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Treasury CS Mbadi announces end of manual procurement with full shift to eGP system

All ministries, departments and agencies will be required to process procurement exclusively through the Electronic Government Procurement system starting.

By Margaret Wanjiru

From July 1, 2026, all ministries, departments, agencies, and other public entities will be required to carry out procurement exclusively through the Electronic Government Procurement (eGP) system, Treasury Cabinet Secretary John Mbadi announced while presenting the 2026/27 Budget Statement in the National Assembly.

The directive marks a major step in Kenya’s ongoing push to digitise public finance management and strengthen accountability in government spending. It effectively removes earlier exemptions that had allowed some institutions to continue using manual or alternative procurement systems during the transition period.

Mbadi said the policy is intended to enhance transparency, improve efficiency, and close procurement loopholes that have historically led to wastage of public resources and inflated government contracts.

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Under the new framework, all procurement processes across government entities will be handled through the eGP platform, creating a centralised digital record from tender advertisement and bidding to contract awards and payments.

The announcement is part of wider reforms in the 2026/27 budget aimed at strengthening public expenditure management, improving value for money, and advancing the government’s digital transformation agenda.

The eGP platform, which has been rolled out in phases across various government institutions, is designed to cut paperwork, speed up procurement processes, and strengthen oversight by enabling regulators and auditors to monitor transactions electronically.

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While the system is already in use in several agencies, some institutions had been granted temporary exemptions as they prepared to migrate their procurement operations onto the platform. The latest directive now signals the end of that transition phase, making digital procurement compulsory across the public sector.

Analysts say full implementation of the system could significantly improve transparency in procurement, an area long associated with inefficiencies and corruption risks.

With procurement data centralised, the government is expected to gain improved visibility into spending patterns, supplier performance, and contract management.

The mandatory rollout also aligns with broader efforts to expand digital public services, improve service delivery, and leverage technology to strengthen governance.

With the July 1 deadline set, all government agencies are expected to complete migration to the platform before the start of the 2026/27 financial year, marking one of the most far-reaching procurement reforms in recent years.

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