Effects of public procurement regulations on public financial management; a case of public hospitals in South Eastern Kenya

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.