International Journal of Economics, Finance and Management Sciences 2015; 3(3): 303-310 Published online May 29, 2015 (http://www.sciencepublishinggroup.com/j/ijefm) doi: 10.11648/j.ijefm.20150303.27 ISSN: 2326-9553 (Print); ISSN: 2326-9561 (Online) Factors Affecting Effectiveness of E-Procurement in Business Organizations, a Survey of Safaricom Dealers in Nakuru CBD-Kenya Eunice Waruguru, Sophia Nduta Kiruri Department of Accounting, Finance and Management Science, Egerton University, Nakuru, Kenya Email address: yunnywa@yahoo.com (E. Waruguru), sophiekiruri@yahoo.com (S. N. Kiruri) To cite this article: Eunice Waruguru, Sophia Nduta Kiruri. Factors Affecting Effectiveness of E-Procurement in Business Organizations, a Survey of Safaricom Dealers in Nakuru CBD-Kenya. International Journal of Economics, Finance and Management Sciences. Vol. 3, No. 3, 2015, pp. 303-310. doi: 10.11648/j.ijefm.20150303.27 Abstract: The study focused on establishing factors affecting effectiveness of e-procurement in business organizations. It was carried out among Safaricom dealers in Nakuru Central Business District (CBD). The specific objectives that guided the study were: to find out how e-security affects effectiveness of e-procurement among Safaricom dealers in Nakuru CBD; to determine the extent to which quality of software systems affect the effectiveness of e-procurement among Safaricom dealers in Nakuru CBD; to find out how staff training affects the effectiveness of e-procurement among Safaricom dealers in Nakuru CBD; and to determine how subcontracting affects the effectiveness of e-procurement among Safaricom dealers in Nakuru CBD. The findings of the study will be of great importance to Safaricom dealers as well as other business organizations for they will get to know the factors affecting the effectiveness of e-procurement in their organizations and thereby come up with measures to enhance the effectiveness of e-procurement process as a whole. A survey research design was adopted for the study where 31 procurement personnel working in Safaricom dealer shops in Nakuru CBD formed the target population for the study. A census technique was used where all 31 respondents were included for the study. A questionnaire was used as the data collection instrument and contained closed ended questions. Data analysis was done using descriptive statistics such as frequencies and percentages, while presentation of the results was in the form of tables, charts and graphs which facilitated clear interpretation of results and drawing of conclusion. The findings revealed that e-security affected the effectiveness of e-procurement among Safaricom dealers in Nakuru CBD to a large extent. The quality of software that was being used by Safaricom dealers was found to affect the effectiveness of e-procurement to a large extent. Training sessions were offered to employees of Safaricom dealers often and the level at which training was found to affect the effectiveness of e-procurement was to a large extent. Also established was that subcontracting affected the effectiveness of e-procurement to a very large extent. Based on these findings, the researcher recommended that regular software updates should be done and firewalls installed as e-security measures to forbid outside threats such as hackers and viruses from gaining access to the system and thereby safeguarding data being transacted. The researcher suggested that further research should be conducted to determine the challenges faced in the implementation of information technology in the procurement process. Keywords: E-Procurement, Business Organizations, Nakuru CBD 1. Introduction 1.1. Background of the Study E-procurement is the business to business or business to consumer or business to government purchase and sale of supplies, work and services through the internet as well as other information and networking systems such as electronic data interchange (EDI). The study purposed to find out the factors affecting effectiveness of using computers or electronic data interchange in business organizations as far as the procurement procedures are concerned (Lysons and Farrington, 2006). The use of inter-organizational systems such as electronic data interchange and internet-based extranets enable new types of collaborative alliances between separate trading partners (Philips, 2003). Most organizations in Kenya today are adopting e-procurement as a way of operating their