The Kenya government has n recent times aggressively advocated for the utilization of public
procurement‘s buying power to stimulate and diffuse innovation, but the additional requirement placed on
public procurement has made procurement practitioners cautious about the move given that public
procurement is a regulated process whose ultimate agenda is to ensure value for money is achieved.
Surprisingly, extant literature on Supply chain Performance in Kenya owned State Corporations has paid
much attention to the direct relationship between functional aspects and supply chain performance, to the
exclusion of the moderating effect of regulatory compliance on these relationships. This paper sought to
examine the effect of regulatory compliance on the relationship between public procurement of innovation
and supply chain performance in Kenya owned State Corporations. The study employed a cross-sectional
census survey design targeting 187 Kenya owned State Corporations. Primary data was collected using
close and open ended questionnaires while secondary data was retrieved from Public Procurement
Regulatory Authority website. The results revealed that regulatory compliance had a positive and
statistically significant effect on supply chain performance. The study recommends for regulatory
compliance as interventionist measure in the utilisation of public procurement of innovation to stimulate
diffusion of innovation