This study sought to establish the determinants of procurement efficiency in government parastatals in Kenya. The study was guided by the following specific objectives:- to establish how financial capacity influence procurement efficiency in government parastatals in Kenya and to determine how inventory management affects influence procurement efficiency in government parastatals in Kenya. Descriptive research design was used for the study. The target population for this study was 86 employees drawn from planning, construction, Human resource & Administration, Legal, Audit and procurement departments. Primary data was collected using questionnaires. The quantitative data was entered into SPSS for analysis. Factor analysis was then applied to reduce the data which was finally used for analysis. Both quantitative and qualitative data analysis techniques were used. Quantitative data was analyzed using descriptive statistics while qualitative data was analyzed by the use of content analysis. The data showed that the high R square was 0.799. It showed that the independent variables in the study were able to explain 63.80% variation in the  procurement efficiency while the remaining 36.20% was explained by the variables or other aspects outside the model. This implied that these variables were very significant and they therefore needed to be considered in any effort to boost procurement efficiency in the government parastatals.The study was a milestone for further research in the field of procurement performance in state corporations in Africa and particularly in Kenya. The findings demonstrated the important factors to enhancement of procurement efficiency to include; financial capacity and inventory management. The current study should therefore be expanded further in future in order to determine the effect of procurement legal framework on procurement efficiency in government Parastatals. 

Key Terms: Financial Capacity, Inventory Control Management, Procurement Efficiency

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