KISUMU, Kenya, August – The National Government has emphatically stated it will not reverse course on the implementation of the new Electronic Government Procurement (e-GP) law, despite a recent parliamentary annulment of its directive and significant pushback from county governments.
Public Investments and Assets Management Principal Secretary Cyrell Odede declared that the government will not return to the manual procurement system.
“The manual procurement system is ‘the mother of all scandals’,” and we anticipate annual savings of up to Sh250 billion through the new digital platform,” Odede said.
The PS’s strong remarks were made during the closing ceremony of a Counties’ Sensitisation workshop on Asset Management and the roll-out of the Integrated Financial Information Management Systems (IFMIS) Asset/Inventory Module in Kisumu recently.
This stance comes a day after Parliament annulled a National Treasury circular that directed counties to submit their budgets exclusively through the e-GP System.
Legislators cited persistent technical challenges and upload difficulties that counties claimed had effectively grounded their operational activities.
The Council of Governors (COG) had threatened to revert to the manual system in response.
In a sharp rejoinder, Odede termed Parliament’s move as “inconsequential,” stating, “the law was clear and the train had already left the station.”
He emphasized that the Public Procurements and Asset Disposal Act (2015) provides the legal foundation for the shift.
“All entities are required to have fully transitioned by the end of FY 2026/2027 as guided by the Public Sector Accounting Standards Board,” the PS stated, indicating that the current challenges are teething problems rather than a cause for reversal.
Odede revealed that despite the widely reported issues, progress is being made. He confirmed that over 30 county budgets had been successfully uploaded to the system by Friday.
“The National Treasury teams are working round the clock to assist the remaining devolved units,” Odede assured.
The National Treasury, under Cabinet Secretary John Mbadi, officially launched Phase I of the e-GP System on April 7, 2025.
As of July 1, 2025, all government procurement processes are mandated to be conducted exclusively through the new portal, www.egpkenya.go.ke.
This reform, the top officials stress, is a cornerstone of the government’s digital transformation agenda and follows a direct directive from President William Ruto during his State of the Nation address on November 21, 2024.
Dr Ruto had ordered the National Treasury to ensure complete deployment of the system by the first quarter of 2025.
The Treasury has touted the e-GP system as a key pillar in enhancing efficiency, accountability, and value for money in the use of public funds.
It is expected to promote fair, transparent, competitive, and cost-effective procurement by integrating all processes in line with existing legislation.
The benefits, as outlined by the government, include reduced procurement costs, greater transparency and accountability.
They are emphasising that the system offers faster procurement cycle times, enhanced confidentiality, and standardized processes across all government entities.
Furthermore, it will provide improved data management for planning, monitoring, and evaluation.
A critical requirement of the new system is that all suppliers, contractors, and consultants intending to do business with the government must self-register on the e-GP portal.
This registration is now a compulsory prerequisite for partaking in any government tenders or transactions. The move is also supported by international financial institutions.
According to the World Bank’s 2020 Public Expenditure Review, Kenya stands to save over Sh85.9 billion annually, equivalent to 0.9 per cent of the Gross Domestic Product (GDP) ,simply by improving procurement efficiency through the e-GP platform.
