Abstract:

Purpose of the Study: The study examined the influence of selected circular supply chain management practices on the performance of chemical and allied manufacturing firms in Nairobi City County, Kenya. Specifically, the study focused on reverse logistics, sustainable sourcing, and material resource optimisation and how these practices affect firm performance in terms of operational efficiency, cost reduction, environmental compliance, and competitiveness. Problem Statement: Chemical and allied manufacturing firms in Nairobi City County operate in an environment characterized by high production costs, stringent environmental regulations, increasing waste management challenges, and growing stakeholder pressure for sustainability. Despite the strategic relevance of circular supply chain practices, many firms continue to rely on linear supply chain models, resulting in inefficiencies, resource wastage, and suboptimal performance. Empirical evidence on how specific circular supply chain practices influence firm performance in the sector remains limited, necessitating this study. Methodology: The study adopted a descriptive research design targeting 188 chemical and allied manufacturing firms registered in Nairobi City County. A census approach was employed, with data collected from senior managers responsible for supply chain, operations, and procurement functions using structured questionnaires. The instruments were tested for validity and reliability. Data were analyzed using descriptive statistics and inferential techniques, including correlation and multiple regression analysis. Findings: The findings revealed that reverse logistics, sustainable sourcing, and material resource optimisation each had a statistically significant and positive influence on firm performance. Conclusion: The study concludes that circular supply chain management practices are critical strategic drivers of performance in the chemical and allied manufacturing sector. Recommendations: The study recommends that firms strengthen reverse logistics systems, institutionalize sustainable sourcing policies, and invest in material resource optimisation technologies to enhance operational performance and long-term sustainability. Keywords: Circular supply chain management, Firm performance, Reverse logistics, Sustainable sourcing, Material resource optimisation.