The National Assembly is stepping up its resistance to the Treasury’s push for mandatory use of the Electronic Government Procurement System (eGPS), with the Committee on Implementation recommending the nullification of two more executive directives.
This development follows the House’s earlier decision to void Circular No. 04 of 2025, which had required all government entities to adopt eGPS for procurement activities.
The committee’s report identifies Circular Ref. No. NT/PPD/1/3/14 Vol VI, issued on March 26, 2025, by the Treasury Cabinet Secretary, and Circular No. OP/CAB.6/2A, dated June 5, 2025, from the Head of Public Service, as ultra vires.
These directives had instructed accounting officers to transition to eGPS from July 1, 2025, and reiterated that all procuring entities must integrate the system, forming the basis for Circular No. 04 of 2025.
“The committee concurs with the annulment of Circular No. 04 of 2025 of August 12, 2025, by the House. Further, the committee recommends that the House declare the above circulars (a & b) a nullity, as they create ultra vires provisions in contravention of Article 227 of the Constitution and Section 77(1) of the Public Procurement and Asset Disposal Act,” Budalang’i MP Raphael Wanjala stated in his report.
Previously, the Treasury had issued a July 23 circular stating that only contracts processed through PPRA would be eligible for payment. This requirement was suspended by the High Court following a petition from the Council of Governors and other stakeholders.
Justice Bahati Mwamuye’s decision temporarily halted compulsory use of eGPS until the legal challenge is resolved.
The committee highlighted that funds allocated for the 2024/25 fiscal year had already been disbursed, directing that all ongoing projects continue according to the approved procurement frameworks.
“The committee recommends that the implementation of projects for the financial year 2024/25 proceeds according to the approved procurement plans, in strict compliance with the provisions of Section 77(1) of the Public Procurement and Asset Disposal Act,” the report read. “This section permits the use of both manual and electronic procurement methods, ensuring flexibility and efficiency in procurement.”
Earlier, on August 19, the House adopted the Committee on Delegated Legislation’s report, nullifying Circular No. 04 of 2025.
The Implementation Committee, chaired by Ainabkoi MP Samuel Chepkonga, noted that mandating eGPS for all public procurement violated parliamentary oversight and breached several constitutional articles, including 2(1), 10, 27(2), 94(5), and 227, which address the supremacy of the Constitution, transparency, accountability, equality, and fair contracting.
The committee warned that annulling Circular No. 04 of 2025 did not prevent the government from enforcing eGPS through other executive directives.
“The annulment of Circular No. 04 of 2025 of August 12, 2025, by the House did not take cognisance of the fact that enforcement of compliance with the mandatory use of eGPS by all public procuring entities could still proceed by way of a Cabinet directive in its fourth meeting of June 24, 2025,” Wanjala said.
The eGPS platform, launched on April 7 by Treasury Cabinet Secretary John Mbadi, aims to enhance efficiency, accountability, and value for money in government procurement.
Its rollout follows President William Ruto’s directive in the November 21, 2024 State of the Nation Address, which instructed the Treasury to implement the system fully by early 2025.
Under the contested circulars, only procurements processed through eGPS were to be authorized and paid. With Parliament now invalidating multiple directives and the courts halting mandatory use, the system’s adoption faces delays, leaving both manual and electronic procurement methods in operation until the legal and legislative disputes are settled.
