The main objective of this paper as its heading suggests was to assess the effect of compliance with procurement rules and regulations on performance of the procurement functions in public entities in Tanzania. The study adopted descriptive research design in the formulation of knowledge on the effect of compliance with procurement rules and regulations on performance of procurement function in the public entities in Tanzania. Stratified sampling was used to identify a sample size of 100 public entities from a sampled population of 298. In each of the selected entity, three respondents were purposefully selected thus making a total of 300 respondents. Semi structured questionnaires and face to face interviews were the key data collection instruments. Both qualitative and quantitative data were collected and analyzed using the Statistical Package for Social Sciences (SPSS 20.1 program). Findings indicate that compliance with rules and regulations has a significant impact on procurement performance in public entities in Tanzania. Based on the regression analysis results, the coefficient for compliance with rules and regulations is 0.471 and the t-test value is 2.634 and this coefficient is significant (p – value =0.009 < 0.05). This implies that, performance of the procurement department increases by 47% when there is an optimal compliance with rules and regulations, while holding other variables unvaried/constant. The study recommends that public entities in Tanzania should strive to comply fully with the procurement rules and regulations so as to enhance performance levels of their respective procurement departments.
Keywords: Compliance: Legal and Regulatory Framework, Procurement Function, and Procurement Performance.
