Mbadi : E-procurement here to stay, donwplays House suspension of new system

National Treasury CS John Mbadi has ruled out suspension of the new procurement directive, insisting the rollout of the digital system is unstoppable.

Mbadi said e-procurement is now the cornerstone of government operations and warned that reverting fully to manual systems would open doors to inefficiency and corruption.

He however said the manual system will be considered in extreme situations, such as in far-flung areas where internet connectivity and digital systems face unavoidable challenges.

Appearing before the National Assembly’s Committee on Implementation, Mbadi said e-procurement remains the primary means of purchase as it eliminates all shortcuts and corruption that have characterised the manual system.

“The government is very clear—the manual system is prone to abuse, manipulation and corruption. We cannot make progress if we do the same thing, the same way,” Mbadi told the committee chaired by Budalangi MP Raphael Wanjala.

“Government is using e-procurement and where we have challenges we will use the other system – which is manual.”

The CS said the rollout of the new system will ensure accountability, transparency and save Kenyans millions of shillings.

Mbadi was appraising the committee on the implementation status of the House resolution that suspended the National Treasury circular requiring mandatory use of the electronic government procurement system (e-GPS).

MPs in August backed the findings of the Committee of the Delegated Legislation and annulled the Public Procurement Regulatory Authority Circular No 04/2025.

But yesterday, Mbadi indicated there was no turning back on the rollout, even as he argued that the circular backed by the constitution cannot be suspended through a motion.

“I don’t want to appear like I am disobeying the National Assembly, I have been a member here for a very long period, I cannot undermine the authority of Parliament but respectfully I want to disagree, I was categorical that from July 1, all government procurement will be done digitally,” Mbadi affirmed.

He was responding to a question by Embakasi West MP Mark Mwenje, who demanded a direct answer on compliance regarding use of the new system.

“Are you going to comply with the resolution of the House so that we submit our report and meet on the other side of the House?” Mwenje posed.

The CS defended the system switch, saying the resistance is from some quarters that are unduly benefiting from the current manual approach.

“The implementation of the e-GP system will result in reduced cost of goods, works and services: increased transparency in procurement processes and practices, improved efficiency in procurement by minimising the procurement cycle time,” he stated.

Mbadi noted that his ministry has already trained suppliers and procurement agencies and will remain responsive to any challenges.

He also clarified that the new system applies only to procurement under the 2025/2026 funding and not monies received in the previous financial year.

The CS also revealed that up to 10,000 suppliers and 1,379 procuring agencies have complied with the new requirement.

“As part of the rollout, the National Treasury carried out a massive registration exercise of all procuring entities and suppliers, training of suppliers and a help desk has been set up at the 4th floor of KISM Towers to support procurement entities across the country,” Mbadi added.

Wanjala directed that the CS furnish the committee with the details on how the digital system was procured, its ownership and the amount the country will incur in acquiring the platform.

INSTANT ANALYSIS

Mbadi’s strong defense of the system now sets him on a collision course with MPs who backed the suspension, with the debate expected to intensify as government ministries and agencies await clarity on procurement procedures.