Influence of Digital Payment Systems in Curbing of Procurement Fraud in State Corporations in Kenya

Abstract

The main objective of this study was to find out the influence of digital payment systems in curbing procurement fraud in state corporations in Kenya. Specifically, the study identified the influence of Mobile wallets, QR payments, 3D secure and Electronic Funds Transfer (EFT). The research design employed in this study was descriptive. This study relied heavily on secondary data as is the case with most desktop research study. The study reviewed journal articles, unpublished papers and conference papers on influence of digital payment systems in organizations. The paper employed a desktop approach to provide answers to the research objectives. Specifically, the paper used content analysis to gather information from peer reviewed publications such as, journal articles, environmental organizations reports and books. The study found that while digitization is important, other factors like institutional incentives and capacities and strong leadership are key for enhanced efficiency, improved service delivery and reduced opportunities for corruption. The Study found that the traction of digital technologies in reducing fraud and corruption entirely depend on the institutional context. Any system will only be as good as the practices that complement it and the human face behind it. Digitization of government systems was found a more effective method of blocking leakages or channels of leakages for revenue generation, salary payment, contract payment and an end-to-end transaction involving the governments. The study posits that, electronic payment can help reduce corruption in Africa and in most developing countries as it promotes transparency. The study recommended that a number of reform actions are needed for a better public procurement system including, (i) Strengthening Compliance for enforcement, (ii) the need for an end-to-end E-procurement system for all Procurement Processes, (iii) Need for technological Skills among procurement professionals in public sector and need for transparency and accountability in the entire procurement process in Kenya.