High Court ruling puts brakes on National Treasury’s mandatory e-procurement directive
In a ruling delivered on September 8, 2025, Justice Bahati Mwamuye ordered that the contested Treasury circular be stayed until the case is heard and determined.
The High Court in Nairobi has temporarily suspended a decision by National Treasury Cabinet Secretary John Mbadi over the handling of public procurement processes.
In a ruling delivered on September 8, 2025, Justice Bahati Mwamuye ordered that the contested Treasury circular be stayed until the case is heard and determined.
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"A conservatory order be and is hereby issued staying the decision of the Cabinet Secretary, National Treasury & Economic Planning, and the Public Procurement Regulatory Authority's Circular No. E04/2025, which required the mandatory use of the Electronic Government Procurement System (e-GPS) by all Public Procurement Entities," Justice Mwamuye directed.
The court ruled that, until further orders are issued, public procurement entities should not be compelled to exclusively use the e-GPS platform. Instead, they are required to comply with Section 77(1) of the Public Procurement and Disposal Act, which allows tender documents to be submitted in both electronic and manual form.
Petition
The conservatory orders were issued in a petition filed by Paul Ngweywo Kirui, International Legal Consultancy Group Limited, and others against the National Treasury & Economic Planning, the Public Procurement Regulatory Authority (PPRA), and other respondents.
The petitioners argue that the Treasury decision undermines the mandate of procuring entities and violates provisions of the Public Procurement and Asset Disposal Act.
Justice Mwamuye further directed all state entities to comply strictly with the relevant procurement laws until the case is concluded. The Treasury CS was also ordered to ensure adherence to statutory provisions in all procurement processes.
The respondents and interested parties have 15 days to file their responses, with the hearing scheduled for October 14, 2025.
The case comes amid tensions between President William Ruto, CS Mbadi, and the Council of Governors over the rollout of the e-GPS system.
According to the CS, some counties and officials in ministries, state departments, and agencies (MDAs) have attempted to secretly reintroduce manual procurement despite directives requiring all entities to migrate to the digital platform.
The outcome of the case is expected to set a key precedent on the Treasury’s authority in regulating procurement and the independence of procuring entities.
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