FACTORS INFLUENCING PROCUREMENT PROCESS EFFICIENCY IN PUBLIC HOSPITALS IN KENYA: A CASE OF KENYATTA NATIONAL HOSPITAL

The study purpose was to establish the factors influencing procurement process efficiency in public hospitals in Kenya, with a specific reference to Kenyatta National Hospital. Establishing an effective supply chain is crucial in achieving equitable and affordable healthcare. Experts from the government and private sector had observed that to achieve the objectives of universal health coverage, public hospitals must observe good pharmaceutical practice and efficient supply chains. Supply chain management is crucial in determining cost, quality and accessibility of medicines. It determines drug delivery time and drug wastage levels. Reliable supply chain systems ensure that people are accorded the right to affordable, quality medicines available at the right time, place, in the right form in a right way and in sustainable manner. Kenyatta National Hospital is a state corporation that suffers from the problems associated with procurement of goods and services. From the foregoing, there was need to conduct a study in this area guided by the following specific objectives; to establish the effect of finance or budgetary allocation on procurement process efficiency, to determine the effect of ICT on procurement process efficiency, to establish the effect of quality management on procurement process efficiency and to assess the effects of professionalism and staff competence on procurement process efficiency. This study was guided by three theories which are Theory of Constraints, General Systems Theory and Deming’s Theory of Total Quality Management. The study used primary data which was collected through the use of questionnaires. Due to small sample the researcher conducted a census survey on the 77 employees of the Kenyatta National Hospital procurement department. Data analysis was performed on a PC computer using Statistical Package for Social Science (SPSS Version 22) for Windows and the information generated was presented in form of tables.From the study findings, the researcher established a strong relationship between the four independent variables of Finance or budgetary allocation, information communication technologies, quality management and staff competence and the dependent variable which was procurement process efficiency. The researcher therefore recommends that Kenyatta national hospital implement the following measures: that the hospital provides training opportunities for procurement staff in order to keep pace with the changing business environment, increase its budgetary allocation and avail funds for emergency procurement to user departments in order to cater effectively for the needs of the departments, the Hospital needs to increase the use of ICT in order to enhance unlimited and non-restricted access to information and enhance transparency in procurement activities, management should provide employees with the required resources, provide growth opportunities through regular training and the freedom to make decisions with responsibility and hold them accountable for the decisions made. The study is expected to benefit academicians by expanding more research work in the areas of public procurement with a view of making procurement activities in public institutions more efficient and cost effective as well as more dynamic and responsive to the organizational needs