International Journal of Business and Management; Vol. 14, No. 1; 2019 ISSN 1833-3850 E-ISSN 1833-8119 Published by Canadian Center of Science and Education 1 Components of Procurement Reforms That Influence Expenditure Management in Secondary Schools in Kenya: A Focus on Tender Advertising Eric Kibinu Kinuthia 1 , Paul A. Odundo 2 & Grace Nyagah 3 1 Doctorate Candidate, Department of Education Administration, University of Nairobi, Kenya 2 Associate Professor, Department of Education Communication & Technology, University of Nairobi, Kenya 3 Senior Lecturer, Department of Education Administration, University of Nairobi, Kenya Correspondence: Paul A. Odundo, Associate Professor, Department of Education Communication & Technology, University of Nairobi, Jordan. E-mail: odundopaul@yahoo.com Received: October 1, 2018 Accepted: November 20, 2018 Online Published: November 30, 2018 doi:10.5539/ijbm.v14n1p1 URL: https://doi.org/10.5539/ijbm.v14n1p1 Abstract In Kenya, the public procurement sector has developed over the past 5 decades, from a system with no regulations to a system regulated by circulars; and currently, to a system firmly grounded on sound laws and policies. The aim of this study was to establish the extent to which public secondary schools in Nairobi City County had complied with relevant legislative and policy provisions guiding procurement reforms, as well as the effect of selected of reforms on expenditure management. This article focuses on the frequency of tender advertising. The evaluation research model III was applied to guide the research process and primary data were sourced in 2015 from 35 public secondary schools. Quantitative analysis included cross-tabulation with analysis of variance, chi-square statistic, correlation coefficient, as well as multiple regression. The study found that two-thirds of the schools were consistently advertising tenders as required by the legislative and policy provisions. Besides, the frequency of tender advertising significantly correlated with variation in procurement expenditure; and further caused a significant reduction in the same (beta weight = -0.335, t-statistic = -2.639 & ρ-value = 0.014), which signifies a positive influence on expenditure management. Ensuring consistency in advertising tenders is likely to help many schools improve on expenditure management; thereby, enhance the contribution of public procurement to national development. Keywords: public procurement, reforms, expenditure management, tender advertising, secondary school 1. Introduction Public procurement is the process of acquiring goods, services, and works by public sector institutions using public resources. It also entails the disposal of public assets. Public procurement plays an important role in national socio-economic development by supporting public institutions to deliver quality social services to citizens as well as stimulating growth in the commercial and manufacturing sectors (Lindskog, Brege & Brehmer, 2006). Through public procurement, up to 60% of government revenue is injected into the economy, which in turn, stimulates private sector growth, creates employment opportunities and improves income (Organisation for Economic Cooperation and Development [OECD], 2001). In developing countries, the value of public procurement expenditure ranges between 9% and 13% of national Gross Domestic Products (GDP), while in developed nations, the value of procurement expenditure varies between 5% and 8% of the national GDP. In Kenya, the value of public procurement accounts for about 10% of the GDP, making it a large market for private sector, albeit with high opportunities for corruption (Kavula, Kalai & Migosi, 2014; Kenya Anti-Corruption Commission [KACC] & Public Procurement Oversight Authority [PPOA], 2009). Sound procurement practices are essential for public procurement to make meaningful contribution to national development (KIPPRA, 2006; Odhiambo & Kamau, 2003; World Bank, 2002). Whereas sound practices reduce expenditure and enhance efficiency, unsound practices often culminate to wastage of public resources, which in turn, deprives citizens of quality social services and thwarts growth in the commercial and manufacturing sectors. The basic principles of sound procurement practice include accountability, where effective mechanisms are established to enable governments spend resources carefully, knowing clearly that they are accountable to