Electronic Procurement Practices on Performance of Public Hospitals in Kakamega County, Kenya

The performance of public hospitals in Kenya has been marred with a lot of issues ranging from poor services to the patients, delayed supplier payments and constant labour unrest. Complaints have arisen from the manner in which procurement of goods and services are handled leading to inefficiencies in various departments including in the clinical medicine. Patients have been equally suffering in grief due to poor service delivery. Public hospitals have inadequate facilities and are characterized by dilapidated facilities, insufficient drugs, and inadequate human capital as well as obsolete infrastructural facilities. The specific objectives of the study were: to determine the effect of E-Tendering on performance in public hospitals in Kakamega County; to assess the effect of E-Contracting on performance in public hospitals in Kakamega County; to examine the effect of E-Ordering on performance in public hospitals in Kakamega County; and to evaluate the effect of E-Payment on performance in public hospitals in Kakamega County. The study was founded on diffusion of innovation theory and RBV theory. The study applied descriptive survey research design. The study utilized a sample size of 204 which was derived at after the calculation from a population of 416 using Yamane 1967 formula. Questionnaire was used to collect data. Validity was determined through discussion with the supervisor and department staff and reliability was also determined by pilot study with a focus on internal consistency. This was measured using the Cronbach alpha coefficient. The measures of central tendency and correlational analysis were also used in data analysis. The study is of utmost significance to the policymakers in the health sector, researchers and academicians and the public hospitals in Kakamega and Kenya at large. The findings were presented in tables and figures. The study revealed that although e-tendering has improved openness, security, and accessibility of procurement documents, it has not completely realized its potential in enhancing efficiency, value for money, and supplier engagement. The study also revealed that manual processes continue to prevail in contract administration, and the platforms are deficient in sophisticated functionalities to facilitate effective negotiation, monitoring, and collaboration. Besides, the study revealed that although the system does not markedly streamline the purchase process, as demonstrated by the restricted capabilities of e- shopping carts and error checking tools, it offers certain advantages in inventory management and procurement oversight. Finally, the study revealed that although the use of e-payment enhanced operational efficiency, security, and compliance, it did not markedly expedite the processing of vendor or supplier payments.