African Journal of Business and Industry Volume 2, Issue 1, April 2016, PP 17 - 33 ISSN 2413-3213 (Print) & ISSN 2413-3213 (Online) African Journal of Business and Industry, Vol. 2, No. 1, April 2016 Page 17 Material Flow, Supply Chain Performance and Lead Time of Road Construction Projects in Kenya Abuya Joshua Olang’o 1 , Onditi Arvinlucy 2 , Magutu Peterson 3 1 Kim University Kigali-Rwanda, 2 Jaramogi Oginga Odinga University of Science and Technology-Kenya, 3 University of Nairobi-Kenya ABSTRACT Construction supply chains encompass the Flows of Materials, Cash, Labor, Information, Plant, Equipment and Temporary Works that originate from a variety of different parties. In Kenya, several road construction projects have had time overruns in their completion, (KeNHA 2014). This research was thus centered on establishing the influence of material flow management on the supply chain performance and subsequently the lead time of road construction projects in Kenya. The study was guided by the following specific objectives: First, to establish the influence of material flow and road construction projects’ lead time in Kenya. Secondly, to establish the relationship between material flows, supply chain performance and lead time of road construction projects in Kenya. This study was anchored on Simulation Theory and Goldrat's Theory of Constraints (TOC). Preliminary investigations was carried out by visiting two road construction projects over a period of two weeks to gain an understanding of the ways in which material flow management impacted on supply chain performance & subsequently on lead time of road construction project. This was followed by the main cross sectional survey designed to collect the required data. Stratified purposive sampling was used to select the sample size. The study comprised of a target population of 116 and a sample size of 90 respondents determined by Yaro Yamane Formula (1967). Data was collected using structured questionnaires and interview guides whose reliability and validity were tested at the index of 0.70. The Cronbach’s Alpha coefficient was used to measure the reliability on a 5-point Likert Scale for multiple items. Validation of the questionnaire was done by construction and supply chain specialist while content validation was done by pilot survey. Data analysis was done by multiple regression analysis and content analysis. The hypotheses were tested using Pearson chi-square test of independence at a significance level of 0.05. The findings show that supply chain performance had a significant moderating effect on the relationship between material flow management and lead time of road construction projects (R 2 =0.143, F (1, 87) 2.739, p=0.024, α=0.05). The study concluded that supply chain performance has a moderating effect on the relationship between material flow management and lead time of road construction projects with a predictor model (P t = 1.488- 0.133 X 1 + 0.123Z 5 + 0.382Z 6 - 0.053Z 7 + 0.345Z 8 + 1.518). Contractors should acquire an inventory management sofware to manage material demand and supply. The findings provide a practical and useful tool for construction project managers to audit construction material flow management with an effort to deliver timely projects. KeNHA would also be able to estimate road construction project lead times besides the provision of a material flow-lead time model for scholars. Keywords: Material Flow Management, Supply Chain Performance, Project Lead Time