Enhancing Water Project Success through Strategic Tendering and Governance in SEKEB Counties

This study investigates the mediating role of corporate governance practices in the relationship between tendering processes and the performance of county-managed water projects in Kenya’s South Eastern Kenya Economic Bloc (SEKEB), encompassing Machakos, Makueni, and Kitui counties. Despite substantial public investments in water infrastructure, persistent underperformance has raised concerns that extend beyond financial or technical deficits, calling attention to institutional and procedural inefficiencies. Grounded in Tendering Theory and Agency Theory, the study employed a pragmatist philosophy and a mixed-methods research design, integrating quantitative survey data from 213 stakeholders with qualitative insights to analyze how procurement systems interact with governance frameworks to influence project outcomes. Empirical analysis using Pearson correlation and Baron and Kenny’s four-step regression method revealed that the tendering process has a strong and statistically significant direct effect on water project performance (β = 0.876, p < 0.001), explaining 67.9% of performance variance (R² = 0.679). Corporate governance practices—including board oversight, transparency protocols, and accountability mechanisms—also exhibited a significant predictive relationship with project outcomes (β = 1.076, p < 0.001), accounting for 41.4% of the variance (R² = 0.414). When both variables were included in the regression model, the effect of the tendering process remained significant but declined (β = 0.817, p < 0.001), while corporate governance lost statistical significance (p = 0.196), indicating a partial mediation effect. These findings suggest that while efficient tendering procedures directly influence water project outcomes, their effectiveness is enhanced by robust governance structures. Corporate governance acts as a filtering mechanism that translates procedural compliance into tangible infrastructure performance. The study concludes that sustainable improvements in public project delivery within SEKEB require an integrated approach that combines transparent procurement systems with institutionalized governance practices. The results offer actionable insights for strengthening public procurement and infrastructure oversight frameworks under Kenya’s devolved governance model. Keywords: Tendering process, corporate governance, mediation effect, project performance, public procurement, county governments, SEKEB, water infrastructure, regression analysis, procurement reforms.