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Post Reply: National Assembly Strikes Down Treasury's Push for Mandatory eGPS Procurement, Citing Constitutional Overreach

<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 October 22, 2025, 7:51 am</div><div id="pl-8368"  class="panel-layout" ><div id="pg-8368-0"  class="panel-grid panel-no-style" ><div id="pgc-8368-0-0"  class="panel-grid-cell"  data-weight="1" ><div id="panel-8368-0-0-0" 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="auto"><strong>Nairobi, </strong> - The National Assembly has nullified two key directives from the National Treasury aimed at enforcing the Electronic Government Procurement System (eGPS), escalating a heated standoff between Parliament and the executive branch over public spending reforms. The decision, adopted through a parliamentary committee report, reinforces earlier parliamentary rejections and underscores deep concerns about bypassing constitutional safeguards in the rollout of digital procurement tools.</p>
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<h4 dir="auto">The Roots of the eGPS Initiative: A Push for Digital Efficiency</h4>
<p dir="auto">The eGPS platform emerged as a cornerstone of the government's broader agenda to modernize public procurement and curb inefficiencies in taxpayer-funded projects. Launched on April 7, 2025, by Treasury Cabinet Secretary John Mbadi, the system promises to streamline processes, boost accountability, and deliver better value for money. At its core, eGPS seeks to foster fair, transparent, competitive, and cost-effective bidding by centralizing all government tenders on a single digital hub.</p>
<p dir="auto">This ambitious rollout traces back to President William Ruto's State of the Nation Address on November 21, 2024, where he issued a firm directive for full implementation by the first quarter of 2025. Under the Treasury's vision, only procurements routed through eGPS would qualify for payment approval, effectively sidelining traditional manual methods. Proponents argue that such a shift could save billions in public funds annually by reducing corruption risks and accelerating tender awards. However, critics, including county leaders and procurement experts, have long warned of implementation hurdles, such as inadequate digital infrastructure in rural areas and the potential exclusion of smaller suppliers unfamiliar with online systems.</p>
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<h4 dir="auto">Timeline of Directives and Parliamentary Pushback</h4>
<p dir="auto">The Treasury's enforcement campaign unfolded through a series of circulars and cabinet resolutions, each layering on stricter compliance measures. It began with a July 23, 2025, circular from the Treasury, mandating that only contracts reported to the Public Procurement Regulatory Authority (PPRA) would receive payment nods. This set the stage for more aggressive steps.</p>
<p dir="auto">On March 26, 2025, Cabinet Secretary Mbadi issued Circular Ref. No. NT/PPD/1/3/14 Vol VI, instructing all accounting officers to migrate to eGPS starting July 1, 2025. This was followed by Circular No. OP/CAB.6/2A on June 5, 2025, from the Head of Public Service, which echoed the call for full onboarding across procuring entities and paved the way for Circular No. 04 of 2025. That August 12, 2025, PPRA circular explicitly required all public bodies to adopt eGPS without exception. Compounding these, a June 24, 2025, Cabinet directive during its fourth meeting declared eGPS as the primary channel for all government transactions.</p>
<p dir="auto">Parliament's response was swift and unyielding. On August 19, 2025, the National Assembly, acting on the Committee on Delegated Legislation's report, annulled Circular No. 04 of 2025, deeming it an overreach. Yet, as enforcement persisted through backdoor channels, the Committee on Implementation, led by Ainabkoi MP Samuel Chepkonga, stepped in. Their latest report, tabled by Budalang’i MP Raphael Wanjala, identifies gaps in the prior annulment: it failed to address the lingering force of the March 26 and June 5 circulars, as well as the Cabinet's June 24 resolution.</p>
<p dir="auto">The committee's recommendation, now adopted by the House, declares these two additional circulars null and void. Wanjala's detailed analysis points out that the directives introduce provisions beyond legal bounds, directly clashing with Article 227 of the Constitution, which governs public contracts, and Section 77(1) of the Public Procurement and Assets Disposal Act. These laws explicitly allow flexibility for both manual and electronic methods, ensuring adaptability rather than rigid mandates. With the 2024/25 fiscal year budgets already disbursed, the report stresses that ongoing projects must adhere to pre-approved procurement plans, free from retroactive eGPS impositions.</p>
<h4 dir="auto">Voices from the Floor: Defending Parliamentary Prerogative</h4>
<p dir="auto">MP Wanjala laid out the committee's rationale with precision, arguing that the Treasury's moves undermine core constitutional pillars. He highlighted violations of Article 2(1) and (2) on the supremacy of the Constitution, Article 10's national values like transparency and accountability, Article 27(2) on equal treatment, Article 94(5) affirming Parliament's oversight role, and Article 227's emphasis on equitable procurement. The directives, he contended, sidestep required public participation and parliamentary scrutiny, turning executive policy into de facto law without due process.</p>
<p dir="auto">Chepkonga, as committee chair, echoed these sentiments, noting that while eGPS holds promise, its forced adoption ignores practical realities on the ground. The lawmakers' stance aligns with broader calls for balanced reform, where digital tools enhance rather than dictate procurement.</p>
<h4 dir="auto">Judicial Intervention Adds Another Layer</h4>
<p dir="auto">Complicating the Treasury's plans further is a High Court ruling that temporarily halts mandatory eGPS use. Justice Bahati Mwamuye issued the suspension following a petition from the Council of Governors alongside four other entities, arguing that the rollout discriminates against devolved units with varying technological capacities. This judicial brake, pending full hearing, buys time for stakeholders to refine the system but signals potential long-term delays in nationwide adoption.</p>
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<h4 dir="auto">Broader Ramifications: Tensions in Governance and Fiscal Future</h4>
<p dir="auto">This latest nullification amplifies a brewing power struggle between the legislative and executive arms, reminiscent of past clashes over budget controls and devolution. For public entities and counties, it means breathing room: procurements can proceed via hybrid methods, preventing disruptions to critical infrastructure and service delivery projects funded under the current budget cycle. Small and medium enterprises, often hit hardest by digital barriers, stand to benefit from continued access to manual bidding.</p>
<p dir="auto">Yet, the ruling casts a shadow over the government's digital transformation goals. Full eGPS integration could unlock data-driven insights into spending patterns, potentially slashing graft and optimizing resources. Delayed enforcement risks perpetuating inefficiencies, with estimates suggesting manual systems contribute to up to 30 percent of procurement delays. As Parliament digs in, the Treasury may pivot to legislative amendments or pilot programs to regain momentum, but any such moves will face intense scrutiny.</p>
<p dir="auto">In the end, this episode reaffirms Parliament's gatekeeping role in fiscal matters, ensuring reforms serve the public good without trampling legal foundations. As Kenya navigates economic pressures, the eGPS saga serves as a litmus test for collaborative governance in the digital age. Stakeholders await the next session, where the full implications of these annulments will unfold.</p>
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