DIGITAL CONTRACT MANAGEMENT SYSTEMS AND PROCUREMENT PERFORMANCE IN NAIROBI COUNTY GOVERNMENT IN KENYA

Abstract

The efficiency and transparency of public procurement processes are critical to ensuring value for money, compliance with regulatory frameworks, and improved service delivery. In recent years, the adoption of digital contract management systems has emerged as a transformative approach to enhance contract administration, performance tracking, and supplier relations. This study examined the influence of digital contract management systems on procurement performance in Nairobi City County Government, focusing on contract structure, and contract monitoring. The research was anchored on Control Theory, and Principal–Agent Theory providing a multi-theoretical perspective for understanding the relationships between digital contract management practices and procurement outcomes. The study adopted a descriptive research design targeting 137 staff members involved in procurement and contract management across various county departments. A stratified random sampling technique was used to select a sample of 102 respondents, ensuring proportional representation of all departments. Data were collected through self-administered structured questionnaires using a drop-and-pick method, complemented by email distribution for inaccessible respondents. Prior to the main survey, a pilot test was conducted in Kiambu County to assess the instrument’s validity and reliability, achieving Cronbach’s alpha coefficients above the acceptable threshold of 0.7 for all variables. Quantitative data were analyzed using the Statistical Package for the Social Sciences (SPSS, Version 28). Descriptive statistics summarized respondents’ demographic characteristics and variable responses, while inferential statistics, specifically multiple linear regression analysis, tested the effect of each independent variable on procurement performance. Pearson correlation results revealed strong and significant relationships between procurement performance and contract structure (r = 0.642, p < 0.05), contract monitoring (r = 0.701, p < 0.05). The findings underscore the importance of adopting clear and comprehensive contract structures, strengthening monitoring mechanisms in enhancing procurement performance. The study recommends further investment in digital procurement platforms, capacity building for procurement personnel, and continuous review of contract management policies to align with evolving best practices. These insights are expected to benefit policymakers, procurement practitioners, and researchers seeking to enhance efficiency, accountability, and transparency in public sector procurement.

Key Words: Digital Contract Management Systems, Contract Structure, Contract Monitoring, Procurement Performance, Nairobi City County