INFLUENCE OF PROCUREMENT METHODS ON PROCUREMENT PERFORMANCE IN PUBLIC HOSPITALS IN KENYA. A CASE OF KENYATTA NATIONAL HOSPITAL

Abstract

This study sought to find the influence of procurement methods on procurement performance in public hospitals in Kenya, using a case of KNH. Specifically, the study sought to find the influence of internationals competitive tendering on procurement performance in public hospitals in Kenya; to establish the influence of national competitive tendering on procurement performance in public hospitals in Kenya; to determine the influence that restricted tendering has on procurement performance in public hospitals in Kenya; and to find out the influence of direct procurement on procurement performance in public hospitals in Kenya. The study used a descriptive survey research design with a target population of 6,000 employees and management at KNH. Further, this study adopted stratified sampling with a base sample size of 90 respondents. The study used structured questionnaires for collecting primary data from the respondents. SPSS together with Microsoft Excel were used for data analysis. The statistical parameters generated from the software were presented in tables and charts for easier interpretation. Multiple Linear Regression Analysis was used to estimate the relationship between the dependent and independent variables, and provided a means of objectivity in assessing the degree and nature of the relationship between the dependent and independent variables. The study established that only International Competitive Tender and National Competitive Tender variables had a positive and statistically significant influence on the dependent variable (Procurement Performance). Both Restricted Tender and Direct Procurement were statistically insignificant. Therefore the study concluded that a combination of all this methods does not necessary result in better procurement performance. Further, the study concluded that competitive tendering leads to better procurement performance. This study therefore recommended that policy makers at KNH give an edge to competitive tendering over other methods of procurement particularly Restricted Tendering and Direct Procurement.