Government misses e-procurement deadline, extends implementation to July
Despite mounting pressure from President William Ruto for state agencies to implement the e-procurement system by March 2025, the National Treasury has again postponed its rollout to July 1, 2025.
National Treasury Cabinet Secretary John Mbadi said the system will first undergo a three-month trial before becoming fully operational, citing the need for a phased transition. The system aims to fully digitise the tendering process, enabling the online initiation, evaluation and awarding of government contracts.
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The delay marks yet another setback in the government’s efforts to digitise procurement processes, a reform that has been in the works for nearly a decade.
President Ruto had previously expressed frustration over the sluggish implementation of the e-procurement system (e-GP), which is projected to cost approximately Sh5.05 billion upon completion.
“The National Treasury has been dragging its feet in the implementation of an e-procurement system for nearly 10 years,” the President said during his State of the Nation Address on November 21, 2024.
“Today, I direct the National Treasury to roll out the e-procurement system by the end of the first quarter of 2025 and ensure that, going forward, only procurement undertaken through this system is sanctioned.”
Transparency in government contracts
The e-GP system, aimed at enhancing transparency in government contracting, was initially scheduled for implementation in July 2024. However, budget constraints delayed its rollout, prompting Treasury to seek additional funding.
In January 2024, the Treasury informed the International Monetary Fund (IMF) that the system was being piloted within 12 ministries and state departments.
The IMF has been a key advocate for the reform, pushing for digital procurement to curb corruption and ensure greater accountability in public spending.
The e-GP system is designed to facilitate electronic tendering and asset sales, reducing human interaction and limiting opportunities for fraud.
Corruption concerns
Concerns over corruption in Kenya’s procurement sector have also been raised internationally. The US has repeatedly criticised bribery demands at both national and county levels.
“Corruption remains a substantial barrier to doing business in Kenya. US firms routinely report direct requests for bribes from all levels of the Kenyan government,” former US Trade Representative Katherine Tai said in the 2024 National Trade Estimate Report on Foreign Trade Barriers.
Despite the delays in tender automation, the Treasury has already migrated claims payments to online platforms, disrupting networks that have long exploited suppliers through delayed approvals to solicit bribes.
The upgraded national Integrated Financial Management Information System (Ifmis) now handles purchase orders and invoices digitally, streamlining payments to suppliers and improving transparency.
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