E-procurement crackdown to ramp up anti-corruption fight

The government has unveiled an ambitious anti-corruption and accountability agenda in the 2026-27 budget, betting on technology, stricter oversight and stronger institutions.

The aim, according to Treasury CS John Mbadi in his budget speech, is to curb the misuse of public resources and restore public confidence in government spending.

Mbadi said the state was keen to block leakages in procurement, improve financial reporting and strengthen institutions charged with safeguarding public funds.

Corruption remains one of the most persistent concerns among Kenyans, with public anger over wastage, inflated contracts and stalled projects dominating national debates.

The key government's anti-graft strategy is the full rollout of the electronic Government Procurement (e-GP) system.

The Treasury boss said the system has in a big way changed how public contracts are awarded and managed.

It is to replace manual systems that have often been blamed for creating opportunities for manipulation, collusion and loss of public funds.

Officials can now track procurement transactions more effectively through platform integrated with key government systems.

According to the budget statement, 1,543 procuring entities have already been registered on the system alongside more than 40,000 suppliers.

More than 22,000 government officers and 12,000 suppliers have been trained, while over 8,000 tenders and 1,863 contracts have been published through the platform.

Mbadi declared that beginning July 1, 2026, no government entity will be allowed to procure goods or services outside the electronic platform.

"Beginning July 1, 2026, there will be no exemption to procure outside the system," he said.

The government has also submitted the Public Procurement and Asset Disposal (Amendment) Bill, 2026 to Parliament.

The proposed law seeks to introduce mandatory disclosure and reporting requirements, anchor electronic procurement in law.

Beyond procurement, the budget proposes increased funding for key institutions charged with investigating, prosecuting and auditing corruption cases.

Mbadi has allocated Sh5.1 billion to the Ethics and Anti-Corruption Commission, Sh7 billion to the Office of the Director of Public Prosecutions, Sh6 billion to the State Law Office and Sh9.8 billion to the Office of the Auditor General.

Treasury says the allocations are intended to strengthen accountability and intensify anti-corruption efforts across government.

"These allocations will intensify anti-corruption efforts and reinforce public sector integrity," Mbadi said.

Parliament and the Judiciary, which play oversight and accountability roles, are also set for increased funding, receiving Sh50.9 billion and Sh30.4 billion respectively.

Treasury argues that stronger institutions are critical to sustaining transparency and public trust.

Another major reform targets weaknesses that have repeatedly been flagged by auditors.

Treasury plans to amend the Public Finance Management Act and related regulations to strengthen the mandate of internal auditors and improve oversight across public institutions.

The reforms are aimed at creating mechanisms for tracking the implementation of recommendations issued by Parliament, the Auditor General, and audit committees.

Government agencies will also be required to strengthen internal audit functions, adopt an integrated Internal Audit Management System and expand the use of enterprise risk management tools.

Mbadi said the measures are designed to strengthen transparency, improve internal controls and ensure prudent management of public resources.

The budget also seeks to improve accountability through better management of state assets.

It also emerged that Treasury has operationalised Assets and Inventory Management modules within IFMIS, giving government real-time visibility of assets held across ministries, departments and agencies.

An assessment conducted through the new system shows public entities collectively control assets worth about Sh4.9 trillion.

Mbadi said the Treasury has developed a government asset valuation policy framework and a public assets tagging framework.

The measures are expected to make it easier to identify, track and account for public property, he said.

The government is also pushing ahead with a transition from cash-based accounting to accrual accounting.

This is expected to provide a more complete picture of public finances by capturing assets, liabilities, debts, inventories and other obligations that may not be visible under the current system.

Treasury says the shift will allow Parliament, citizens and investors to obtain a more accurate account of the country's financial position.

The exchequer says it would reduce opportunities for hidden liabilities and opaque financial reporting.

Further scrutiny is being directed at pending bills, long characterised by questionable claims and disputed obligations.

The Pending Bills Verification Committee reviewed 91,911 claims worth Sh637.6 billion and recommended settlement of verified claims amounting to Sh235.6 billion.

Treasury has proposed Sh68 billion in the coming financial year to clear verified obligations owed to suppliers and contractors.

To curb illicit financial flows, the government says it has strengthened anti-money laundering measures.

Mbadi cited increased investigations and asset recovery efforts, improved transparency about beneficial ownership and better coordination among enforcement agencies.

The measures signal a shift toward preventing corruption through systems and controls rather than relying solely on enforcement after public funds have already been lost.