Effect Of E-procurement On Performance Of The Public Sector In Kenya: A Case Study Of The Ministry Of Devolution And Planning In Kenya

Abstract

In a competitive and globalized operating environment, organizations need to keep abreast with new technological developments and leverage on them to meet their goals and objectives. Since the emergence of e-procurement in mid-1990s, organizations have tried to utilize it with a view of capitalizing on its benefits including cost reductions, process streamlining, improved contract compliance, increased efficiency among others. However many challenges still stand in the way significantly reducing the ability of the organizations to take full advantage of the value of e-procurement. The Kenya government through the National Treasury launched the use of e-procurement in government ministries with the aim of achieving greater transparency and accountability in the use of public funds. However the actual effect of e-procurement implementation on performance of the government entities remains largely untested empirically. This study sought to examine the effect of e procurement on performance of the Public Sector in Kenya using a case of the Ministry of Devolution and Planning in Kenya. Specifically, the study sought to establish the effect of e tendering, e-sourcing, e-invoicing and e-payment on performance of the Ministry of Devolution and Planning in Kenya. The study adopted a descriptive research design. The target population of the study was 118 staff working in the Procurement Department of the Ministry of Devolution and Planning in its headquarters in Nairobi. The study was a census survey. The study used primary data which was collected using a self administered questionnaire. In data analysis, the study data was analyzed through descriptive statistics using the Statistical Package for Social Science (SPSS version 23.0) and presented through percentages, frequencies, mean and standard deviation. Further, linear regression analysis was used to analyze the relationship between the study variables. The study results revealed that the study respondents agreed that e-tendering helped reduce the procuring period; e tendering provided an effective audit trail of the procurement process; e-sourcing eliminated biasness and prejudice in supplier selection; e-sourcing had enhanced the level of competitive bidding; e-invoicing can lead to improved supplier/customer relationships; e-invoicing can lead to improved visibility of procurement dealings; e-payments were harder to manipulate leading to lesser financial improprieties and that e-payments enhanced the level of accountability in procurement payments. The study concluded that e-tendering, e-sourcing, e invoicing and e-payment as e-procurement practices played a significant role in enhancing the organizational performance of the Ministry of Devolution and Planning in Kenya. The study recommended that the Ministry of Devolution and Planning in Kenya, and other Government Ministries and Departments by extension, should adopt a holistic approach in reforming their procurement processes that will not only be limited to automation of the of the various procurement aspects but also building the capacity of their staff and suppliers on how to work with the various e-procurement platforms.