By Anderson Ojwang
The new procurement system will finally bring an end to the manipulation of procurement process and tackle corruption in tendering.
For eons, cartels have manipulated the tendering process and denied other players fair competition in contract awards.
This explains the opposition to the recent new e-procurement system introduced by Treasury and Economic Planning Cabinet Secretary John Mbadi.
The National Treasury 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.
Recently, the Council of Governors demanded that Treasury revert to the previous procurement system, or they will defy and seek legal redress.
The governors claim that the new system has been implemented haphazardly leading to confusion and paralysis in delivery of services in counties.
Council of Governors Chairperson Ahmed Abdullahi said: “We have a crisis regarding e-procurement. Something operationally is not adding up, and we might end up not absorbing any funding.”
Similarly, in the National Assembly, the MPs unanimously endorsed a report by the Delegated Legislation Committee to annul a circular requiring all government agencies to procure goods and services exclusively through the new electronic government procurement system (e-GP).
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.
But Mbadi has stood his ground that all the procurement process must go through the new system and dismissed Parliament’s move to annul a circular mandating all public institutions to use the electronic system, insisting that only the Cabinet can overturn such a government directive.
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.
“I issued a circular for the adoption of e-procurement and that is still the position until Cabinet revokes it. I did not present anything to Parliament for revocation.
There has been contention that e-procurement was revoked.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
Those opposing the transition are individuals keen on manipulating the procurement system for selfish interests.
I was hired to bring change. Parliament vetted me, and I told them I would implement e-procurement, and they applauded me for it. So how can Parliament now turn around and say the move violates the Constitution? They should show me where,” he said
Mbadi has maintained that the e-procurement directive remains intact, and Parliament has no power to revoke it.
He warned against attempts to undermine the system by some individuals with vested interests in manual tendering processes, noting that opposition to the new system is rooted in efforts to preserve corruption loopholes.
“They want us to go back to manual so they can manipulate tenders by plucking papers.
Once the POs are prepared, we lock the budget. That means when you make payments, they align with the purchase orders. This eliminates cases where you procure but can’t pay because the budget was used elsewhere, “he said.
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.
Mbadi said already 31 counties have submitted budgets and received clearance from the Controller of Budget, four counties are ready to upload on the e-GP system, while 27 counties are finalizing their submissions.
Deputy President Kithure Kindiki acknowledged challenges facing some county governments and national government agencies, including his own office, but emphasized that the issues must be resolved, not used as an excuse to return to manual procurement.
Kindiki : “We agree that counties and even my office are experiencing challenges on e-procurement. But we must resolve them, because we will never accept going back to the manual system.”
The Council of Governors (CoG) caucus, have accused 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.
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.
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