E-procurement Strategies and the Performance of Kenya Owned Parastatals

Abstract

E-procurement strategies simplify the sourcing and purchasing process ultimately improving performance in organizations. Parastatals in Kenya are slowly adopting e-procurement as a tool to improve transparency, efficiency and effectiveness in service delivery through implementation of information systems. The main objective of this study was to determine the effect of E-Procurement strategies on the performance of parastatals in Kenya. The data collected was coded, analyzed, classified, and presented in tables, pie charts and bar charts. The data was analyzed by use of descriptive statistics. Regression analysis was used to establish the impact of e-procurement strategies adoption on performance. The findings of this research study show that the major practices of e-procurement strategies in Kenya-owned parastatals include; online advertisement of tenders, a functioning company website to manage procurement process, online specification of items to be procured and online requisition by company staff. The study concludes that E-procurement strategies are categorized into the extent of adoption, the level of implementation, challenges faced in the e-procurement adoption and impact on the supply chain performance and that the significant variables in measuring performance were reduced lead times, minimal paperwork, low tender costs, reduced redundancy and reduced bureaucracy as the major variables witnessed to have an impact on their supply chain performance.