E-PROCUREMENT PRACTICES AND PROCUREMENT PERFORMANCE IN KENYA’S STATE ENTERPRISES

Abstract

The study objective was to establish the influence of e-procurement practices on procurement performance in Kenya’s State enterprises. Specifically, to assess how e-sourcing influences Procurement Performance in State Enterprises in Kenya and to establish how e-payments influences Procurement Performance in State Enterprises in Kenya. A descriptive research design was used for the investigation. The research focused on 419 members of staff from the top management, departments of ICT, finance & accounts, procurement and warehousing, from the chosen case studies of Kenya Airports Authority, Kenya Airways, Kenya Pipeline, East African Portland Cement and the Kenya Ports Authority. The sample was chosen using stratified random sampling because the population is diverse. The study sample was 55 respondents. A standardized questionnaire was used to gather the study's main data. The quantitative analysis method was used to analyze the data. The acquired data was then used additional coding, SPSS entry and analysis using descriptive statistics and inferential techniques. Inferential analysis was conducted out utilizing correlation analysis and linear regression analysis technique, whilst descriptive analysis involved the use of percentages and frequencies. With the help of regression analysis, the relationship between e-procurement practices and the effectiveness and performance of procurement in Kenya's state enterprises was determined. The study found that e-sourcing had a positive and significant relationship with procurement performance and that e-payments had a significant and positive relationship with procurement performance in state enterprises in Kenya. The study recommends that the enterprises should adopt the most advanced e-sourcing tools in the market like the request for information (RFI), request for quotation (RFQ) and request for proposal (RFP). This would enable the selection of the best suppliers in the market and hence achieve good procurement performance. The study recommends that e-payments should be fully implemented in the state enterprises. This would ensure that payments go to designated point and hence reduce fraud.