National Assembly nullifies additional Treasury directives on eGPS enforcement

A parliamentary committee has invalidated two more directives supporting the enforcement of the Electronic Procurement System (eGPS), intensifying Parliament’s opposition to the National Treasury’s push for mandatory digital procurement.

The National Assembly Committee on Implementation recommended the annulment of two circulars after the House had already voted to nullify Circular No. 04 of 2025, issued on August 12, which required all public entities to adopt eGPS for procurement.

The Treasury had issued a circular on July 23, stating that only contracts reported to the Public Procurement Regulatory Authority (PPRA) would be approved for payment. However, the High Court suspended the mandatory use of eGPS following a petition filed by the Council of Governors and four other parties. Justice Bahati Mwamuye halted the requirement pending the outcome of the petition.

The committee now seeks to annul Circular Ref. No. NT/PPD/1/3/14 Vol VI, issued on March 26, 2025, by the Cabinet Secretary for the National Treasury and Economic Planning, which directed accounting officers to transition to eGPS effective July 1, and Circular No. OP/CAB.6/2A, dated June 5, 2025, from the Head of Public Service, which reiterated that all procuring entities must onboard eGPS, a directive that led to the issuance of Circular No. 04 of 2025.

“The committee concurs with the annulment of Circular No. 04 of 2025 of August 12, 2025, by the House. Further, the committee recommends that the House declare the above circulars (a & b) a nullity, as they create ultra vires provisions in contravention of Article 227 of the Constitution, and Section 77(1) of the Public Procurement and Assets Disposal Act,” Budalang’i MP Raphael Wanjala said in his report to the House.

The committee emphasised that funds appropriated for the 2024/25 financial year had already been disbursed and directed that project implementation continue under the approved procurement plans.

“The committee recommends that the implementation of projects for the financial year 2024/25 proceeds according to the approved procurement plans, in strict compliance with the provisions of Section 77(1) of the Public Procurement and Asset Disposal Act,” reads the report.

“This section permits the use of both manual and electronic procurement methods, ensuring flexibility and efficiency in procurement.”

Earlier, on August 19, the National Assembly adopted the report of the Committee on Delegated Legislation, annulling the PPRA’s Circular No. 04 of 2025. The Implementation Committee, chaired by Ainabkoi MP Samuel Chepkonga, noted that the directive mandating eGPS for all public procuring entities attempted to bypass parliamentary approval and violated multiple constitutional provisions.

It cited breaches of Articles 2(1) and (2), 10, 27(2), 94(5), and 227 of the Constitution, which cover the supremacy of the Constitution, national values and principles of governance, public participation, transparency, accountability, equality and fair contracting for goods and services.

In its follow-up, the committee observed that two other state directives required annulment as well.

“That by a Resolution of the House through adoption of the Report of the Committee on Delegated Legislation on its consideration of the Public Procurement Regulatory Authority Circular on the Enforcement of Compliance with the Mandatory Use of eGPS by all Public Procuring Entities (Circular No. 04 of 2025),” Wanjala said in the report.

The committee also highlighted that the annulment of Circular No. 04 of 2025 did not prevent enforcement of eGPS through executive directives.

“The annulment of Circular No. 04 of 2025 of August 12, 2025, by the House did not take cognisance of the fact that enforcement of compliance with the mandatory use of eGPS by all public procuring entities could still proceed by way of a Cabinet directive in its fourth meeting of June 24, 2025, stating that eGPS shall be the primary means of procurement in all government transactions,” Wanjala added.

“Further, the House did not annul two previous circulars: Circular Ref. No. NT/PPD/1/3/14 Vol VI by the Cabinet Secretary, the National Treasury and Economic Planning dated March 26, 2025, directing accounting officers to transition to eGPS with effect from July 1, 2025; and Circular No. OP/CAB.6/2A dated June 5, 2025, from the Head of Public Service reiterating the need for all Procuring Entities to onboard into eGPS.”

Other Topics To Read

• National
• Public Procurement Regulatory Authority
• e-procurement system
• electronic government procurement
• e-government procurement
• National Assembly Committee on Implementation
• Electronic Procurement System
• National Assembly nullifies additional Treasury directives on eGPS enforcement
• Headlines

The eGPS was launched on April 7 by Treasury Cabinet Secretary John Mbadi as part of the government’s effort to improve efficiency, accountability, and value for money in public spending. The system was intended to ensure fair, transparent, competitive and cost-effective procurement. Its rollout followed a directive from President William Ruto in his November 21, 2024 State of the Nation Address, instructing the Treasury to fully implement eGPS by the first quarter of 2025.

Under the circulars, only procurements processed through the eGPS platform were to be sanctioned and paid, a requirement that has now been suspended pending parliamentary and judicial review.