Cabinet Secretary for the National Treasury and Economic Planning John Mbadi.
Parliament has delivered yet another setback to the National Treasury’s push to enforce the controversial Electronic Government Procurement System (eGPS) after a committee tasked with Implementation of House resolutions annulled two other regulations, annulling two additional circulars tied to its rollout.
The National Assembly Committee on Implementation has recommended that the House void two other regulations after the House voted to annul Circular No. 04 of 2025 of August 12, 2025. The government, through the National Treasury, on July 23 issued a circular stating that only contracts duly reported to the Public Procurement Regulatory Authority would be approved for payment.
The High Court suspended mandatory use of electronic procurement by all public entities and county governments as ordered by Treasury Cabinet Secretary John Mbadi. Justice Bahati Mwamuye suspended the mandatory use of eGPS, pending a petition filed by the Council of Governors and four other parties.
Justice Bahati Mwamuye during a court proceeding at Milimani Law Court on December 18, 2024.
The committee has recommended the annulment of Circular Ref. No. NT /PPD/1/3/14 Vol VI by the Cabinet Secretary for the National Treasury and Economic Planning, dated March 26, directing accounting officers to transition to eGPS with effect from July 1, and Circular No. OP/CAB.6/2A dated June 5 from the Head of Public Service reiterating the need for all procuring entities to onboard into eGPS that occasioned the issuance of 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 Assets Disposal Act,” Mr Wanjala said in his report to the House.
Strict compliance
“The committee notes that monies appropriated in the financial year 2024/25 have been disbursed. 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. This section permits the use of both manual and electronic procurement methods, ensuring flexibility and efficiency in procurement.”
The National Assembly on August 19 adopted the report of the Committee on Delegated Legislation and annulled the Public Procurement Regulatory Authority Circular No. 04/2025. The committee, chaired by Ainabkoi MP Samuel Chepkonga, said the circular requiring all public procuring entities to use eGPS attempts to evade House approvals violates Section 77 of the Public Procurement and Asset Disposal Act.
The High Court suspended mandatory use of electronic procurement by all public entities.
It said the Circular was in breach of Articles 2(1)&(2), 10, 27(2), 94(5) and 227 of the Constitution related to supremacy of the Constitution, national values and principles of governance, including public participation, transparency and accountability, equality and enjoyment of all rights and fundamental freedoms, power to make provisions having the force of law, and contracting for goods or services with a system that is fair, equitable, transparent, competitive and cost effective. In following up the House resolution, the committee said two other state directives needed to be annulled.
“That by a Resolution of the House through adoption of the Report of the Committee on Delegated Legislation on its consideration of the Public Procurement Regulatory Authority Circular on the Enforcement of Compliance with the Mandatory Use of eGPS by all Public Procuring Entities (Circular No. 04 of 2025),” the House annulled Circular No. 04 of 2025 of August 12,2025, Mr Wanjala said in the latest report.
Enforcement
“That 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, stating that eGPS shall be the primary means of procurement in all government transactions.
“Further, the House did not annul two previous circulars: Circular Ref. No. NT/PPD/1/3/14 Vol VI by the Cabinet Secretary, the National Treasury and Economic Planning dated March 26, 2025, directing accounting officers to transition to eGPS with effect from July 1, 2025; and Circular No. OP/CAB.6/2A dated June 5, 2025, from the Head of Public Service reiterating the need for all Procuring Entities to onboard into eGPS.”
Launch
CS Mbadi on April 7 launched the long-awaited eGPS. The system is part of the government’s goal of enhancing efficiency, accountability, and value for money in the use of public funds.
The system was to promote fair, transparent, competitive, and cost-effective procurement. Its rollout followed a directive by President William Ruto during the State of the Nation Address on November 21, 2024. Dr Ruto directed the Treasury to fully roll out eGPS by the first quarter of 2025. The circular required that only procurements processed through the platform be sanctioned and paid for.
Follow our WhatsApp channel for breaking news updates and more stories like this.
