Legal ForumExample Category: LSK Kajiado ForumMPs Reject Mandatory e-GP System …Post Reply

Post Reply: MPs Reject Mandatory e-GP System for Public Procurement

<blockquote><div class="quotetitle">Quote from <a class="profile-link highlight-moderator" href="https://lawguide.co.ke/understanding-law/legal-forum/profile/lawyer/">Lawyer</a> on August 20, 2025, 8:16 am</div><div id="pl-7626"  class="panel-layout" ><div id="pg-7626-0"  class="panel-grid panel-no-style" ><div id="pgc-7626-0-0"  class="panel-grid-cell"  data-weight="1" ><div id="panel-7626-0-0-0" class="so-panel widget widget_sow-editor panel-first-child panel-last-child" data-index="0" data-style="{&quot;background_image_attachment&quot;:false,&quot;background_display&quot;:&quot;tile&quot;,&quot;background_image_size&quot;:&quot;full&quot;,&quot;background_image_opacity&quot;:&quot;100&quot;,&quot;border_thickness&quot;:&quot;1px&quot;}" ><div
			
			class="so-widget-sow-editor so-widget-sow-editor-base"
			
		>
<div class="siteorigin-widget-tinymce textwidget">
	<p dir="ltr" data-pm-slice="1 1 []">In a significant development in Kenya's public procurement landscape, Members of Parliament (MPs) have rejected a National Treasury circular mandating the use of the Electronic Government Procurement (e-GP) system for all public institutions. The decision, made during a heated session of the National Assembly's Finance and National Planning Committee, has sparked debates over transparency, accessibility, and the readiness of public entities to adopt the digital platform.</p>
<p dir="ltr">The Treasury's circular, issued earlier this year, directed all public institutions, including ministries, state corporations, and county governments, to exclusively use the e-GP system for procurement activities by the end of the 2024/2025 financial year. The system, launched in July 2025, aims to automate and streamline procurement processes, enhancing transparency, efficiency, and accountability while reducing opportunities for graft. The Treasury projected that the e-GP system could save Kenya up to Sh50 billion annually by curbing procurement-related corruption and inefficiencies.</p>
<p dir="ltr">However, MPs raised several concerns about the mandatory adoption of the e-GP system, arguing that it could disadvantage small and medium enterprises (SMEs) and businesses in remote areas with limited internet access. Many legislators emphasized that the digital infrastructure required to support the system is not yet uniformly available across the country, particularly in rural regions. They highlighted the risk of excluding businesses that lack the technological capacity or resources to engage with the online platform, potentially stifling economic participation.</p>
<p dir="ltr">The committee, chaired by Molo MP Kuria Kimani, also pointed out that the Treasury failed to conduct adequate stakeholder consultations before issuing the circular. MPs argued that the directive was implemented hastily, without sufficient training or sensitization for public institutions and suppliers. Several legislators called for a phased approach to the e-GP system's rollout, suggesting that the government address infrastructure gaps and provide capacity-building programs before enforcing mandatory use.</p>
<p dir="ltr">Another key issue raised was the potential for the e-GP system to create barriers for youth, women, and persons with disabilities, who are prioritized under Kenya's Access to Government Procurement Opportunities (AGPO) program. The AGPO initiative reserves 30% of government procurement opportunities for these groups, but MPs expressed concerns that the digital shift could limit their ability to compete for tenders due to technological challenges.</p>
<p dir="ltr">The rejection of the circular comes amid broader scrutiny of public procurement practices in Kenya. The Ethics and Anti-Corruption Commission (EACC) has been actively monitoring county transactions, warning of increased fraudulent payments and fabricated pending bills as the financial year closes. The EACC's efforts underscore the urgency of reforming procurement processes, but MPs argue that the e-GP system, in its current form, may not be the comprehensive solution the Treasury envisions.</p>
<p dir="ltr">Treasury Cabinet Secretary John Mbadi defended the e-GP system, emphasizing its potential to transform public procurement by reducing human intervention and minimizing corruption risks. He cited successful case studies from other countries, such as South Korea and India, where e-procurement systems have significantly improved transparency and efficiency. Mbadi assured MPs that the Treasury is committed to addressing connectivity issues and providing training to ensure a smooth transition. However, he acknowledged the need for further engagement with stakeholders to refine the system's implementation.</p>
<p dir="ltr">The Finance and National Planning Committee has directed the Treasury to suspend the mandatory use of the e-GP system until comprehensive consultations are held with all relevant stakeholders, including county governments, SMEs, and marginalized groups. The committee also called for a detailed report on the system's pilot phase, which was conducted in select ministries and state agencies, to assess its effectiveness and identify areas for improvement.</p>
<p dir="ltr">Public reactions to the MPs' decision have been mixed. Some Kenyans, particularly in the business community, have welcomed the move, arguing that it protects small-scale traders who rely on government contracts. Others, however, view the rejection as a setback in the fight against corruption, believing that the e-GP system could have curbed the mismanagement of public funds. Social media platforms have been abuzz with discussions, with some users urging the government to invest in digital infrastructure to support the system's eventual adoption.</p>
<p dir="ltr">The debate over the e-GP system reflects broader challenges in Kenya's quest for transparent and inclusive public procurement. As the government navigates these issues, the balance between technological advancement and equitable access remains a critical consideration. For now, the Treasury must go back to the drawing board, engaging stakeholders to ensure that the e-GP system, or any alternative procurement reforms, align with the needs of all Kenyans.</p>
</div>
</div></div></div></div></div>

Cancel

Legal Forums

Post Reply: MPs Reject Mandatory e-GP System for Public Procurement

Recent Posts

Crisis at Kenyatta National Hospital: Senators Demand Action on Overcrowding and Security Failures

Court Orders Equal Pay for UHC Nurses Amid Absorption Plan