Effect of Public Procurement Procedure on the Use of Donor Funded Projects: A Case of Study of Moi Teaching and Referral Hospital

The study aimed at establishing the effect of procurement procedure on the use of donor funded projects at Moi teaching and referral hospital. This is because every organization that purchases goods or services has standard procurement procedures, the methods they use to acquire those things. These procedures cover all aspects of the procurement cycle, including the selection of the supplier, contract negotiations, order placement and payment. In order to achieve this purpose, objectives were formulated which included to determine the effect of procurement skills on donor funded projects at the organization; to examine the effect of corruption on procurement on the donor funded projects and to find out the effect of procurement planning on the donor funded projects. The study was guided by the Principal-Agent Theory and the General Systems Theory. The researcher employed a descriptive research design. This study was carried out at the Moi Teaching and Referral Hospital. The sample population consisted of Divisional chairpersons, heads of department, administrators and staff working in the various hospital departments who understand procurement procedures. Structured questionnaires and document analysis were the main data collection tools. Validity and reliability of these instruments was established through conducting a pilot study and getting expert opinions. The collected data was then coded and analyzed using the SPSS version 17 computer program. The study therefore concluded that it is therefore important that staff assigned to the procurement function have the professional skills and experiences to carry out the functions efficiently. The systematic application of management policies, procedures, and practices to manage risk in the procurement area is important in order to provide reasonable account regarding procurement objectives. Failure to apply risk management in the procurement area may result in non competitive prices, reduced standards of received goods and services and dissatisfied stakeholders. The study recommends that in respect to strategic procurements and procedures in general, more consultation should be made with the wider community and with other Stakeholders in the procurement system, especially members of the public who was directly affected by the outcomes of the project, also, Better trained and managed professional procurement teams are required in order to operate the principles behind the new procurement methods and procedures given the increasing complexity of procurement, and the need to exercise decisiveness in complex circumstances.