A Digital Overhaul of Public Spending

In a landmark move to digitize public finance and enhance accountability, the Kenyan government mandated the full rollout of the electronic Government Procurement (e-GP) system starting Wednesday, July 1, 2025. The directive, issued by the Public Procurement Regulatory Authority (PPRA), requires all national and county government entities to conduct their procurement processes exclusively through the new digital platform. This transition is a key component of President William Ruto's digital transformation agenda, aimed at tackling inefficiency and corruption in a sector that accounts for 60% of the national budget.

The system was officially launched on Monday, April 7, 2025, by Treasury Cabinet Secretary John Mbadi, who emphasized that the reform is a critical step towards transparency and value for money in public spending. The move followed a directive from President Ruto during his State of the Nation address on Thursday, November 21, 2024, to have the system fully operational by the first quarter of 2025. Proponents argue the e-GP system will create a verifiable digital trail for every transaction, potentially saving Kenya over KES 85.9 billion annually, according to a 2020 World Bank Public Expenditure Review. The Ethics and Anti-Corruption Commission (EACC) has also endorsed the system, noting that procurement-related issues account for nearly 70% of annual losses to corruption.

Implementation Challenges and Resistance

Despite its ambitious goals, the e-GP rollout has been fraught with challenges. Four months after its mandatory implementation, reports emerged in October 2025 that not a single contract had been successfully awarded through the system. This has raised fears of significant delays in the delivery of critical public goods and services. Technical glitches and operational bottlenecks have been widely reported, with some government agencies, particularly in the roads sector like the Kenya Rural Roads Authority (KeRRA), being permitted to revert to manual procurement to avoid project paralysis.

The transition has faced staunch resistance, most notably from the Council of Governors (CoG), which filed a High Court petition to suspend the directive. Governors argue the rollout was rushed without adequate consultation, training, or consideration for the unique challenges faced by county governments, such as limited internet connectivity. CoG Chair Ahmed Abdullahi stated that while counties are not against digitization, the system's poor implementation has stalled essential services, leaving hospitals with medicine shortages and threatening agricultural timelines. This has created a standoff between the National Treasury, which insists on full compliance, and county governments that feel the system undermines devolution.

The Path Forward: Balancing Digitization with Practicality

The government has acknowledged the initial difficulties. To facilitate the transition, the National Treasury has been conducting nationwide training for suppliers and public entities, establishing help desks, and holding weekly webinars. The system is designed to integrate with other key government platforms like the Kenya Revenue Authority's iTax and the Integrated Financial Management Information System (IFMIS) to streamline processes.

However, the implementation has also faced legal and legislative hurdles. A National Assembly committee recommended the nullification of Treasury circulars related to the e-GP system, citing violations of the constitution and the Public Procurement and Disposal Act. This legislative pushback, combined with the legal challenges from governors, highlights the complex political and logistical landscape the reform must navigate.

The World Bank has made the successful implementation of the e-GP system a condition for future loans, underscoring the international pressure for these reforms. As Kenya moves forward, the success of this ambitious digital overhaul will depend on a collaborative approach that addresses the technical shortcomings, provides continuous capacity building, and finds a workable balance between centralized digital control and the autonomy of devolved government units. The coming months will be critical in determining whether the e-GP revolution can overcome its turbulent start to deliver on its promise of a more transparent and accountable Kenya.