Kisumu: Public Investments and Assets Management PS Cyrell Odede has stated that the government will not reverse the newly implemented e-procurement law, despite the challenges counties are encountering in uploading their budgets to the Electronic Government Procurement (e-GP) System. Odede emphasized that the government will not revert to the manual procurement system, which was plagued by corruption.
According to Kenya News Agency, Odede mentioned that the government anticipates saving up to Sh.250 billion annually with the new system, describing the manual procurement process as the root of numerous scandals. This statement was made during the closing ceremony of Counties’ Sensitisation on Asset Management and the rollout of the Integrated Financial Information Management Systems (IFMIS) Asset/Inventory Module in Kisumu.
Odede disclosed that over 30 budgets from devolved units had been uploaded by Friday, despite the ongoing difficulties. The National Treasury team is working diligently to ensure all county budgets are uploaded. Counties have expressed concerns over delays in uploading their budgets, with some governors threatening to revert to the manual system.
On Thursday, Parliament annulled the directive for counties to submit budgets through the e-GP System due to these challenges, which have reportedly hindered activities. However, Odede dismissed this move as inconsequential, asserting that the law mandates a complete transition by the end of FY 2026/2027.
The National Treasury launched Phase I of the e-GP System on 7th April 2025, mandating exclusive use of the system for all government procurement processes starting 1st July 2025. National Treasury and Economic Planning CS John Mbadi launched the e-GP system to enhance efficiency, accountability, and value for money in public funds usage, promoting fair and transparent procurement.
This initiative is part of ongoing Public Finance Management Reforms aimed at improving efficiency and transparency in public procurement. The implementation follows a presidential directive from the State of the Nation address on 21st November 2024, requiring the system’s full deployment by the first quarter of 2025.
The e-GP system is expected to reduce procurement costs, increase transparency, and accelerate procurement cycles. It will also standardize procurement processes, improve data management, and enhance confidentiality and integrity of transactions. Suppliers, contractors, and consultants must register on the e-GP portal to engage in government procurement processes.
According to the World Bank’s 2020 Public Expenditure Review, the country could save over Sh85.9 billion annually, equivalent to 0.9% of the GDP, by improving procurement efficiency through the e-GP platform. The e-GP system, managed by the National Treasury, will centralize procurement information and activities as outlined in the Public Procurement and Asset Disposal (PPADA).