading assets. Trading assets are considered current assets as they are
intended to be sold quickly and therefore the value of trading assets need to be
updated on the balance sheet and recorded as a profit or loss on income statement.

2.4 Critique of the Literature

. According to the Public Procurement and Disposal Act 2015 section 3 (1) defines
disposal as a means of divestiture of public assets by such means as sale, rental, lease
franchise, auction or a combination thereof. However, section 129 (3) of the Act does
not provide for any of the foregoing disposal methods as being applicable in surplus
assets disposal in Kenya. This is a serious omission since these methods, if
implemented, could earn MDAs considerable revenue and improve their performance
in public asset management.
The public procurement performance reviews carried out by the Public Procurement
Oversight Authority on MDAs revealed wanting efficiency and effectiveness levels of
public procurement in Kenya. However, the reports have failed to bring out clearly
the role of unserviceable or surplus asset disposal or lack of it, in enhancing the
performance of the procurement functions (PPOA-MOH, 2008; PPOA-MOR, 2009;
PPOA-MOE, 2009). The report ought to have given statistics in terms of the value of
all assets disposed, the procedures used and the statistics of surplus assets yet to be
disposed. This would have helped to interrogate the contribution of disposal of
surplus assets in MDAs performance.

10
2.5 Research Gap

Whereas a handful of literature pertinent to the relationship between unserviceable

asset disposal and organizational performance exists from the global context, the same
is inadequate regionally, in fellow developing countries, and much less locally. From
the global scene, the variables investigated in the present study have been explored
either independently or in relation to other factors other than performance of
government organizations. (SAMBALI, J. 2015). However, none of the authors has
demonstrated, by use of statistics or empirical evidence, how disposal of
unserviceable assets contributes to reduction of inventory maintenance costs and thus
enhancing a procurement function’s performance. Further, locally existing related
literature largely focuses on procurement processes in the public sector as well as
determinants and critical success factors in supply chain management performance,
leaving asset disposal and procurement performance largely unexplored. This is the
major reason why this study was carried out so to bridge the identified research gap.

11
 CHAPTER THREE

RESEARCH METHODOLOGY

3.1 Introduction

This chapter presents a detailed strategy and procedure applied during the study. The
main focus is on research design, target population, sampling technique and
procedure, data collection and instruments and data analysis.

3.2 Research Design

This is the arrangement for collection and analysis of data in a manner that aims to
combine the relevant stages of the research study. A case study research design was
employed. This research design was used because it is effective and easy to carry out
and able to meet the objectives of the study. This design was also found to be suitable
because it allows for detailed study of a certain phenomenon in reference to a specific
area.

3.3 Target Population

The target population for the study is defined as all individuals bearing similar
characteristics of interest to the researcher. The study targeted all the employees of
Kabarnet referral hospital who are in the following departments: procurement, stores
and transport and logistics. The total number of employees in these departments is 34.
This is because the researcher was of the view that they are in the best position to
describe the effects of asset disposal practices on performance of the procurement
function in the hospital. The following table illustrates the distribution of target
population:

Table 1: Population distribution

Department Target Population Sample size

Procurement department 19 19
Stores 7 7
Transport/Logistics 8 8
Total 34 34
Source: HRM Kabarnet Referral Hospital (2022)

12
Sampling is the process of selecting a member of individuals selected to represent the
larger group. Due to the small size of the target population the study used census
technique to sample all the employees in the procurement department, stores and
transport/logistics.

3.4 Data Collections and Instruments

The data collection instrument used in the study was the questionnaires which had
closed ended questions. Closed ended questions were used so as to facilitate ease of
analysis. The use of study questionnaire was the most appropriate data collection
method for this study because the respondents were literate enough to complete the
questionnaires. The other advantage of questionnaire is that the employees were
trained in a similar fashion to allow uniformity to all respondents. It also helped to get
issues concerning the problems being investigated and acquire possible solution. The
respondents were given a period of one week to fill the questionnaire which gave the
respondents humble time to study, understand and fill them accordingly which
provided the researcher with valuable information required for the study.

3.5 Validity and Reliability

3.5.1 Validity

Validity is the degree to which the results from the analysis of actual represent the
phenomenon under study. The researcher sought the expert judgment of the research
supervisor to ensure validity.

3.5.2 Reliability

Reliability is the measure of degree to which results yields consistent results. To test
the reliability of the research instrument, a pilot study was done at Moi teaching and
referral hospital at Eldoret where 5 questionnaires were distributed to the respondents
so as to pre- tests the researchers’ instruments. Reliable and consistent results were
observed and the researcher adopted the instruments on the basis as a reliable tool to
work with.

13
3.6 Data Analysis and Representation

Collected data from the field was edited, coded, categorized to detect errors and to
ensure their completeness. Data was analyzed through descriptive statistics such as
frequency and percentage. The results were then presented using tables, pie charts and
bar graphs.

3.7 Ethical Considerations

Several ethical considerations were observed during the study: first, the researcher
obtained the necessary permits and authorization and approvals before embarking on
the data collection. Secondly, respondents were selected randomly and their personal
or businesses identities concealed. Participation in the study was voluntary.

14
 CHAPTER FOUR

DATA ANALYSIS, FINDINGS, CONCLUSION AND RECOMMENDATION

4.1 Introduction

This chapter presents the findings of the study, and discussions on the same. Data has
been analyzed and presented in form of bar graphs, pie charts, and tables. Out of the
34 questionnaires which were distributed to the respondents only 30 of them were
returned, giving the study a response rate of 88%.

Table 2: Response rate

Response Frequency Percentage

Expected response 34 100
Received response 30 88
Non response 4 12

4.2 Demographic Characteristics of Respondents

4.2.1 Gender of the Respondents

The study sought to find out the gender distribution of the respondents and the
findings are shown in figure 2:

40%

Male
60%
Female

Figure 2: Gender of the respondents

15
The study revealed that 40% were female while 60% were male. Of the two genders
who work at Nakuru Sub-County office. This implies that more males are employed
in Kabarnet referral hospital.

4.2.2 Age Distribution of Respondents

The study also sought to find out the distribution of respondents by age, categorized
and presented the data as shown in table 3:
Table 3: Age distribution of the respondents

Age bracket Frequency Percent

20-25 years 3 10
26-30 years 7 24
31-35 years 7 24
40 years and above 13 42
Total 30 100
The study found out that majority of the respondents 42% were aged 40 years and
above, 24% were aged 26-30 years and 24% of the respondents were aged 31-35years
and 10% were aged 20-25 years.

4.2.3 Level of Education

The research sought to establish the level of education attained by the respondents.
The findings are illustrated in figure 3:

50%
50%
37%
40%
Percentage

30%

20% 13%

10%

0%
Diploma level Bachelors degree Masters level
Level of education

Figure 3: Educational level of the respondents

16
The distribution of the respondents by level of education showed that majority 50%
had attained diploma level of education, 37% had bachelor’s degree level of education
and13% had masters level of education. This implies that majority of the respondents
had attained diploma level of education and above therefore understood the issues
addressed in the questionnaire.

4.2.4 Respondents Duration of Service

The researcher also wanted to establish the duration in which the respondents had
stayed in their current institution and the findings are as shown in table 4:

Table 4: Respondents duration of work

No of years Frequency Percent

1 year and below 3 23
2-3 years 7 37
4-5 years 9 30
5years and above 11 10
Total 30 100

Majority of the respondents 37% had worked with the Kabarnet referral Hospital for
2-3 years, followed by 30%, who had worked for 4-5 years, then 23% who had
worked for 1 year and below and 10% who had worked for 5 years and above.

4.3 Sale by Public Tender

4.3.1 Advertisement of Equipment/Assets

The study sought to determine whether Kabarnet referral hospital advertises for
equipment/assets which are no longer needed for sale and the findings are as shown in
figure:

17
 40%

60% Yes
No

Figure 4: Advertisement of Equipment/Assets

The findings revealed that 40% of the respondents agreed Kabarnet referral hospital
advertises for equipment/assets which are no longer needed for sale while 60%
disagreed.

4.3.1 Effects of Sale by Public Tender on performance of procurement Function

The study sought to determine the effects of sale by public tender on the performance
of the procurement function in Kabarnet referral hospital and the findings are as
shown in table:

Table 5: Effects of sale by public tender on performance of procurement

function

STATEMENT Strongly Agree Not sure Disagree Strongly

agree disagree
Fre % Fre % Fre % Fre % Fre %
q q q q q
In sale by public tender the 18 60 12 40 0 0% 0 0% 0 0%
hospital management sets the % %
terms, conditions and deadline
which positively affect efficiency
of the procurement function.
Sale by public tender draws 9.9 33 12 40 0 0% 8.1 27 0 0%
attention to the asset being % % %
disposed adding a competitive

18
edge that positively affects
efficiency of the procurement
function
The hospital does not overprice or 12 40 12 40 0 0% 6 20 0 0%
undersell the property; instead the % % %
market and individual buyers are
allowed to determine the value
which positively affects efficiency
of the procurement function
The `no price' aspect in sale by 11. 37 12. 43 0 0% 6 20 0 0%
public tender attracts more 1 % 9 % %
genuinely interested buyers and
this positively affects efficiency of
the procurement function
If the property is not sold by the 8.1 27 9.9 33 0 0% 9 30 3 10
tender date, it is usually exposed % % % %
on the open market and this
enhances the efficiency of the
procurement function.

Concerning whether in sale by public tender the hospital management sets the terms,
conditions and deadline which positively affects efficiency of the procurement
function 60% of the respondents strongly agreed and 40% agreed, none of them were
not sure, disagreed or strongly disagreed.

On whether sale by public tender draws attention to the asset being disposed adding a
competitive edge that positively affects efficiency of the procurement function 33% of
the respondents strongly agreed, 40% agreed and 27% disagreed, none of them were
not sure or strongly disagreed.

Regarding whether the hospital does not overprice or undersell the property; instead
the market and individual buyers are allowed to determine the value which positively
affects efficiency of the procurement function40% of the respondents strongly agreed,
40% agreed and 20% disagreed, none of them were not sure or strongly disagreed.

19
Concerning whether the `no price' aspect in sale by public tender attracts more
genuinely interested buyers and this positively affects efficiency of the procurement
function 37% of the respondents strongly agreed, 43% agreed and 20% disagreed,
none of them were not sure or strongly disagreed.

On whether if the property is not sold by the tender date, it is usually exposed on the
open market and this enhances the efficiency of the procurement function 27% of the
respondents strongly agreed, 33% agreed, 30% disagreed and 10% strongly disagreed,
none of them were not sure.

4.3.3 Extent to which sale by public tender affects performance of procurement

function

The study sought to examine the extent to which sale by public tender affects
performance of procurement function and the findings are as shown in figure:

60%

50%
50%

40%
Percentage

30%
30%

20%
20%

10%

0%
Very large extent Large extent Moderate extent
Extent

Figure 5: Extent to which sale by public tender affects performance of

procurement function

According to the findings 30% of the respondents said that sale by public tender
affects the performance of the procurement function to a very large extent, 50% said it
affects to a large extent and 20% said it affects to a moderate extent, none of them
said it affects to a small extent or to a very small extent.

20
4.4 Destruction of Obsolete Materials/Assets

4.4.1 Destruction of Equipment/Assets

The study sought to determine whether Kabarnet referral hospital destroys

equipment/assets which are no longer needed and the findings are as shown in figure:

43%
Yes
No
57%

Figure 6: Destruction of Equipment/Assets

According to the findings 57% of the respondents agreed that Kabarnet referral
hospital destroys equipment/assets which are no longer needed while 43% disagreed.

4.4.2 Frequency of Destroying Obsolete Materials/Assets

The study sought to determine the frequency in which Kabarnet referral hospital
destroys obsolete materials/assets and the findings are as shown in table:

Table 6: Frequency of Destroying Obsolete Materials/Assets

Frequency of destruction Frequency Percentage

Often 9 30
Rarely 15 50
Very rarely 6 20
Total 30 100

21
 The findings revealed that 30% of the respondents said that the organization destroys
obsolete materials/assets frequently, 50% said they destroy rarely and 20% said they
destroy very rarely, none of them said they destroy very frequently.

4.4.3 Effects of destruction of obsolete materials/assets on performance of

procurement function

The study sought to examine the effects of destruction of obsolete materials/assets on

performance of procurement function and the findings are as shown in table:

Table 7: Effects of destruction of obsolete materials/assets

STATEMENT Strongly Agree Not sure Disagree Strongly

agree disagree
Freq % Freq % Freq % Freq % Freq %
The hospital destroys 6 20% 11.1 37% 0 0% 9 30% 3.9 13%
all items deemed to
have no value in order
to create space for
storing other materials
and this positively
affects efficiency of
the procurement
function.

All unserviceable 9.9 33% 14.1 47% 0 0% 6 20% 0 0%

stores and equipment
beyond economical
repair are usually
destroys and this
affects efficiency of
the procurement
function
Unserviceable 14.1 47% 12.9 43% 0 0% 3 10% 0 0%
equipment beyond

22
economical repair and
having no scrap value
are certified on an
Equipment Write-Off
form which positively
affects efficiency of
the procurement
function
Some items which are 18 60% 12 40% 0 0% 0 0% 0 0%
beyond economical
repair are usually
dismantled and used
for spare parts and this
positively affects
efficiency of the
procurement function
Before items like 9 30% 18 60% 0 0% 3 10% 0 0%
electrical tools and
equipment, white
goods are destroyed
they are usually
certified that they are
beyond economical
repair and
thisenhances the
efficiency of the
procurement function.

23
On whether the hospital destroys all items deemed to have no value in order to create
space for storing other materials and this positively affects efficiency of the
procurement function 20% of the respondents strongly agreed, 37% agreed, 30%
disagreed and 13% strongly disagreed, none of them were not sure.

Concerning whether all unserviceable stores and equipment beyond economical repair
are usually destroys and this affects efficiency of the procurement function 33% of the
respondents strongly agreed, 47% agreed and 20% disagreed, none of them were not
sure or strongly disagreed.

Regarding whether unserviceable equipment beyond economical repair and having no

scrap value are certified on an Equipment Write-Off form which positively affects
efficiency of the procurement function 47% of the respondents strongly agreed, 43%
agreed and 10% disagreed, none of them were not sure or strongly disagreed.

On whether some items which are beyond economical repair are usually dismantled
and used for spare parts and this positively affects efficiency of the procurement
function60% of the respondents strongly agreed, 40% agreed and none of them were
not sure, disagreed or strongly disagreed.

Concerning whether before items like electrical tools and equipment, white goods are
destroyed they are usually certified that they are beyond economical repair and
thisenhances the efficiency of the procurement function 30% of the respondents
strongly agreed, 60% agreed and 10% disagreed, none of them were not sure or
strongly disagreed.

4.4.4 Extent to which destruction of obsolete materials/assets affects efficiency of

procurement function

The study sought to determine the extent to which destruction of obsolete

materials/assets affects efficiency of procurement function and the findings are as
shown in figure:

24
 45%
40%
40%

35% 33%

30% 27%
Percentage

25%

20%

15%

10%

5%

0%
Very large extent Large extent Moderate extent
Extent

Figure 7: Extent to which destruction of obsolete materials/assets affects

efficiency

The findings revealed that 27% of the respondents were of the view that destruction of
obsolete materials/assets affects efficiency of procurement function to a very large
extent, 33% were of the view that it affects to a large extent and 40% were of the view
that it affects to a moderate extent, none of them were of the view that it affects to a
small extent or to a very small extent.

4.5 Asset Transfer

4.5.1 Transfer of assets from one department to another

The study sought to determine whether there is transfer of assets from one department
to another in Kabarnet referral hospital and the findings are as shown in figure:

25
 27%

Yes
No

73%

Figure 8: Transfer of assets from one department to another

According to the findings 73% of the respondents agreed that there is transfer of
assets from one department to another in Kabarnet referral hospital while 27%
disagreed.

4.5.2 Effects of asset transfer on efficiency of procurement function

The study sought to determine the effects of asset transfer on efficiency of

procurement and the findings are as show in table:

Table 8: Effects of asset transfer on efficiency of procurement function

Strongly Agree Not sure Disagree Strongly

agree disagree
Freq % Freq % Freq % Freq % Freq %
Internal transfer of 9.9 33% 12 40% 0 0% 11.1 37% 0 0%
equipment is usually
forwarded to the
finance department
for recording and
this enhances
efficiency of the
procurement
function
The hospital has an 18 60% 12 40% 0 0% 0 0% 0 0%
approved agreement

26
for transferring
equipment and this
affects the
efficiency of the
procurement
function
Request for transfer 9 30% 18 60% 0 0% 3 10% 0 0%
of equipment to
other institution is
usually made in
writing and signed
by head of
procurement which
enhances efficiency
of the procurement
function
Equipments are 15 50% 15 50% 0 0% 0 0% 0 0%
transferred with
approval of the
hospital
management and
this enhances
efficiency of the
procurement
function

On whether internal transfer of equipment is usually forwarded to the finance

department for recording and this enhances efficiency of the procurement function
33% of the respondents strongly agreed, 40% agreed and 37% disagreed, none of
them were not sure or strongly disagreed.

Regarding whether the hospital has an approved agreement for transferring equipment
and this affects the efficiency of the procurement function 60% of the respondents

27
strongly agreed, 40% agreed and none of them were not sure, disagreed or strongly
disagreed

Concerning whether request for transfer of equipment to other institutions is usually

made in writing and signed by head of procurement which enhances efficiency of the
procurement function 30% of the respondents strongly agreed, 60% agreed and 10%
disagreed, none of them were not sure or strongly disagreed.

On whether equipments are transferred with approval of the hospital management and
this enhances efficiency of the procurement function 50% of the respondents strongly
agreed and 50% agreed, none of them were not sure, disagreed or strongly disagreed.

4.5.3 Extent to which asset transfer affects efficiency of procurement function

The study sought to determine the extent to which asset transfer affects efficiency of
procurement function and the findings are as shown in table:

30% 30%
Very large extent
Large extent
Moderate extent

40%

Figure 9: Extent to which asset transfer affects efficiency of procurement

function

According to the findings 30% of the respondents said that asset transfer affects the
efficiency of procurement function to a very large extent, 40% said it affects to a large
extent and 30% said it affects to a moderate extent, none of them said it affects to a
small extent or to a very small extent.

28
4.6 Trade in

4.6.1 Trading in of assets with other organizations/individuals

The study sought to examine whether Kabarnet referral hospital trades in assets with
other organizations/individuals and the findings are as shown in figure:

33%

Yes
No

67%

Figure 10: Trading in of assets with other organizations/individuals

According to the findings 67% of the respondents agreed that Kabarnet referral
hospital trades in assets with other organizations/individuals while 33% disagreed.

29
4.6.2 Effects of asset trade in on efficiency of procurement function

The study sought to determine the effects of asset trade in on efficiency of

procurement function and the findings are as shown in table:

Table 9: Effects of asset trade in on efficiency of procurement function

STATEMENT Strongly Agree Not sure Disagree Strongly

agree disagree
Freq % Freq % Freq % Freq % Freq %
Assets which are 18 60% 12 40% 0 0% 0 0% 0 0%
depreciable are
usually disposed off
through asset trade
– in and this
enhances the
efficiency of the
procurement
function
Asset trade-in 23.1 77% 6.9 23% 0 0% 0 0% 0 0%
reduces asset
disposal losses and
this enhancesthe
efficiency of the
procurement
function
Asset trade-in 8.1 27% 12.9 43% 0 0% 9 30% 0 0%
allows the hospital
to always have
equipments which
are efficient and this
enhances efficiency
of the procurement
function
Asset trade-in 12.9 43% 12 40% 0 0% 5.1 17% 0 0%

30
encourages disposal
of assets which are
no longer needed in
the hospital and this
enhances
performance of the
procurement
function

On whether assets which are depreciable are usually disposed off through asset trade
– in and this enhances the efficiency of the procurement function 60% of the
respondents strongly agreed and 40% agreed, none of them were not sure, disagreed
or strongly disagreed.

Regarding whether asset trade-in reduces asset disposal losses and this enhances the
efficiency of the procurement function 77% of the respondents strongly agreed and
23% agreed, none of them were not sure, agreed or disagreed.

Concerning whether asset trade-in allows the hospital to always have equipments
which are efficient and this enhances efficiency of the procurement function 27% of
the respondents strongly agreed, 43% agreed and 30% disagreed, none of them were
not sure or strongly disagreed.

On whether asset trade-in encourages disposal of assets which are no longer needed in
the hospital and this enhances performance of the procurement function 43% of the
respondents strongly agreed, 40% agreed and 17% disagreed, none of them were not
sure or strongly disagreed.

4.6.3 Extent to which asset trade-in affects the efficiency of your procurement
function

The study sought to establish the extent to which asset trade-in affects the efficiency
of your procurement function and the findings are as shown in figure:

31
 45%
40%
40%

35%
30% 30%
30%
Percentage

25%

20%

15%

10%

5%

0%
Large extent Moderate extent Small extent
Extent

Figure 11: Extent to which asset trade-in affects the efficiency of your
procurement function

The findings revealed that 40% of the respondents said that asset trade-in affects
efficiency of procurement function to a large extent, 30% said it affects to a moderate
extent and 30% said it affects to a small extent, none of them said it affects to a very
large extent or to a very small extent.

32
4.7 Conclusion

The study made the following conclusions: Kabarnet referral hospital sales equipment
which is no longer needed through public tender. It was also concluded that in sale by
public tender the hospital management sets the terms, conditions and deadline, sale by
public tender draws attention to the asset being disposed adding a competitive edge,
through sale by public tender the hospital does not overprice or undersell the property;
instead the market and individual buyers are allowed to determine the value which
positively affects efficiency of the procurement function, the `no price' aspect in sale
by public tender attracts more genuinely interested buyers and if the property is not
sold by the tender date, it is usually exposed on the open market and this enhances the
efficiency of the procurement function.

The study also concluded that the hospital destroys all items deemed to have no value
in order to create space for storing other materials, all unserviceable stores and
equipment beyond economical repair are usually destroyed, unserviceable equipment
beyond economical repair and having no scrap value are certified on an Equipment
Write-Off form, some items which are beyond economical repair are usually
dismantled and used for spare partsand before items like electrical tools and
equipment, white goods are destroyed they are usually certified that they are beyond
economical repair and thisenhances the efficiency of the procurement function.

The study also concluded that: internal transfer of equipment is usually forwarded to
the finance department for recording, the hospital has an approved agreement for
transferring equipment, eequipment are transferred with approval of the hospital
management and rrequest for transfer of equipment to other institution is usually
made in writing and signed by head of procurement.

Finally the study concluded that assets which are depreciable are usually disposed off
through asset trade – in, asset trade-in reduces asset disposal losses, asset trade-in
allows the hospital to always have equipments which are efficient and asset trade-in
encourages disposal of assets which are no longer needed in the hospital and this
enhances performance of the procurement function.

33
4.8 Recommendations

The study made the following recommendations: The management of Kabarnet

referral hospital should advertise equipment/assets which they need to dispose as this
is normally a profitable way of disposing off assets and it enhances the efficiency of
the procurement function.

The study recommended that the management of Kabarnet referral hospital and other
public facilities should do their best to avoid disposal of assets/equipment through
destruction they should ensure the least amount of obsolete materials as this will
enhance the efficiency of their procurement function.

The study also recommended that the management of the hospital should encourage
asset transfer to other departments were possible as this ensures that the facility
equipment are well utilized. Finally the study recommended that the management of
Kabarnet referral hospital should trade in assets which are no longer of use to the
facility as this is a profitable way of disposing which enhances the efficiency of the
procurement function.

4.9 Recommendations for further study

The study recommends that a replication of the same study should be carried out in
another public hospital in order to determine whether similar findings will be
obtained. Further study should be carried out to determine the factors affecting
effectiveness of asset disposal in public hospitals.

34
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AGBOWO, C. H. (2018). AN APPRAISAL OF INVENTORY MANAGEMENT AND

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37
 APPENDIX I: RESEARCH QUESTIONNAIRE

RESEARCH QUESTIONNAIRE

I am a student of kitale national polytechnic undertaking a diploma course in Supply

chain management as part of the requirement for the award of this diploma; I am
carrying out a research on the “assessment asset disposal practices on efficiency of
procurement function at Kabarnet Referral hospital”. This questionnaire is purely
for academic purpose of collecting data in the area of study. The information gathered
will be used for the stated purpose only and will be treated with utmost
confidentiality. Your cooperation will be highly appreciated.
Instructions
Please tick [ ] where appropriate
SECTION A: DEMOGRAPHIC CHARACTERISTICS
• Gender of Respondent:
Male [ ] Female [ ]
• Kindly indicate your age bracket
20-25 yrs [ ] 26-30 yrs [ ]
31-35 yrs [ ] 40 yrs and above [ ]
• What is your highest level of education?
Primary [ ] KCSE [ ] Diploma [ ]
Degree [ ] Masters [ ]
• How long have you been working in Kabarnet Referral hospital?
1year and below [ ] 2-3 years [ ]
4-5 years [ ] 5 years and above [ ]

38
SECTION B: SALE BY PUBLIC TENDER
• Does your organization advertise equipment/assets which are no longer
needed for sale?
Yes [ ] No [ ]
• Indicate your level of agreement on the following statements concerning the
effects of sale by public tender on the efficiency of procurement function:

Statement Strongly Agree Not Disagree Strongly

agree sure disagree
In sale by public tender the hospital
management sets the terms, conditions and
deadline which positively affect efficiency
of the procurement function.
Sale by public tender draws attention to the
asset being disposed adding a competitive
edge that positively affects efficiency of the
procurement function
The hospital does not overprice or
undersell the property; instead the market
and individual buyers are allowed to
determine the value which positively
affects efficiency of the procurement
function
The `no price' aspect in sale by public
tender attracts more genuinely interested
buyers and this positively affects efficiency
of the procurement function
If the property is not sold by the tender
date, it is usually exposed on the open
market and this enhances the efficiency of
the procurement function.

39
• What is the extent to which sale by public tender affect efficiency of your
procurement function?
Very large extent [ ] Large extent [ ] Moderate extent [ ]
Small extent [ ] Very small extent [ ]

40
SECTION C: DESTRUCTION OF OBSOLETE MATERIALS/ASSETS

• Do you sometimes destroy equipment/assets which are no longer needed in

your organization?
Yes [ ] No [ ]
• If yes, how frequently?
Very often [ ] Often [ ] Not sure [ ]
Rarely [ ] Very rarely [ ]
• Indicate your level of agreement on the following statements concerning the
effects of destruction of obsolete materials/assets on the efficiency of
procurement function:

Statement Strongly Agree Not Disagree Strongly

agree sure disagree
The hospital destroys all items
deemed to have no value in order to
create space for storing other
materials and this positively affects
efficiency of the procurement
function.
All unserviceable stores and
equipment beyond economical repair
are usually destroys and this affects
efficiency of the procurement
function
Unserviceable equipment beyond
economical repair and having no
scrap value are certified on an
Equipment Write-Off form which
positively affects efficiency of the
procurement function
Some items which are beyond
economical repair are usually
dismantled and used for spare

41
partsand this positively affects
efficiency of the procurement
function
Before items like electrical tools and
equipment, white goods are
destroyed they are usually certified
that they are beyond economical
repair and thisenhances the
efficiency of the procurement
function.
• What is the extent to which destruction of obsolete materials/assets affects
efficiency of your procurement function?
Very large extent [ ] Large extent [ ] Moderate extent [ ]
Small extent [ ] Very small extent [ ]

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SECTION D: ASSET TRANSFER

• Do you transfer assets/materials from one department of the hospital to

another?
Yes [ ] No [ ]
• Indicate your level of agreement on the following statements concerning the
effects of asset transfer on the efficiency of procurement function:

Statement Strongly Agree Not Disagree Strongly

agree sure disagree
Internal transfer of equipment is
usually forwarded to the finance
department for recording and this
enhances efficiency of the
procurement function
The hospital has an approved
agreement for transferring
equipment and this affects the
efficiency of the procurement
function
Request for transfer of equipment to
other institution is usually made in
writing and signed by head of
procurement which enhances
efficiency of the procurement
function
Equipment’s are transferred with
approval of the hospital management
and this enhances efficiency of the
procurement function

15. What is the extent to which asset transfer affects the efficiency of your
procurement function?

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 Very large extent [ ] Large extent [ ] Moderate extent [ ]
Small extent [ ] Very small extent [ ]

SECTION E: TRADE-IN

• Does your organization trade-in assets with other organizations/individuals?

Yes [ ] No [ ]

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 • Indicate your level of agreement on the following statements concerning the
effects of asset trade in on the efficiency of procurement function:

Statement Strongly Agree Not Disagree Strongly

agree sure disagree
Assets which are depreciable are
usually disposed off through asset
trade – in and this enhances the
efficiency of the procurement
function
Asset trade-in reduces asset disposal
losses and this enhancesthe
efficiency of the procurement
function
Asset trade-in allows the hospital to
always have equipment’s which are
efficient and this enhances efficiency
of the procurement function
Asset trade-in encourages disposal
of assets which are no longer needed
in the hospital and this enhances
performance of the procurement
function
• What is the extent to which asset trade-in affects the efficiency of your
procurement function?
Very large extent [ ] Large extent [ ] Moderate extent [ ]
Small extent [ ] Very small extent [ ]

THANK YOU

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APPENDIX II: Letter from the institution

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