Treasury Confirms Full Rollout Of e-Procurement System As Governors Raise Concerns

The National Treasury has confirmed that all ministries, state departments, independent commissions, and offices have been registered in the electronic government procurement (e-GP) system, setting the stage for full digital processing of government tenders.

In a circular dated September 1, 2025, addressed to principal secretaries and accounting officers, the Treasury said all government budgets have been uploaded into the platform as a prerequisite for procurement planning.

“The purpose of the circular therefore is to request all accounting officers to undertake validation of budgets uploaded in the e-GP platform to ensure there are no discrepancies between the approved budget and the uploaded budget,” the notice read.

The Treasury said validation must be carried out for every budget line to pave the way for procurement planning and other steps in the procurement cycle.

But governors have opposed the directive, saying the system is riddled with inconsistencies and is disrupting service delivery in counties.

Council of Governors (CoG) chairman Ahmed Abdulahi said on Monday that only three counties participated in the pilot phase, yet the Treasury rushed to enforce the system nationally before addressing gaps identified.

He also argued that the platform undermines the 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,” Abdulahi said.

President William Ruto has dismissed calls to suspend the rollout, insisting the government will not back down from its plan to digitize procurement.

Speaking on Sunday after a church service in Siaya County, the President said officials resisting the new system must either comply or leave government.

“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. 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.

Dr. Ruto said the old procurement system was riddled with corruption and inefficiencies.

“The old system is full of loopholes. A product that costs Sh2 could be bought by the government for Sh10. We are introducing e-procurement so that every transaction is transparent, documented, and accountable,” he added.

The e-GP system was officially launched on April 7, 2025, and is expected to become the sole procurement platform across all government entities in the 2025/26 financial year.

Treasury Cabinet Secretary John Mbadi said the platform will cut costs, reduce corruption, and enhance efficiency.

According to the Treasury, e-procurement could save the country up to Sh50 billion annually by curbing tender-related fraud, and as much as Sh150 billion once fully operational.

The system digitizes the entire procurement process—from planning and bidding to contract management and payment. It is linked to other government databases, including the Kenya Revenue Authority’s iTax, IFMIS, the Business Registration Service, and the Integrated Population Registration System.

So far, 1,285 procuring entities and 7,637 suppliers have registered on the platform. Thirty-one counties have also submitted their budgets for validation, while hundreds of trainers have been deployed to support the transition.