Standoff as MPs, CS Mbadi clash over new e-procurement system

A stalemate over the government’s new Electronic Government Procurement System, also known as E-GPS, is threatening to paralyze services in the public sector.

The implementation of the new procurement system being fronted by Treasury is facing stiff resistance from MPs and Governors, citing legal and logistical concerns.

However, Treasury Cabinet Secretary John Mbadi insists that the electronic platform is the key to eliminating corruption and ensuring transparency in public procurement. 

The system, intended to digitize all government procurement processes, has met resistance from MPs, who argue it is premature and impractical under current conditions.

Appearing before the Parliamentary committee on the implementation of the Constitution on Thursday, CS Mbadi stood firm on the government’s position.

“We made a decision to use electronic procurement. The law clearly emphasizes this. It is the most effective way to combat corruption and ensure public procurement is transparent and accessible to all Kenyans,” said Mbadi.

But MPs were not convinced. They argue that many institutions are ill-equipped to implement the system, and the law still allows for manual procurement.

“It doesn’t matter what the government thinks; what matters is what the law says. Most institutions are struggling with this system. The law provides for both methods. If you believe electronic procurement is the best option, bring it to Parliament and let’s amend the law,” said Embakasi West MP Mark Mwenje.

“Let’s not rush the country into adopting a system we don’t fully understand. We commend your efforts to prevent the loss of public funds, but implementation should begin with high-risk areas first, then expand gradually,” added Kipkelion West MP Hillary Kosgei.

“Introducing a system cannot be a revolution, it must be a change. If it fails, you will take responsibility,” noted Kiminini MP Maurice Kakai.

MPs are now demanding clarity on whether the Treasury will comply with the directive issued by the House.

“That means for the entire year, some institutions may not procure anything. Are you going to comply with the House’s direction or not?” pressed MP Mwenje.

Lawmakers further demanded to know how the e-procurement system was procured and how much it cost.

“Who owns this E-GPS system? It could be belonging to someone in India,” said Mwenje.

“The system belongs to us. It has two service providers, one local and the other in India. The process of procurement was completed in 2022. It cost Ksh.387 million,” clarified CS Mbadi.