A government initiative to digitize all public procurement has hit a wall, triggering a cascade of delays that have left county services crippled and billions of shillings in development projects in limbo. A damning report by the Parliamentary Budget Office (PBO) released this week warns that the slow and troubled uptake of the electronic Government Procurement (e-GP) system has significantly slowed down critical procurement cycles across the country.

The system, rolled out with the promise of enhancing transparency and saving taxpayers' money, is now at the center of a firestorm. For ordinary Kenyans, the fallout is tangible: stalled road constructions, medicine shortages in local health centers, and unpaid bills for small and medium-sized businesses that supply county governments. The very projects meant to put food on the table and improve lives are the ones grinding to a halt.

Counties Sound the Alarm

The Council of Governors (CoG) has been the most vocal critic, describing the mandatory rollout as “hasty” and “disastrous.” CoG Chairperson Ahmed Abdullahi noted that the transition has created widespread disruptions, leaving some counties unable to purchase critical supplies like fuel for garbage collection or even pay salaries on time. “This quarter has been disastrous. We have not been able to spend money at all on account of the challenges that we've had,” Abdullahi stated, warning that essential services are now under threat.

The real-world impact of this digital paralysis is starkly illustrated by recent data:

• A report by the Controller of Budget revealed that 20 counties recorded zero expenditure on development in the first quarter of the 2025/2026 financial year.
• This represents a paltry 2% absorption rate of the annual development budget, a significant decline from the previous year.
• Auditor-General reports have previously highlighted billions in stalled projects across various counties, a situation exacerbated by the current procurement freeze.

A Standoff Over a System

The National Treasury, however, maintains that the e-GP system is a game-changer in the fight against corruption. Treasury Cabinet Secretary John Mbadi has argued that the platform is essential to seal loopholes that have for years enabled the misuse of public funds, estimating it could save the country billions. President William Ruto has echoed this sentiment, suggesting resistance to the system is driven by officials who benefited from the old, opaque manual processes.

This standoff has led to both legal and legislative challenges. The High Court issued a temporary suspension of the mandatory e-GP directive following a petition by governors. Concurrently, a National Assembly committee recommended the annulment of Treasury circulars enforcing the system, arguing they contravene existing laws that permit both manual and electronic procurement.

While the national government allocated KES 700 million (approx. $5.4 million USD) to facilitate the rollout, governors insist the implementation was rushed without adequate consultation or training. “If it is not working, it is not working. Don't push it down our throats,” remarked one governor, capturing the frustration of county leaders who feel they are being forced to use a dysfunctional system.

As the impasse continues, the promise of a transparent, efficient digital future remains stuck in bureaucratic gridlock. The ultimate cost, analysts warn, is being paid by citizens waiting for services and contractors whose livelihoods depend on a functioning public procurement system.