Procurement Management And Financial Performance Of Commercial Banks In Uganda: Case Study Of Fina Bank Uganda Limited

ABSTRACT

This study looked at the effect of procurement management on the financial performance

ofbanks in Uganda with a case study ofFINA Bank Uganda Ltd. Specifically the study

reviewed procurement planning, controls and monitoring and how they affected the

performance of banks. It was hypothesized in the study that procurement planning,

controls and monitoring positively affect the performance of banks. Empirical data was

collected from the staff ofFINA Bank Uganda and the study had 33 respondents from the

targeted population of 35; this sample was selected using purposive sampling. The

empirical data was analyzed both quantitatively and qualitatively to examine the

relationships between procurement management and bank performance. The key findings

of the study indicated that the three procurement management attributes i.e. procurement

planning, controls and monitoring positively affected the performance of the bank. This

was because there were significant relationships that were established from the study

between these variables and the financial performance of the bank. From the study, it was

recommended that the existing procurement planning processes be revised and

strengthened to further improve bank performance; the controls be thoroughly reviewed

and adherence enforced; while monitoring be carried out regularly and by independent

personnel. Further research was recommended to cover other procurement management attributes and a wider population of banks in Uganda.