Kenyan Treasury Secretary John Mbadi defends the rapid implementation of the e-procurement platform despite opposition from MPs and a court suspension, emphasising its role in combating corruption and enhancing transparency.
Kenya’s Cabinet Secretary for National Treasury and Economic Planning, John Mbadi, has robustly defended the government’s accelerated rollout of the Digital Procurement System (E-Procurement), despite significant opposition from Members of Parli...
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ament and a recent judicial ruling challenging its mandatory implementation.
During a parliamentary session on September 19 with the Select Committee on Implementation, MPs expressed strong concerns about the rapid pace of the e-procurement system’s adoption. They argued that a phased rollout is essential to prevent disruptions in procurement processes, especially given the limited training of procurement officers nationwide. Committee Chairperson Hon. Raphael Wanjala questioned why the government had not introduced new legal regulations or amended the Public Procurement and Asset Disposal Act of 2015 to formally anchor the system in law. Other MPs, including Mark Mwenje, underscored the legal allowance for both manual and electronic procurement processes, urging a more cautious transition.
Kakai Bisau, attending as a “friend of the committee,” reinforced the call for gradual implementation to ensure officers receive adequate training and to mitigate the risk of stalling crucial government projects. However, CS Mbadi dismissed the idea of retaining dual systems in the long run, describing manual procurement as an outdated practice fraught with abuse and wastage of public funds. He emphasised that over 14,000 officers have been trained, 1,379 procuring entities have registered, and some 10,000 suppliers are now integrated into the platform, presenting the new system as a powerful tool against corruption.
Mbadi argued that the government is not introducing new legislation but rather leveraging existing laws that allow either manual or electronic procurement. He reminded the assembly that he had committed during his parliamentary vetting to introduce reforms focusing on transparency and anti-corruption measures. “When the law gives you either/or, you choose the best,” he stated. Linking e-procurement to prior reforms like the Integrated Financial Management Information System (IFMIS), he said the digital platform would enhance transparency and curb graft.
Nonetheless, the initiative faces ongoing legal and institutional challenges. The High Court in Nairobi has recently issued a temporary suspension barring the mandatory use of the e-Government Procurement System (e-GPS) by public entities. This ruling came after a petition contested Treasury’s directive that all procurement activities must be exclusively conducted via e-GPS, effectively allowing entities to continue with manual systems pending the case’s determination. The ruling represents a significant pushback from various stakeholders, including the National Assembly and the Council of Governors, who argue that the rollout is ill-prepared.
Additionally, CS Mbadi made clear that certain exemptions exist: procurements delayed from the 2024/2025 financial year, such as those related to the National Government Constituencies Development Fund (NG-CDF), National Government Affirmative Action Fund (NGAAF), and county government funds, will not be forced into the e-procurement system. Public entities possessing robust existing digital procurement platforms, such as Kenya Pipeline and Kenya Electricity Generating Company (KENGEN), may also be granted exemptions.
A firm government stance is evident in Mbadi’s declaration to the Senate that no payments will be processed for suppliers not registered on the e-GP system as of July 1, 2025. This move underlines the government’s determination to fully digitise procurement activities — from tendering through to contract management — and cut out fraud and inefficiencies linked to manual processes. The decision to lock down government payments for non-compliant suppliers signals the Treasury’s resolve to enforce the transition despite opposition.
The Treasury’s insistence on e-procurement also stems from the system’s stringent safeguards. According to Mbadi, the digital platform locks records once uploaded, preventing any alteration or deletion, thus ensuring full transparency and traceability—features that have unsettled some procurement officials accustomed to the manual system’s flexibility. Mbadi interprets this resistance as a natural response to reforms targeting longstanding loopholes exploited for corrupt practices.
While the government continues to push for e-procurement as the future of public procurement, the unfolding legal battles and parliamentary concerns highlight significant challenges ahead. The case before the High Court will be closely watched, as it has the potential to influence the pace and nature of Kenya’s digital procurement transformation. Meanwhile, Mbadi and his team reaffirm their commitment to the controversial reform, framing it as critical for improved accountability and efficient management of public resources.
Source: Noah Wire Services
