New e-procurement system to fight graft, save Kenyans Sh50bn annually - Treasury
The E-GP system, launched on Monday, is designed to automate and streamline public procurement processes. It enables government agencies to handle procurement activities electronically, thereby improving transparency, efficiency, and accountability.
A total of Sh50 billion will be saved by the government as it transitions to the Electronic Government Procurement (E-GP) System, starting July 1, 2025.
All Ministries, Departments and Government Agencies (MDAs) will be required to conduct procurement exclusively through the E-GP platform from the 2025/26 financial year.
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According to National Treasury Cabinet Secretary John Mbadi, the move is part of a broader strategy to cut wasteful expenditure and curb corruption in public procurement. He said the savings will be redirected to critical sectors, including education, health and infrastructure.
“We are confident that the new procurement process will save the government more than Sh50 billion, funds that can now be channelled to priority sectors,” Mbadi said.
He further explained that the digital platform will also lock out procurement cartels that have been manipulating government tenders. “Through this system, the registration will be done online, the budget for a particular tender will also be online, the entire tendering process will also be online.”
“In the entire process, there will be no human interaction, a move we expect will eliminate corruption in the entire government procurement system.”
The E-GP system, launched on Monday, is designed to automate and streamline public procurement processes. It enables government agencies to handle procurement activities electronically, thereby improving transparency, efficiency, and accountability.
Mbadi said a number of government agencies, including the Kenya Electricity Generating Company PLC (KenGen), have been selected to pilot the system ahead of the full rollout. Additionally, three counties, including Busia, Elgeyo Marakwet and Makueni, have volunteered to participate in the trial phase.
“There will be no more monkey business that we have had before where people pluck procurement papers of other companies so that they can be disqualified on technicalities. You will be required to tender online, the bid will be done online, and the opening of the tender will also be online in the presence of all bidders,” the CS said.
He noted that the new system will enhance transparency by allowing bidders to review the evaluation process in real time.
“Through this system, one will be able to go back to the system and trace why he was disqualified and the competitor picked because the evaluation of the tenders will be done live online where all parties will be present,” he said.
He noted that once the system becomes fully operational, government payments will only be made to suppliers who have gone through the online tendering process.
“We will only pay those who have gone through the system. All government agencies will be required to be fully compliant as of July 2025,” Mbadi said.
He also pointed out that the system will curb cases where counties requisition funds to pay suppliers, only to pay completely different individuals who never offered any service.
“Through the system, you will be able to trace who has been paid, making it easy to know who offered the service and who has been paid because payment will be done through the Integrated Financial Management Information System (IFMIS),” he said.
The CS further criticised the current procurement setup, saying it is largely manual and riddled with corruption.
The E-GP system will digitise and automate all public procurement activities, from planning to payment. Suppliers will be required to register on the platform, submit bids online, track tender status and manage contracts digitally.
To enhance compliance and reduce fraud, the system will be integrated with key government databases, including the Kenya Revenue Authority’s iTax platform, IFMIS, the Business Registration Service, and the Integrated Population Registration System.
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