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Post Reply: Treasury CS Mbadi Insists on E-Procurement Rollout Despite High Court Suspension

<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 September 19, 2025, 5:48 am</div><div id="pl-7939"  class="panel-layout" ><div id="pg-7939-0"  class="panel-grid panel-no-style" ><div id="pgc-7939-0-0"  class="panel-grid-cell"  data-weight="1" ><div id="panel-7939-0-0-0" 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
			
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	<p dir="ltr" data-pm-slice="0 0 []">The National Treasury, led by Cabinet Secretary John Mbadi, remains steadfast in its commitment to implementing the electronic Government Procurement (eGP) system across all public entities, despite resistance from Parliament and a High Court suspension. Mbadi emphasized that manual procurement systems have long been a significant source of corruption and revenue loss, making the transition to digital procurement critical for enhancing transparency and efficiency.</p>
<p dir="ltr">Speaking on Thursday before the National Assembly’s Departmental Committee on Implementation of House Resolutions, Mbadi reiterated the government’s directive for all procuring entities to adopt the e-tendering system. He dismissed concerns raised by a recent court ruling and parliamentary actions opposing the mandatory use of eGP. In August, the National Assembly annulled a circular issued by the Public Procurement Regulatory Authority (PPRA), Circular No. 04/2025, which mandated the use of eGP, citing constitutional concerns. Additionally, Justice Bahati Mwamuye issued a High Court order on Monday suspending the mandatory use of eGP pending the determination of a petition filed by the Council of Governors and four other parties.</p>
<p dir="ltr">Mbadi, however, stood firm, citing his authority under Article 227 of the Constitution and the Public Finance Management Act, Regulations 2020. He referenced a circular he issued in March and another by the Head of Public Service in June, both reinforcing the adoption of eGP. "We are not ignoring any court order. We are not ignoring resolutions of the National Assembly. We are implementing an electronic procurement system. The manual system can wait," Mbadi declared. He noted that certain agencies, such as KenGen and Kenya Pipeline Company, are exempt from the mandate as they already operate their own e-procurement systems.</p>
<p dir="ltr">The push for eGP aligns with President William Ruto’s directive during his State of the Nation Address on November 21, 2024, which called for the Treasury to fully roll out the eGP system by the first quarter of 2025. This directive was further reinforced in the 2025/26 Budget statement and a Cabinet resolution in June, designating eGP as the primary procurement method across all government entities.</p>
<p dir="ltr">Mbadi highlighted the benefits of the eGP system, stating it would reduce costs for goods, works, and services, increase transparency, and improve efficiency by minimizing procurement cycle times. He also emphasized that the system ensures value for money, accountability, confidentiality, and authentication of transactions between procuring entities and suppliers. Additionally, eGP standardizes processes, streamlines procedures, and enhances procurement information management, facilitating better planning, monitoring, evaluation, and reporting.</p>
<p dir="ltr">To support the rollout, the National Treasury has undertaken significant efforts, including registering 1,379 procuring entities and 10,000 suppliers on the eGP platform. Over 14,000 officials and suppliers have received training to ensure smooth adoption. Mbadi reported that 64 State departments, 94 county government entities, 635 State corporations, and 37 county governments have already been onboarded. The Treasury has also conducted extensive registration exercises and issued additional circulars to ease implementation.</p>
<p dir="ltr">Addressing the committee, chaired by Budalangi MP Raphael Wanjala, Mbadi underscored the vulnerabilities of manual procurement systems, which he described as prone to manipulation and responsible for substantial losses of taxpayer money. "This country is losing a lot of money through procurement flaws. You gave me a job, please allow me to do the job of cleaning up procurement flaws," he urged MPs.</p>
<p dir="ltr">Despite the High Court’s suspension and Parliament’s resistance, Mbadi made it clear that the government has no intention of reverting to manual procurement. "There are those resisting and waiting for miracles to happen, but that will not happen. We are not going back to manual procurement," he asserted, signaling the Treasury’s unwavering commitment to digital transformation in public procurement.</p>
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