Effects of E-procurement Adoption on Preference Regulation in Kenyan State Corporations: A Case of Kenya Power and Lighting Company Limited

Abstract

E-procurement adoption and its use in state corporations in Kenya has been on the rise over the past few years. Its adoption has led to efficiency, transparency, reduction in costs among public institutions in Kenya. Government has employed procurement preference as both a strategic tool for economic development as well as an equity tool to ensure that the resources are being equally distributed. Procurement preference helps to develop and support local industries which in turn will lead to job creation and sustainability in public procurement. To ensure the success of this preference, there is need therefore to ensure compliance and also to regulate the processes within which the preference is being done so as to be able to seal loopholes that can be exploited by scrupulous employees and external parties to divert contracts from the intended persons. This study therefore sought to examine how e-procurement adoption will benefit regulation of procurement preference. The study was a case study research design. The target population of the research encompassed staff from procurement department, supply chain department, ICT department finance department and stores department at Kenya Power head office in Nairobi. The study adopted stratified random sampling as a sampling technique in selecting the sample. Data collection instrument were structured questionnaire to collect primary data. The study also made use of secondary sources of data. Data was analyzed using SPSS version 21. Multiple linear regression results have shown that four predictors can explain 76.3% of change in preference regulation namely: information access, government policy, customer satisfaction and cost reduction. Following the outcome this research, it is worthwhile concluding that there is a positive relationship between e-procurement adoption and preference regulation. Through information access, government policy, customer satisfaction and cost reduction, Kenya power has been able to achieve procurement preference regulation. It is therefore crystal clear that e-procurement adoption in state corporations and other public sector institutions can be used to achieve far more benefits than the one previously forecasted to achieve.