MPs reject Treasury circular on mandatory e-GPS use
Treasury Cabinet Secretary John Mbadi had launched the e-GPS system on April 7, 2025, with the aim of improving accountability, efficiency, and value for money in government procurement.
The National Assembly has overturned a Treasury directive that sought to make the electronic Government Procurement System (e-GPS) the only method for processing government tenders, declaring the move unconstitutional and outside the law.
On Tuesday evening, the National Assembly adopted the report from the Committee on Delegated Legislation, annulling the Public Procurement Regulatory Authority Circular No. 04/2025 in full.
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The motion was seconded by the Leader of Minority, Junet Mohamed, paving the way for unanimous approval by MPs.
The committee, led by Ainabkoi MP Samuel Chepkonga, noted that the circular attempted to bypass parliamentary oversight by imposing new rules on procurement without legal backing.
It concluded that the directive violated Section 77 of the Public Procurement and Asset Disposal Act, which allows government entities to submit tenders either manually or electronically.
The report further highlighted that the circular conflicted with several constitutional provisions, including Articles 2(1) and (2), 10, 27(2), 94(5), and 227.
These cover the supremacy of the Constitution, national values and principles of governance, equality and enjoyment of fundamental rights, the exclusive role of Parliament in lawmaking, and the requirement that procurement processes remain fair, competitive, transparent, and cost-effective.
“The Circular is in contravention of sections 9 and 77 of the Public Procurement and Asset Disposal Act, Cap. 412C relating to the function of the Authority which do not extend to creating binding obligations and the recognition that tender submissions may be made in either manual or electronic form, and contravention of sections 2, 6, 11, 13, 22 and 24 of the Statutory Instruments Act, Cap 2A relating to interpretation of a statutory instrument, submission of a regulatory impact statement on each statutory instrument, requirement for publication and tabling of a statutory instrument before Parliament, and exercise of powers in making statutory instruments,” the committee said.
Treasury Cabinet Secretary John Mbadi had launched the e-GPS system on April 7, 2025, with the aim of improving accountability, efficiency, and value for money in government procurement.
The platform was designed to strengthen transparency, fairness, and competitiveness, in line with directives from President William Ruto during his November 2024 State of the Nation Address, which called for full rollout by the first quarter of 2025.
Under the annulled circular, only tenders submitted through the e-GPS platform would have been approved for payment, and all existing contracts had to be registered with the PPRA.
Junet Mohamed, while seconding the motion to annul, said the circular was legally invalid.
“If you want to use electronic means, you change the law. You can’t change the law through a circular. The circular is just a piece of paper,” he said.
“This reminds me of a circular issued by the former Central Bank of Kenya governor that when you want to withdraw over Sh1 million, you have to explain. This is a warning to the Executive that the only body the Constitution has given power to make law is Parliament,” he added.
He called on MPs to reject the circular immediately so that procuring entities could continue using manual systems without restrictions.
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