The Assessment of Functionality of National Electronic Procurement System of Tanzania (NeST) in Procurement Process on Local Governments. A case of Kinondoni Municipal Council

Abstract

This study assessed the functionality of the National Electronic Procurement System of Tanzania (NeST) in the procurement process at Kinondoni Municipal Council. The study employed a mixed-methods approach, utilizing questionnaires collected from 100 respondents and interviewing 15 key informants, including procurement officers, contract managers, compliance officers, and other system users. The quantitative data were analyzed by using descriptive statistics through the Statistical Package for the Social Sciences SPSS and thematic analysis for qualitative data. Reliability of the research instruments was established through pre-testing and the computation of Cronbach’s alpha coefficients, all of which yielded values exceeding the recommended threshold of 0.7, indicating acceptable internal consistency. The findings indicated that NeST is largely functional, as most users rated its processing speed as moderate to fast and reported low error rates; however, challenges such as system downtime and limited automation persist. Overall, NeST was concluded to be a significant step forward in improving public procurement practices within local government authorities in Tanzania. Therefore, the government should implement appropriate measures to improve the system's speed and ensure that all procuring entities have reliable internet access, allowing users to utilize the system effectively. Moreover, the system should integrate with other systems that are used in procurement contract management.