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Treasury Defies Court and Parliament in Push for Mandatory E-Procurement System

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NAIROBI, Kenya — The National Treasury has insisted that all public entities must migrate to the electronic Government Procurement (eGP) system, brushing aside opposition from Parliament and a High Court order that suspended its mandatory use.

Appearing before the National Assembly’s Departmental Committee on Implementation of House Resolutions on Thursday, Treasury Cabinet Secretary John Mbadi defended the directive, saying manual procurement systems had long enabled corruption and drained public resources.

“Manual procurement can wait. We are not going back. This country is losing a lot of money through procurement flaws, and you gave me a job to clean that up,” Mbadi told lawmakers, adding that the government was determined to complete the transition to digital tendering.

The High Court on Monday suspended the mandatory eGP rollout pending determination of a case filed by the Council of Governors and four others.

Parliament had also annulled a circular mandating the system, citing constitutional violations.

But Mbadi argued that Treasury was legally empowered under the Public Finance Management Act, procurement regulations, and Article 227 of the Constitution to prescribe systems for public spending.

He further noted that President William Ruto had ordered the shift in his 2024 State of the Nation Address, and Cabinet later ratified it in June.

“Even if you annulled the PPRA circular, there is still the circular I issued in March and another by the Head of Public Service in June. We are telling our officers to go to e-procurement. Those resisting and waiting for miracles — that will not happen,” he said.

So far, Treasury has registered 1,379 procuring entities and 10,000 suppliers on the platform, with 14,000 officials and vendors trained.

According to Mbadi, 64 State departments, 94 county agencies, 635 State corporations and 37 county governments have already onboarded.

He said the eGP system would reduce costs, improve transparency, shorten tender cycles, and standardise procurement practices across government.

Still, MPs voiced concern that the hurried rollout was stalling business and locking out suppliers unfamiliar with the platform.

“This system was rushed, and there is no procurement going on in the first quarter of this financial year. Why not use both manual and electronic procurement methods as allowed in law?” committee chair Raphael Wanjala asked.

Other lawmakers, including Embakasi West MP Mark Mwenje and Trans Nzoia Woman Representative Lilian Siyoi, warned that small businesses risk exclusion unless the government allows a gradual transition.

Mbadi, however, remained firm. “We are not ignoring the court or the House. We are implementing e-procurement because the alternative is a leaky system that continues to drain taxpayers’ money,” he said.

Anthony Kinyua
Anthony Kinyua
Anthony Kinyua brings a unique blend of analytical and creative skills to his role as a storyteller. He is known for his attention to detail, mastery of storytelling techniques, and dedication to high-quality content.

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