NAIROBI, Kenya – Parliament has escalated its standoff with the National Treasury over the rollout of the Electronic Government Procurement System (eGPS) by annulling two additional directives that sought to enforce the digital system across public entities.
The National Assembly Committee on Implementation on Tuesday recommended the nullification of two circulars from the Treasury and the Office of the Head of Public Service, arguing that they were unconstitutional and exceeded executive authority.
This move follows an earlier decision by MPs in August to annul Treasury Circular No. 04 of 2025, which had required all public entities to process contracts exclusively through the eGPS platform.
“The committee concurs with the annulment of Circular No. 04 of 2025 by the House,” Budalang’i MP Raphael Wanjala, who presented the report, told the House. “Further, the committee recommends that the House declare the two earlier circulars a nullity as they create ultra vires provisions contrary to Article 227 of the Constitution and Section 77(1) of the Public Procurement and Asset Disposal Act.”
The circulars under scrutiny were Ref. No. NT/PPD/1/3/14 Vol VI, issued on March 26, 2025, by the Treasury Cabinet Secretary, directing accounting officers to transition to eGPS by July 1, and Circular No. OP/CAB.6/2A, dated June 5, 2025, from the Head of Public Service, which reinforced the directive.
The committee said both directives contradicted procurement laws by seeking to impose eGPS without parliamentary approval or due process.
It also noted that funds for the 2024/25 financial year had already been released, directing government ministries, departments, and agencies to continue implementing projects under the approved procurement plans.
“Section 77(1) of the Public Procurement and Asset Disposal Act permits both manual and electronic procurement methods, ensuring flexibility and efficiency,” the report states.
The committee further accused the Treasury of disregarding constitutional principles of transparency, public participation, and accountability by enforcing the system through circulars instead of formal legislative amendments.
In August, Parliament adopted a separate report by the Committee on Delegated Legislation that also declared the Treasury’s eGPS directive unconstitutional, citing violations of Articles 2, 10, 27, 94, and 227 of the Constitution.
Despite the parliamentary pushback, Treasury Cabinet Secretary John Mbadi has maintained that the rollout will proceed.
The eGPS, launched on April 7, 2025, was introduced to streamline procurement, reduce graft, and ensure value for public money.
It followed a directive by President William Ruto during his November 2024 State of the Nation Address ordering full adoption by early 2025.
The implementation hit a legal snag in August when the High Court suspended the mandatory use of eGPS pending the outcome of a petition filed by the Council of Governors and four other parties.
Justice Bahati Mwamuye barred the Treasury from enforcing the circular that made the system compulsory, saying the move would have far-reaching implications on county operations.
Still, the Implementation Committee warned that the annulled circulars could be reintroduced through executive directives, pointing to a Cabinet resolution on June 24, 2025, which declared eGPS the “primary means of procurement” in all government transactions.
The escalating tussle underscores growing friction between Parliament and the Treasury over control of the procurement framework — a system central to government spending and accountability.
