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Purpose: The purpose of the study was to determine the effects of inventory management on the performance of state corporations in Kenya with an aim of making recommendations. Methodology: The study employed a descriptive research design. The researcher preferred this method because it allows an in-depth study of the subject. Data was collected using selfadministered questionnaires. The study employed stratified random sampling technique in coming up with a sample size. Pilot study was carried out to establish the validity and reliability of the research instruments. The instruments were designed appropriately according to the study objectives. The data collected was analyzed by use of descriptive and inferential statistics. The study used multiple regression and correlation analysis to show the relationship between the dependent variable and the independent variables. The data generated was keyed in and analyzed by use of Statistical Package of Social Sciences (SPSS) version 24 to generate information which was presented using charts, frequencies and percentages Results and conclusion: The regression equation above has established that taking all factors into account (inventory categorization, inventory control techniques, information technology integration and demand and supply forecasting) constant at zero, performance of state corporations in Kenya will be an index of 0.817.The findings presented also shows that taking all other independent variables at zero, a unit increase in inventory categorization will lead to a 0.537 increase in performance of state corporations in Kenya. The P-value was 0.000 which is less 0.05 and thus the relationship was significant. The study also found that a unit increase in inventory control techniques will lead to a 0.097 increase in performance of state corporations in Kenya. The P-value was 0.002 and thus the relationship was significant. In addition, the study found that a unit increase in information technology integration will lead to a 0.067 increase in the performance of state corporations in Kenya. The P-value was 0.000 and thus the relationship was significant. Lastly, the study found that a unit increase in demand and supply forecasting will lead to a 0.08 increase in the performance of state corporations in Kenya. The P-value was 0.001 and hence the relationship was significant since the p-value was lower than 0.05. The findings of the study show that, inventory categorization contributed most to the performance of state corporations in Kenya. International Journal of Supply Chain and Logistics ISSSN 2520-3983 (Online) Vol. 4, Issue No.2, pp 27 51, 2020 www.carijournals.org 28 The findings of the study indicated that; safety stock management, inventory control techniques, information technology integration and demand and supply forecasting have a positive relationship with performance of state corporations. Unique contribution to theory, policy and practice: Finally, the study recommended that public institutions should embrace inventory optimization practices so as to improve their performance and further researches should to be carried out in other public entities to find out if the same results can be obtained.

Effects of Inventory Management on The Performance of State Corporations in Kenya