NAIROBI, Kenya — The government has issued a final warning to contractors and officials involved in the Electronic Government Procurement (e-GP) system after persistent failures continued to disrupt public procurement across State departments and agencies.
Public Investments and Assets Management Principal Secretary Cyrell Wagunda said the continued non-performance of the e-GP system was unacceptable and would attract swift and decisive action.
Speaking during a meeting with the e-GP Contract Implementation Committee, Wagunda said public procurement was central to translating government budgets into goods, works, and services that drive economic growth and sustain public service delivery.
“Procurement is the key conduit through which budgeted funds are deployed to implement policy and deliver services to citizens,” Wagunda said.
He warned that repeated disruptions to the e-GP system had severely constrained procurement activities, delaying project implementation and interrupting the supply of essential goods and services across government.
The PS said the impact extended beyond government operations, with negative spill-over effects on the wider economy.
According to Wagunda, delayed procurement spending has weakened business revenues and cash flows, particularly for small and medium-sized enterprises, leading to delayed payments, job losses, and reduced household incomes, and dampened consumer spending.
He cautioned that the continued failures were undermining state functionality, private sector activity, and household welfare, posing risks to economic stability and growth.
Wagunda said that whether the disruptions arose from systemic weaknesses or deliberate interference, the failures placed the State Department and the National Treasury in a negative light.
He issued what he termed a final notice to all parties responsible for failure, obstruction—by action or inaction—and non-performance in the rollout of the e-GP system.
“The prevailing conduct is inconsistent with contractual obligations and the duty to act in good faith and in the best interests of government,” he said.
The PS warned that deliberate delays, system interference, withholding of technical cooperation, misrepresentation of progress, or failure to escalate and address risks would be treated as willful breach of contract and possible sabotage of the national procurement platform.
With immediate effect, Wagunda directed that comprehensive details be submitted on the e-GP contract, all contract variations, the current implementation status, and the real challenges affecting the system.
He also demanded full compliance with contractual deliverables, performance standards, and service-level obligations, alongside frequent progress updates in line with approved governance structures.
Wagunda stressed that the e-GP system is a statutory fiscal reform of national importance and is not optional.
“This constitutes a final warning,” he said, adding that any further non-compliance would trigger firm and decisive action, regardless of the parties involved.
