Abstract:
In considering the volume of government expenditure in procurement, it was found necessary to
have a law to govern public procurement system in the public sector for the purpose of having an
effective public financial management. As a result there was the establishment of the public
procurement and disposal regulations (2006). These regulations were meant to ensure that the
public procurement process is fair, just and that there was sound financial management. The
study sought to find out how far the Public Procurement Regulations (2006) had achieved its key
role of ensuring effective public financial management. The research also sought to establish the
effects of the regulations in financial planning and financial control as well as its effects in public
financial debt. In the study the population of interest was procurement and finance staff in Kitui,
Machakos and Makueni Hospitals. The study sampled 45 employees in the procurement and
finance department who were given questionnaires. A sample of 20% of the suppliers and
contractors was randomly selected from the list of 280 suppliers and contractors to respond to the
questionnaires. The data collected was examined and checked for completeness and
comprehensibility and analysed using SPSS. The study found that public procurement
regulations had greatly improved financial planning as well as financial control in public
hospitals. The study however found that the public procurement regulations had not improved
financial debt management in public hospitals in South Eastern Kenya. The researcher therefore
concluded that public procurement regulations had positively improved financial planning as
well as financial control but had not improved financial debt management.
