County Projects Stall as E-Procurement Rollout Faces Glitches
Development projects across Kenya's 47 counties are facing significant delays due to ongoing challenges in the implementation of the electronic government procurement (e-GP) system. A recent report from the Parliamentary Budget Office highlights how the mandatory transition to this digital platform has created bottlenecks in procurement processes during the early months of the 2025-26 financial year.
The e-GP system, designed to handle all public procurement activities from tender advertisement to contractor payments, has encountered multiple technical and operational issues. These include frequent system downtime, limited capacity among users, and lengthy approval workflows that have extended procurement cycles considerably. County leaders have described the rollout as rushed, with insufficient testing and inadequate training provided to procurement staff, making the platform difficult to navigate and operate effectively.
According to the Controller of Budget's report, the impact has been stark. Between July and September 2025, 20 counties recorded zero development expenditure, while the remaining 27 counties collectively spent only Sh3.69 billion. This represents a mere 2 percent of the total Sh218.99 billion allocated for development budgets nationwide. The slow adaptation to the e-GP platform is largely blamed for these minimal spending levels, as counties struggle to award contracts, purchase essential goods and services, or initiate critical projects.
The delays are affecting infrastructure development, such as roads and public buildings, as well as essential service programs in health, education, and other sectors that directly benefit residents. Without timely procurement, project starts and completions have been postponed, potentially weakening overall public investment outcomes and reducing the fiscal multiplier effect.
Compounding the situation, counties owed contractors Sh51.79 billion for completed works as of the end of September 2025. The Parliamentary Budget Office warns that this figure could continue to rise if the procurement challenges persist, leading to an accumulation of pending bills and further strain on county finances.
The issues stem from the mandatory enforcement of the e-GP system across all procuring entities, including counties, without sufficient preparation for the transition. While the platform aims to enhance transparency and efficiency in public spending, the current glitches and capacity constraints have instead disrupted normal operations. County leaders emphasize that they are not opposed to digital procurement in principle but require a more functional and user-friendly system supported by comprehensive training and phased implementation.
The Parliamentary Budget Office cautions that continued delays in addressing these challenges will hamper budget execution, slow county development progress, and ultimately affect service delivery to citizens. As the 2025-26 financial year progresses, the focus remains on resolving the technical hurdles to allow counties to fully implement their development agendas.