The Role of Fraud Opportunities in Procurement Irregularities at Public National Referral Hospitals in Nairobi County, Kenya

Victor Ochieng Omata, Benson Gathoni and George Musumba
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Victor Ochieng Omata: Institute of Criminology, Forensics, and Security Studies, Dedan Kimathi University of Technology
Benson Gathoni: Department of Physical Education, Exercise & Sports Science, Kenyatta University
George Musumba: School of Computer Science and Information Technology, Dedan Kimathi University of Technology, Kenya

International Journal of Research and Innovation in Social Science, 2024, vol. 8, issue 12, 3708-3718

Abstract: Procurement fraud is a major challenge in Kenya’s health sector, where it continues undermining the delivery of effective services. Although various regulatory and legislative measures have been implemented to address this issue, procurement fraud persists, especially in Nairobi County. Guided by the fraud diamond and routine activities theories, this study examined the role of fraud opportunities—including opportunities for collusion, ineffective control mechanisms, accountability gaps, poor tone at the top, and inadequate monitoring—in facilitating procurement fraud within public National Referral Hospitals (NRHs) in Nairobi County, Kenya. A cross-sectional descriptive survey design was used for the study. Data were collected from randomly selected procurement and staff in three NRHs using structured questionnaires. Correlation and simple linear regression analyses were then performed using SPSS. The findings reveal that fraud opportunities significantly influence procurement fraud as they explain 57.9% (R² = .579) of its variance. Key vulnerabilities include opportunities for collusion, weak internal controls, poor accountability mechanisms, and leadership deficiencies that create an enabling environment for fraudulent activities. The study concludes that opportunities for fraud arising from weak internal controls and inadequate monitoring are major contributors to procurement irregularities in public NRHs. Based on the results, we argue that there is a need for the implementation of comprehensive procurement policies, institutionalization of periodic audits, enforcement of accountability measures, and adoption of technological tools to deter fraud. Future studies should explore the interplay between fraud opportunities and other drivers, such as rationalization and capability, in different public sector settings.

Date: 2024
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