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Government insists on E- Procurement Law

Public Investments and Assets Management PS Cyrell Odede has said the government will not back down on the new e- procurement law

Odede said despite the challenges the counties are experiencing in uploading their budgets on the newly launched Electronic Government Procurement (e-GP) System, the government will not return to the manual procurement system, which he said was marred with corruption.

“We anticipate that the Government will save up to Sh.250 billion annually through the new system. The manual procurement in this country has been the mother of all scandals,” he stated.

The PS was speaking during the closing ceremony of Counties’ Sensitisation on Asset Management and roll-Out of the of Integrated Financial Information Management Systems (IFMIS) Asset/Inventory Module in Kisumu on Friday.

Odede revealed that despite the challenges the counties are facing in uploading their budgets to the system, over 30 budgets from the devolved units had been uploaded by this Friday and the team at the National Treasury is working round the clock to ensure that all their budgets have been uploaded.

There has been hue and cry from counties over the delay in uploading their budgets to the Electronic Government Procurement (e-GP) System, with governors threatening to go back to the manual procurement system.

On Thursday, Parliament annulled the circular directing counting to submit their budgets through the Electronic Government Procurement (e-GP) System, citing challenges with uploading, which the counties claimed had grounded activities on the ground.

But in a sharp rejoinder Friday, Odede termed the move as inconsequential, stating the law was clear and the train had already left the station.

“All entities are required to have fully transitioned by the end of FY 2026/2027 as guided by the Public Sector Accounting Standards Board,” the PS said.

The National Treasury officially launched Phase I of the Electronic Government Procurement (e-GP) System on 7th April 2025 and starting 1st July 2025, all government procurement processes are supposed to be exclusively conducted through the e-GP system.

The National Treasury and Economic Planning CS John Mbadi  officially recently launched Kenya’s long-awaited e-Government Procurement (e-GP) system, marking a major step in the country’s digital transformation agenda, terming the reform a key pillar in enhancing efficiency, accountability, and value for money in the use of public funds. It’s also expected to promote fair, transparent, competitive, and cost-effective procurement.

 He said the e – GP system  integrate all procurement processes in line with the Public Procurements and Asset Disposal Act 2015 and its associated Regulations and all public procuring entities will be required to use it.

Thus, the  National Treasury has set in motion a move to fully roll out the Electronic Government Procurement (e-GP) system across all Procuring Entities within both the National and County Governments.

This is part of ongoing Public Finance Management Reforms, aimed at enhancing efficiency, transparency, and value for money in public procurement.

The implementation of the e-GP system follows a directive by the President during the State of the Nation address delivered on 21st November 2024.

In his speech, the President directed that the National Treasury ensures the complete deployment of the e-GP system by the first quarter of 2025.

The adoption of the e-GP system will bring significant improvements in the public procurement process, including Reduced procurement costs for goods, works and services, greater transparency and accountability and faster procurement cycle times.

It will also bring about enhanced confidentiality and integrity of transactions, standardization of procurement processes across government, improved data management for planning, monitoring, and evaluation and reporting.

All suppliers, contractors, and consultants intending to engage with government procurement processes must self-register on the e-GP portal at: www.egpkenya.go.ke Supplier registration on the portal is a compulsory requirement for partaking in government business transactions.

 According to the World Bank’s 2020 Public Expenditure Review, the country stands to save over Sh85.9 billion annually, which is equivalent to 0.9 per cent of the Gross Domestic Product (GDP by improving procurement efficiency through the e-GP platform.

Electronic Government Procurement System Or e-GP System therefore opens a new chapter in the way procurement will be done in the country.

The electronic commerce service owned and operated by The National Treasury will serve as the central portal for all procurement information and activities of the government of Kenya as envisaged in the Public Procurement and Asset Disposal (PPADA).

By Mabel Keya-Shikuku

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