This study examined the effect of e-procurement functions on procurement costs in the public
sector, with a specific focus on the Ministry of Health in Kenya. E-procurement has
increasingly been adopted to enhance transparency, accountability, and efficiency in public
procurement systems. The research was guided by three specific objectives: to investigate the
influence of E-tendering on procurement costs, to determine the influence of E-sourcing on
procurement costs, and to examine the influence of E-invoicing on procurement costs within
the Ministry. The study employed a desktop-based descriptive research design, utilizing
secondary data drawn from government procurement reports, audit documents, regulatory
publications, and scholarly literature covering the period from 2020 to 2024. The theoretical
framework for the study was informed by the Technology Acceptance Model (TAM),
Transaction Cost Economics (TCE), and Public Value Theory, which together provided a

foundation for understanding technology adoption, cost efficiency, and public value in E-
procurement implementation. The findings revealed that E-tendering led to a 15% reduction in

procurement-related costs, E-sourcing reduced sourcing and supplier evaluation costs by 12%,
and E-invoicing lowered invoice processing costs by 10%. Overall, the Ministry of Health
experienced a 12.9% decrease in total procurement expenditures following the implementation
of E-procurement systems. These outcomes suggested that the adoption of E-procurement
significantly enhanced cost efficiency and contributed to improved procurement performance
in the Kenyan public sector. The study concluded that E-procurement plays a critical role in
achieving value for money and recommended further investment in digital procurement
infrastructure. It also highlighted the need for future research involving primary data and
stakeholder perspectives to provide more nuanced insights into the challenges and enablers of
E-procurement adoption.