Governors reject treasury’s push for new e-procurement system, demand proper consultations

Governors reject treasury’s push for new e-procurement system, demand proper consultations

Council of Governors (CoG) Vice Chairman Ahmed Abdullahi speaking in an interview with Citizen TV on February 6, 2024.

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The standoff between the Council of Governors (CoG) and the National Treasury deepened on Monday after county chiefs flatly rejected a directive requiring all government agencies to migrate to the new electronic procurement platform.

Following a four-hour special council meeting, the governors accused the Treasury of rushing the rollout of the system, which they described as “defective” and ill-prepared to handle county operations. They vowed not to be “intimidated or compelled” into adopting the platform until key technical challenges are addressed.

“We call on the National Treasury to immediately withdraw the circular directing counties to implement e-GP until proper consultation is done,” the CoG chairperson stated after the meeting.
The governors warned that forcing counties to transition prematurely could disrupt service delivery, noting that only three out of 47 counties participated in the pilot phase—and all reported major failures.

Mandera Governor Mohamed Khalif Abdullahi, a member of the CoG executive, bluntly remarked: “If it is not working, it is not working. Don’t push it down our throats.” Nyeri Governor Mutahi Kahiga added: “As counties, we have no issue with e-procurement, but we cannot be forced to use a system that is clearly dysfunctional.”

So far, only four entities—the National Treasury, Ethics and Anti-Corruption Commission (EACC), Privatization Commission, and the Public Procurement Regulatory Authority—have successfully onboarded the platform.

Alongside the procurement standoff, governors also rejected the planned transfer of 7,414 Universal Health Coverage (UHC) staff to counties, insisting the national government must first release adequate funds to sustain the payroll and settle all pending gratuities.

“All we are asking is that the gratuity arrears be cleared and that our allocation be increased by Sh7.7 billion so that we can sustain these staff in perpetuity,” said Governor Abdullahi.

The CoG further argued that the Health Ministry’s directive contradicted an earlier framework negotiated between the two levels of government on managing the UHC staff transition.

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