E-tendering plays a key role in ensuring that the best suppliers are selected for a continuous supply of better-quality products and services. The study focused on the role of e-tendering through online registration of suppliers, virtual screening, automatic evaluation and automated supplier selection criteria-through the use of an electronic Decision Support System (e-DSS). The study adopted the null hypothesis that e-tendering had no statistically significant influence on parastatals in Nakuru County. The study population included five (5) selected state-owned organisations in Nakuru municipality with a total population of 236 employees in selected departments where a sample size of 91 employees was drawn by application of Daniel’s (1999) sample size formula. Structured questionnaires were used as the main instrument to collect data, out of which 80 respondents gave their responses, an 87.9% response rate. The regression analysis showed a 4.6% change in organisational performance was described by e-tendering. The study confirmed there was a statistical significance (p=.000) between e-tendering and organisation performance, where e-tendering, as a supplier management tool, was able to account for a positive marginal significant increase (B=.133) in organisational performance. There was a moderate positive correlation between organisational performance and e-tendering at .519. The study recommends that parastatals enhance system integration for compatibility and easy access and flow of information, leverage technology, and facilitate training and educating their suppliers on how to use the organisation’s systems and other ICT-related functions.