E-PROCUREMENT PRACTICES AND SUPPLY CHAIN PERFORMANCE AT KENYA MEDICAL SUPPLIES AUTHORITY

Abstract

The main focus of the study was to examine the effect of electronic procurement practices on supply chain performance at Kenya Medical Supplies Authority. Specifically, the study sought to establish the effect of electronic purchase on supply chain performance at Kenya Medical Supplies Authority and to assess the effect of electronic payment on supply chain performance at Kenya Medical Supplies Authority. This study was guided by: Technology Acceptance Model and Diffusion of Innovations Theory. This study used descriptive research design to collect both qualitative and quantitative data. The target population consisted of 175 management-level employees at the Kenya Medical Supplies Authority (KEMSA). The unit of observation was specifically 175 management employees across various departments who are directly involved in or oversee procurement and supply chain activities. Due to the small size of target population, census sampling technique was adopted. Therefore, the sample size for the study was 175 respondents. This study used primary data collected using a structured questionnaire. Quantitative data collected was analyzed using descriptive statistics techniques such as frequencies, percentages, means and standard deviations. To test the relationship between study variable, inferential statistics were used. It included pearson R correlation and multiple regression models. Presentation of the results were done in tables and figures. Regression analysis showed that  among the predictors, electronic purchasing had the strongest effect (β = 0.262), followed by electronic payment (β = 0.217). These results indicate that improvements in each e-procurement component directly enhance supply chain efficiency, reduce cycle times, and improve supplier engagement. The study concludes that electronic procurement significantly contributes to improving KEMSA’s supply chain performance by streamlining procurement processes, enhancing transparency, and increasing operational efficiency. Electronic purchasing emerged as the most influential factor, highlighting its role in ensuring accuracy, timely procurement, and better resource utilization. The study recommends that KEMSA prioritize further investment in electronic purchasing systems and integrate real-time inventory management to enhance accuracy and responsiveness. Strengthening electronic payment platforms is also recommended to improve financial accountability and maintain strong supplier relationships.

Key Words: Electronic Procurement Practices, Electronic Purchase, Supply Chain Performance, Electronic Payment, Kenya Medical Supplies Authority