Government suspends procurement ahead of e-GPS rollout

The government has ordered an immediate suspension of new procurement processes under framework agreements and contracts ahead of the transition to the new Electronic Government Procurement System (e-GPS).

The Public Procurement Regulatory Authority (PPRA) in a circular issued on Monday, 30, directed all procuring entities to halt or suspend the procurement processes for the 2025/2026 financial year unless it is under the new system.

PPRA Director General Patrick Wanjuki said that the move is part of the government’s push to fully migrate to the digital procurement system by July 1, 2025. 

“Procuring entities are to cease initiation of procurement processes for Financial Year 2025/2026 through framework agreements and refrain from issuing any awards or entering into contracts until after the rollout of the e-GPS,” Wanjuki said in the circular, copied to heads of state departments. 

The directive follows earlier communications from the Office of the President and the National Treasury, mandating the shift to the e-GPS to enhance transparency, efficiency, and accountability in public procurement. 

The new system, developed under the Public Procurement and Asset Disposal Act, aims to automate procurement processes from planning to payment, reducing delays and corruption risks. 

The PPRA has also instructed procuring entities to terminate proceedings that have yet to receive procurement letters.

“All procuring entities are directed in the intervening period and effective from the date of this Circular, to invoke the provisions of Section 63 of the Act on termination and cancellation of procurement proceedings, provided that no letters of notification of awards have been issued.

However, existing contracts remain unaffected, with the Authority set to issue separate guidelines on their management. 

“For avoidance of doubt, this Circular shall not apply to existing contracts and the Authority shall in due course issue guidelines on existing contracts,” reads the circular.

Accounting officers across government agencies have been further directed to ensure compliance and notify all relevant personnel.

“All Accounting Officers are required to note and bring the contents of this Circular to the attention of all officers involved in the public procurement and asset disposal activities within their jurisdiction,” said Wanjuki

 The suspension is expected to remain in place until the e-GPS is fully operational. 

This abrupt halt has raised concerns among suppliers and contractors, but the government maintains that the transition will streamline procurement and curb wasteful spending.