NAIROBI, Kenya – The government has ordered an immediate suspension of all new public procurement processes under framework agreements and contracts, as it gears up for a nationwide transition to the Electronic Government Procurement System (e-GPS) set to go live on July 1, 2025.
In a circular issued on Monday, June 30, the Public Procurement Regulatory Authority (PPRA) directed all procuring entities to halt any ongoing or planned procurement activities for the 2025/26 financial year unless they are being conducted through the new digital system.
PPRA Director General Patrick Wanjuki said the directive is in line with government efforts to digitise procurement processes and enhance transparency, accountability, and efficiency in public spending.
“Procuring entities are to cease initiation of procurement processes for Financial Year 2025/2026 through framework agreements and refrain from issuing any awards or entering into contracts until after the rollout of the e-GPS,” Wanjuki said.
Transitioning to Digital Procurement
The e-GPS system, developed under the Public Procurement and Asset Disposal Act, is expected to automate the entire procurement cycle — from planning and bidding to contract management and payment — in a move designed to curb corruption, reduce delays, and improve service delivery.
The latest circular follows earlier directives from the Office of the President and the National Treasury mandating a full switch to the digital platform by all ministries, departments, and agencies (MDAs).
Procurement proceedings that have not yet reached the notification of award stage will be terminated under Section 63 of the Act, the circular said.
“All procuring entities are directed in the intervening period, and effective from the date of this circular, to invoke the provisions of Section 63 on termination and cancellation of procurement proceedings, provided that no letters of notification of awards have been issued.”
Existing Contracts Unaffected
PPRA clarified that existing contracts already in force are not affected by the suspension and that the Authority will issue further guidance on how those contracts will be managed during and after the transition.
“For avoidance of doubt, this Circular shall not apply to existing contracts, and the Authority shall in due course issue guidelines on existing contracts.”
Concerns from Suppliers
The sudden freeze in procurement has raised anxiety among suppliers and contractors who fear disruption to business operations.
However, the government has defended the decision as necessary to ensure a clean, transparent, and efficient procurement process under the new system.
Accounting officers in all public institutions have been instructed to enforce the directive and inform all officers involved in procurement and asset disposal within their agencies.
“All Accounting Officers are required to note and bring the contents of this Circular to the attention of all officers involved in the public procurement and asset disposal activities within their jurisdiction,” Wanjuki noted.
The suspension will remain in effect until the e-GPS is fully operational across government agencies.
