Controller of Budget urges faster adoption of e-GPS for public projects
The Deputy Controller of Budget addressed borrowing patterns, cautioning that domestic borrowing can crowd out local businesses.
Government accounting officers have been called upon to accelerate the use of the electronic Government Procurement System to ensure the timely and efficient implementation of public projects.
The Deputy Controller of Budget, Stephen Masha, told the Budget and Appropriations Committee in Machakos on Friday that delays in adopting the system have hampered the proper use of funds in the early months of the financial year.
More To Read
- Revenue gaps, budget misalignments hurting service delivery, warns Auditor General
- Kenya Power awards Sh3.5 billion in tenders to youth, women and PWDs
- Cabinet backs data-driven plan to tame infrastructure overpricing
- PS Belio Kipsang urges use of e-Citizen, warns against cash payments
- MPs call for withdrawal of Treasury, civil service circulars on e-GPS system
- Bursary battle deepens as counties push for full control over education
Masha said embracing the e-GPS fully will help promote fairness, transparency, and better value for money in public spending.
During his appearance before the committee, chaired by Samuel Atandi, Masha explained that the slow uptake of the system had been one of the reasons for low absorption of funds in the first quarter of FY 2025/26.
“The e-GPS has posed challenges to the procurement process due to a learning curve, resistance from some users, integration issues with internal systems and vendor-related problems,” he noted.
Committee members pressed the Deputy COB on several issues, including approvals under Article 223, exemptions granted to certain government agencies from using the e-GPS, and the growing pending bills at the county level despite full fund releases from the National Treasury.
MPs also sought explanations on whether development funds are sometimes redirected to cover recurrent costs, and how the coordination between the Treasury, the Central Bank, and the Controller of Budget affects fund disbursement.
Responding, Masha defended the coordination system, saying it has prevented failed transactions and ensured funds are properly managed.
On the delayed county payments, he said late disbursement of final tranches left counties with limited time to process payments to suppliers.
The Deputy Controller of Budget also addressed borrowing patterns, cautioning that domestic borrowing can crowd out local businesses.
He advised the committee to seek reasons from the National Treasury for the continued reliance on internal borrowing.
He urged all institutions to work together to manage public debt sustainably, warning that unchecked debt growth could lead to default with serious economic consequences.
Masha further called for better planning during budget preparation, prioritising essential services, aligning spending with operational realities, and ensuring borrowing is directed toward development projects that are ready for implementation and have measurable economic returns.
The Budget and Appropriations Committee will now include the submissions from the Controller of Budget’s office, along with reports from the National Treasury and Auditor-General.
This review will help strengthen Parliament’s oversight role and ensure public funds are properly utilised.
Top Stories Today
