By Reporter
Governors have vowed not to revert to the recently introduced electronic government procurement system (e-GPS) as they threatened to institute legal proceedings against the National Treasury for allegedly forcing them to use the new system.
Through the Council of Governors (CoG) caucus, the county chiefs accuse National Treasury Cabinet Secretary John Mbadi of ignoring a recent decision by the National Assembly to annul the mandatory use of e-GPS by all public procuring entities effective July 1, 2025.
The governors claim that the new system has been implemented haphazardly leading to confusion and paralysis in delivery of services in counties.
Last week, the National Assembly overturned a circular issued by Mbadi making it mandatory for all government procurement entities to use the Electronic Government Procurement (e-GP) system.
MPs sitting on the National Assembly’s Finance and National Planning Committee questioned the readiness of public entities to adopt the digital platform as well as its transparency and accessibility.
The National Treasury had last year issued the circular directing all public institutions, including ministries, state corporations, and county governments, to exclusively use the e-GP system for procurement activities by the end of the 2024/2025 financial year.
The government says the system, launched last July, was aimed at automating and streamlining procurement processes, enhancing transparency, efficiency, and accountability while reducing opportunities for graft.
Mbadi had said the government projected that the e-GP system could save Kenya up to Sh50 billion annually by curbing procurement-related corruption and inefficiencies.
But the MPs raised several concerns about the mandatory adoption of the e-GP system, arguing that it could disadvantage small and medium enterprises (SMEs) and businesses in remote areas with limited internet access.
Several legislators said the digital infrastructure required to support the system is not yet uniformly available across the country, particularly in rural regions.
They cited the risk of excluding businesses that lack the technological capacity or resources to engage with the online platform, potentially stifling economic participation.
The committee, chaired by Molo MP Kuria Kimani, also pointed out that the Treasury had failed to conduct adequate stakeholder consultations before issuing the circular.
They further said that the directive was implemented hastily, without sufficient training or sensitization for public institutions and suppliers.
Several legislators called for a phased approach to the e-GP system’s rollout, suggesting that the government address infrastructure gaps and provide capacity-building programs before enforcing mandatory use.
But Mbadi dismissed the MPs decision, claiming that they lacked powers to overturn his circular which he said only a Cabinet decision can revoke it.
Speaking during the Development Partnership Forum on Thursday, Mbadi insisted that government officers have no legal or procedural excuse to ignore his circular and that the country will not return to the manual procurement system.
“There has been contention that e-procurement was revoked. Let me be clear: Parliament has not revoked anything. If any government officer is going to use that as an excuse, I will not accept it,” Mbadi stated.
He explained that the circular, like other Treasury-issued directives on zero-based budgeting and the Treasury Single Account, remains legally binding and forms part of the government’s reforms to enhance transparency and efficiency in public financial management.
But governors are now accusing Mbadi of contravening a decision made by the National Assembly which they say is legally binding.
The county chiefs claim that the rollout of e-GPS has been hasty, incomprehensive and marred with inconsistencies that have caused confusion and paralysis of service delivery in various procuring entities.
“Legally, with the annulment of the circular, it is expected that all procuring entities will revert to the public procurement framework s before which is also provided for in existing laws and regulations,” CoG chairperson Ahmed Abdullahi says in a protest letter to Mbadi dated August 23, 2025.
Abdullahi says the implementation of the circular has been devoid of legal regulatory basis and has not considered the distinctiveness of county governments.
“In this regard, the council asks the National Treasury to lift any administrative blocks related to the implementation of e-GP, failure to which we shall be constrained to seek legal redress on the underlying issues as this borders on provision of services across all counties,” Abdullahi says.
