By Benadeta Mwaura - Reporter
Kenya, June 11, 2026 - All government procurement processes will be conducted through a digital platform from July 1, 2026, Treasury Cabinet Secretary John Mbadi has announced, as the government moves to tighten oversight of public spending and curb procurement-related losses.
The transition to the Electronic Government Procurement (e-GP) System marks one of the most significant public finance reforms in recent years, with Treasury arguing that the platform will enhance transparency, accountability and value for money in the use of public resources.
Speaking on the reforms, Mbadi said exemptions previously granted to some government entities would come to an end when the new financial year begins.
"If we can have a system like eGP, which is rolled out fully, we can close these procurement loopholes. I know we gave some exemptions this year, and I am saying this today, next financial year, there will be no exemptions for eGP," Mbadi said.
The Treasury chief has repeatedly identified procurement as one of the biggest sources of wastage and corruption in government expenditure, arguing that inflated contracts and weak oversight have contributed significantly to the loss of public funds.
"Where we waste money is actually on the procurement side, where instead of procuring a hall for Ksh15,000, you procure for Ksh50,000, and the surplus is shared in between," Mbadi said.
The e-GP system was officially launched in April 2025 at the Kenya School of Government in Kabete, Nairobi, as part of the government's broader digital transformation agenda. Under the system, suppliers will register online, submit bids electronically, track tender awards and manage contracts through a centralized digital platform.
According to the National Treasury, public procurement accounts for nearly 60 percent of Kenya's annual budget, making it one of the most critical areas for public finance reforms.
Treasury estimates suggest that improving procurement efficiency could save the country more than Sh85.9 billion annually, funds that could be redirected to essential public services.
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During the launch of the system, Mbadi described the initiative as more than a technological upgrade.
"This is not only a technological shift but a policy action grounded in our Constitution and supported by global best practices. The system will promote fair, transparent, competitive, and cost-effective procurement," he said.
The digital platform will be integrated with key government systems, including iTax, IFMIS, the Business Registration Service, and the Integrated Population Registration System, allowing authorities to verify compliance, reduce fraud and improve monitoring of public expenditure.
The move comes as the government intensifies efforts to strengthen fiscal discipline amid growing concerns over public expenditure and a tightening budget environment. Treasury has already signaled plans to reduce reliance on supplementary budgets and improve efficiency across ministries, departments and agencies.
Mbadi warned that resistance to the reforms would not be tolerated.
"Any semblance of resistance to this reform will not be tolerated. The future is digital, and the time to embrace it is now," he said.
The full rollout of the e-GP system is expected to increase scrutiny of government spending while giving suppliers and the public greater visibility into how contracts are awarded and executed.
For businesses seeking government tenders, the shift means all procurement transactions will increasingly move online, eliminating many of the manual processes that have historically been associated with delays, inefficiencies and corruption.