The Kenyan government has officially launched a nationwide electronic Government Procurement (e-GP) system, a move intended to radically overhaul how public funds are spent by moving the entire procurement process online. The full rollout, which commenced on July 1, 2025, mandates all national and county government entities to conduct their procurement exclusively through the new digital platform. This transition is a cornerstone of President William Ruto's digital transformation agenda and aims to enhance transparency, efficiency, and accountability in a sector that has long been plagued by corruption and mismanagement.

The National Treasury, under Cabinet Secretary John Mbadi Ng'ongo, has championed the e-GP system as a critical tool for fiscal discipline. The platform digitizes every stage of the procurement cycle, from tender advertisement and submission to evaluation, award, and payment. Proponents argue that this will create a verifiable digital trail for every transaction, significantly reducing opportunities for graft and ensuring value for money in public spending. According to a 2020 World Bank Public Expenditure Review, improving procurement efficiency through the e-GP platform could save Kenya over KES 85.9 billion annually, equivalent to 0.9% of the country's GDP. The Ethics and Anti-Corruption Commission (EACC) has also lauded the system as a "game changer," noting that nearly 70% of the estimated KES 600 billion lost to corruption annually is linked to procurement.

Implementation and Early Impact

The directive to transition to the e-GP system was issued by the Public Procurement Regulatory Authority (PPRA), which suspended all new tenders and contract awards for the 2025/2026 financial year pending the system's full implementation. Within months of its launch, over 1,500 procuring entities and more than 26,000 suppliers had been onboarded onto the platform. To facilitate the transition, the National Treasury has partnered with the Kenya School of Government to provide nationwide training for both government entities and suppliers, supplemented by help desks and weekly webinars. The system is integrated with other key government platforms like the Kenya Revenue Authority's iTax, the Integrated Financial Management Information System (IFMIS), and the Business Registration Service to streamline verification processes.

Challenges and Resistance

Despite the optimistic outlook, the rollout has not been without its challenges and has faced significant pushback. The Council of Governors (CoG) has been a vocal critic, arguing that the implementation was rushed and lacked adequate consultation with county governments. Governors have reported that technical glitches and operational bottlenecks have stalled essential services, with some counties unable to process tenders due to delays in budget information being uploaded from IFMIS to the e-GP system. This has reportedly led to understocked hospitals and delays in procuring agricultural supplies.

Some Members of Parliament have also expressed skepticism. Tetu MP Geoffrey Wandeto has raised concerns that the system could become a new frontier for sophisticated corruption, citing the persistent challenges faced by the IFMIS. He argued for a more gradual rollout to allow for public education and to address potential gaps, such as internet connectivity in remote areas. These concerns highlight the complexities of implementing such a large-scale digital reform in a decentralized governance structure.

The Way Forward

The successful implementation of the e-GP system is a key condition in Kenya's financing arrangements with international partners like the International Monetary Fund (IMF) and the World Bank, who have supported the reform as a measure to enhance fiscal governance and reduce debt vulnerabilities. The National Treasury has remained resolute, with CS Mbadi stating that resistance to the reform will not be tolerated and that no government budget will be approved unless it is processed through the e-GP system.

For the system to succeed, stakeholders emphasize the need for continuous collaborative engagement between the National Treasury, county governments, and suppliers. Ongoing capacity building for procurement officers and ensuring the system's stability are also deemed critical. As Kenya navigates this digital transition, the e-GP system represents a significant test of the government's commitment to fighting corruption and modernizing public financial management. Its success will depend on effectively addressing the technical and political challenges that have emerged during its initial implementation phase.