Governors Warn of Service Paralysis as e-Procurement Dispute Deepens
A growing rift between county governments and the National Treasury over the Electronic Government Procurement System (e-GP) has brought essential county operations to a near standstill, according to governors. The escalating tensions, which surfaced prominently during the 28th Ordinary Session of the Intergovernmental Budget and Economic Council at the Deputy President's official residence in Karen, have raised concerns about the system's practicality and its impact on service delivery.
The Council of Governors, led by Chairperson Ahmed Abdullahi, expressed frustration over the Treasury's insistence on using the e-GP system, which they argue is poorly structured and has created significant administrative challenges. The sudden introduction of multiple digital systems this financial year has led to confusion rather than the intended efficiency, delaying or suspending basic services across counties. Routine procurements, such as purchasing medicines and fuel, have become nearly impossible, severely limiting counties' ability to respond to emergencies.
Counties are facing operational gridlock, with some unable to pay staff due to delayed funds from the exchequer as the first quarter of the financial year concludes. The combination of these delays and the e-GP system's inefficiencies has strained service delivery, leaving governors with little room to address urgent needs. For instance, fuel vendors have frozen accounts for several counties, further hampering their ability to function effectively.
The governors have called for the Treasury to dismantle the current e-GP system and engage in fresh discussions to develop a more workable model. They argue that the system's implementation has been overly rigid, creating unnecessary obstacles and, in some cases, lacking legal backing. Without significant changes, they warn, counties will continue to face operational paralysis, potentially leading to a prolonged confrontation with the National Treasury.
Deputy President Kithure Kindiki defended the Treasury's push for digital procurement, emphasizing that the e-GP system is designed to enhance accountability and transparency. However, he acknowledged the need to reassess its rollout to address the governors' concerns. He stressed the importance of ensuring the system complies with constitutional requirements and promised to facilitate consultations with Treasury Cabinet Secretary John Mbadi and relevant parliamentary committees to find a resolution. Additionally, Kindiki urged both levels of government to collaborate on clearing pending bills, which continue to burden the economy.
The standoff highlights a broader challenge in balancing the push for digital transformation with the practical realities of governance at the county level. As the dispute deepens, the governors' firm stance signals a potential escalation unless a compromise is reached to streamline the e-GP system without disrupting essential county operations. The outcome of these discussions will likely shape the future of procurement processes and intergovernmental relations in Kenya.