Governors Clash with Treasury Over E-Procurement Rollout

Governors have faulted the electronic procurement system (e-GP) and are calling on the National Treasury to immediately withdraw the circular directing counties to implement it.

Council of Governors Chairman Ahmed Abdulahi, in a statement on Monday after an extra-ordinary council meeting on human resource management in the health sector and the roll-out of e-procurement, said the system is marred with inconsistencies and has disrupted service delivery in counties.

He argued that only three counties participated in the pilot phase, yet the system was enforced nationally before addressing the gaps identified.

He further said the system undermines the distinct role of county governments as protected in the Constitution.
“We therefore call on the National Treasury to immediately withdraw the circular directing the counties to implement the e-GP until proper consultations, legal alignment, and capacity-building are undertaken,” the statement read.

However, President William Ruto has maintained that there will be no turning back in the government’s plan to digitize procurement.

Speaking on Sunday after a church service at St Peter’s ACK Cathedral in Siaya County, the President warned officials resisting the transition to the electronic system to either comply or resign.
“I have noticed resistance from procurement and accounting officers who are used to the old ways. Some try to block or delay implementation, but we will not allow that. We are committed to rolling out e-procurement fully. There is no turning back. Any official who is not willing to work with us under the e-procurement system can as well leave the government and look for another job,” he said.

Ruto said corruption and inefficiencies under the old procurement system must end.
“The old procurement system is full of loopholes. Many people have taken advantage, inflating prices and engaging in corruption. A product that costs Sh2 could be bought by the government for Sh10. That is what we are trying to stop. We are introducing e-procurement so that every transaction is transparent, documented and accountable,” he added.

The e-GP system, officially launched on April 7, 2025, is set to become the exclusive platform for procurement across ministries, departments, and government agencies in the 2025/26 financial year. According to the Treasury, it could save the country up to Sh50 billion annually by curbing procurement-related fraud.

The platform digitizes the entire procurement process—from planning and bidding to contract management and payment. Suppliers can register online, submit bids, and track tenders. It is also linked to key government databases, including the Kenya Revenue Authority’s iTax, IFMIS, the Business Registration Service, and the Integrated Population Registration System.

National Treasury Cabinet Secretary John Mbadi has defended the rollout, saying e-procurement will lower the cost of goods and services, increase transparency, and improve efficiency.

Earlier this year, the Treasury began preparations for the full rollout of the system from July 1, 2025. So far, 1,285 procuring entities and 7,637 suppliers have registered, while hundreds of trainers have been equipped to support the transition. Thirty-one counties have also submitted their budgets for validation and upload onto IFMIS and the e-GP system.

Treasury projects that the country could save up to Sh150 billion annually once the system is fully operational.