Government Rolls Out E-Procurement System to Save Sh50 Billion Annually
The Kenyan government has unveiled a groundbreaking shift in public procurement with the official rollout of the Electronic Government Procurement (E-GP) System. The system, set to be fully implemented by July 1, 2025, is expected to save taxpayers over Sh50 billion annually by eliminating corruption, streamlining processes, and cutting wasteful expenditure.
National Treasury Cabinet Secretary John Mbadi announced the full transition during a press briefing, emphasizing the significance of the move in enhancing accountability and transparency in the public sector.
“We are confident that the new procurement process will save the government more than Sh50 billion, funds that can now be channelled to priority sectors like education, health and infrastructure,” said Mbadi.
Digital Shift in Procurement
Under the new system, all Ministries, Departments and Government Agencies (MDAs) will be required to conduct procurement exclusively through the E-GP platform starting in the 2025/26 financial year. The platform will digitize the entire procurement cycle — from tender advertisement, bidding, to awarding and payment.
Mbadi noted that the elimination of human interaction in the procurement process will significantly reduce corruption, including manipulation by procurement cartels.
“Registration will be done online, the budget for a particular tender will be online, and the entire tendering process will also be conducted digitally,” he added.
Pilot Programs Already Underway
Several government agencies, including Kenya Electricity Generating Company PLC (KenGen), have already begun piloting the system. Counties such as Busia, Elgeyo Marakwet and Makueni have also volunteered for early adoption.
The CS further assured that the system will introduce real-time evaluation of tenders, a measure aimed at ending the disqualification of competitors on flimsy technical grounds.
“You will be required to tender online, the bid will be done online, and the opening of the tender will also be online in the presence of all bidders,” said Mbadi.
Enhancing Payment Integrity
Once fully operational, government payments will be restricted to suppliers vetted and awarded contracts through the E-GP platform. All transactions will be monitored through the Integrated Financial Management Information System (IFMIS).
“Through the system, you will be able to trace who has been paid, making it easy to verify who offered the service and who received the payment,” Mbadi explained.
The move is part of a broader reform agenda to modernize public service delivery and restore public confidence in government procurement. The Treasury has promised to conduct comprehensive training for all government entities to ensure a smooth transition ahead of the July 2025 deadline.
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Government Rolls Out E-Procurement System to Save Sh50 Billion Annually