Treasury CS Mbadi Defends e-Procurement System, Rejects World Bank Involvement Claims

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Treasury Cabinet Secretary John Mbadi has refuted allegations that the World Bank is driving the adoption of Kenya's electronic procurement system, clarifying that the system is managed by the government in collaboration with an Indian company. During his appearance before the National Assembly's Committee on Implementation of the Constitution on Thursday, Mbadi provided a detailed account of the system's history and purpose, emphasizing its role in combating corruption and improving efficiency in public procurement.

Mbadi explained that the e-procurement system was first introduced in 2018, with no involvement from the World Bank in its acquisition. He noted that the government purchased the system in 2022 for Ksh387 million to transition away from the manual procurement process, which he described as outdated and prone to graft. "The manual procurement system is archaic, outdated, and promotes wastage," Mbadi stated, underscoring the government's decision to fully adopt the electronic system to enhance transparency and accountability.

Despite the Treasury's push for e-procurement, lawmakers raised concerns about the system's rushed implementation. They argued that the National Treasury should allow both manual and electronic procurement systems to coexist while building user capacity across the country. MP Mark Mwenje challenged the Treasury's stance, questioning, "Why is the National Treasury insisting that all procurement processes must strictly be carried out through this system while the law provides for both a manual and an electronic system?"

In response, Mbadi mounted a robust defense of the e-procurement system, describing it as "an effective tool against graft." He acknowledged that the law permits both systems but argued that the government had chosen the electronic option as the superior choice for curbing wastage and corruption. "We have not invented a new law. We are implementing the available law. When the law gives you either-or, you choose the best," he told the committee.

Mbadi further highlighted his commitment to procurement reforms, recalling promises made during his approval hearings. "Honourable members, I committed during my approval hearings that I would introduce particular reforms if appointed to office, including e-procurement," he said. He stressed that the administration of President William Ruto is operating in a constrained fiscal environment with limited options for raising taxes, making it critical to eliminate loopholes for the misappropriation of public resources. "We have to seal all loopholes for pilferage of public resources, key among them the public procurement process, if we are to meet our obligations," Mbadi reiterated.

The Treasury CS's remarks underscore the government's determination to modernize procurement processes and strengthen fiscal discipline, even as lawmakers call for a more gradual transition to ensure effective implementation nationwide.