MPs slam Ruto’s Sh3bn e-procurement plan amid economic strain, tech overspend fears

MPs slam Ruto’s Sh3bn e-procurement plan amid economic strain, tech overspend fears

MPs challenged the rationale behind spending billions of shillings on a new system when the current one is still in use and consumes Sh1.2 billion annually in maintenance.

President William Ruto’s plan to implement a new Sh3 billion e-procurement system has triggered backlash in Parliament, with MPs questioning the necessity of the move while the country continues to grapple with financial strain.

During a session with the National Assembly Finance Committee, Treasury Principal Secretary Chris Kiptoo revealed that the new platform, currently being piloted in 10 state agencies, will gradually replace parts of the existing Integrated Financial Management Information System (IFMIS).

He said more government entities will join the system starting in July.

Kiptoo defended the decision, saying IFMIS has limited capability when it comes to e-procurement.

“We aim to streamline procurement, having realised it is where we have a problem. The long-term impact outweighs the initial cost,” he said as quoted by the Daily Nation.

However, MPs challenged the rationale behind spending billions of shillings on a new system when the current one is still in use and consumes Sh1.2 billion annually in maintenance.

“Why do we procure a new system when we have spent a lot of money on IFMIS? Isn’t this an expensive venture? Isn’t the customisation expensive?” asked Kesses MP Julius Ruto, questioning the logic of the switch.

“The amounts that have gone into this system are colossal. I hope we are not getting into another challenging one," Finance Committee Chair and Molo MP Kuria Kimani said.

Despite Kiptoo’s assurance that the new system is necessary to fix persistent procurement flaws and tackle corruption, the committee members expressed deep reservations about the spending priorities.

MPs from across the political divide demanded a clearer explanation, raising fears of yet another costly digital project with little to show for it.

Only Kitui Central MP David Mboni stood in support of the new system, stating it was long overdue.

The concerns mirror broader unease over recent government technology deals that critics say hand control of critical public systems to private vendors.

These include the e-visa system, e-Citizen platform, and the newly launched Social Health Authority (SHA), all of which have come under scrutiny for opaque contracts.

Auditor-General Nancy Gathungu has repeatedly flagged the risks, warning that these arrangements expose the government to fraud, data breaches, and service disruptions.

The education sector has seen a similar trend.

Just days before the finance committee meeting, the Education Ministry announced plans to replace the National Education Management Information System (Nemis) with a new platform, Kenya Education Management Information System (Kemis), prompting fears of another costly cycle of tech replacements.

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