Effect of Public Procurement Practices on Performance Contracts in Local Government: A Case of Kirehe District, Rwanda

Hakizimana Alphonse & Nimpano Desire
University of Kigali
https://orcid.org/0009-0009-8959-1807
Email: alphahakiza@gmail.com

Abstract: The general objective of this study was to analyze the effect of public procurement practices on performance contracts in local government in Rwanda. This research study focused on 74 staff members from Kirehe district. The researcher used SPSS (Statistical Package for the Social Sciences, version 25) for data analysis. The coefficient for needs identification was 0.210, indicating that every unit increase in needs identification leads to a 0.210 increase in performance contracts. This effect is statistically significant (β = 0.210, t = 2.958, sig. = 0.005). The result indicates the importance of accurately identifying needs in enhancing performance contracts. The coefficient for cost estimation is 0.184, meaning that a one-unit increase in cost estimation corresponds with a 0.184 increase in performance contracts. This influence is statistically significant (β = 0.184, t = 2.592, Sig. = 0.012). Supplier sourcing has a statistically significant influence on performance contracts, with a coefficient of 0.448 (β = 0.448, t = 5.398, Sig. = 0.000). Lastly, the terms of payment also show a significant effect on performance contracts, with a coefficient of 0.155 (β = 0.155, t = 2.013, Sig. = 0.047). These findings highlight the critical roles of needs identification, cost estimation, supplier sourcing, and terms of payment in improving performance contracts in Kirehe District. Kirehe District should conduct periodic reviews of performance contracts to ensure that the quantitative and qualitative targets remain relevant and achievable in the context of evolving community needs and market conditions.