Treasury chiefs summoned over controversial e-GPS rollout

The House in August scrapped a circular requiring mandatory use of the e-GPS by all public procuring entities on grounds that it contravenes the Constitution.

The summonses follow Mr Mbadi and Dr Kiptoo's failure to attend a meeting called by the National Assembly’s Committee on Implementation of House Resolutions to ascertain the implementation status of the PPRA Circular No 04/2025 on the mandatory use of e-GPS by all procuring entities, in contravention of Section 77 of the Public Procurement and Asset Disposal Act, Cap 412C.

The Treasury on July 23, 2025 issued a circular stating that only (existing) contracts duly reported to the Public Procurement Regulatory Authority (PPRA) will be approved for payment.

The National Assembly on August 18 shot down the Treasury circular on grounds that it contravenes the Constitution. The High Court three days ago suspended the mandatory use of electronic procurement by all public entities and county governments as ordered by Mr Mbadi.

Justice Bahati Mwamuye suspended the mandatory use of the -eGPS pending the determination of a petition by the Council of Governors and four others.

Committee on Implementation chairperson Raphael Wanjala (Budalangi) said while the CS and the PS had indicated they are both out of the country, a letter will be dispatched requiring their attendance in person.

“We will write a letter requiring them to attend the next meeting in person and without fail. They have indicated that they are out of the country,” Mr Wanjala said before adjourning the sitting.

“The first thing that this committee will do when the House resumes from recess is to table our report on the implementation status of the House resolution annulling the circular on e-GPS.”

The House on August 18, 2025 unanimously backed the findings of the Committee on Delegated Legislation and annulled in its entirety the Public Procurement Regulatory Authority Circular No 04/2025.

Contravention of law 

The committee chaired by Ainabkoi MP Samuel Chepkonga said the circular requiring all public procuring entities to use e-GPS attempts to evade House approvals and, therefore, contravenes Section 77 of the Public Procurement and Asset Disposal Act.

The committee said the Circular contravention of Articles 2(1)&(2), 10, 27(2), 94(5) and 227 of the Constitution relating to supremacy of the Constitution, the national values and principles of governance including public participation, transparency and accountability, equality including 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.

“The Circular is in contravention of sections 9 and 77 of the Public Procurement and Asset Disposal Act, Cap 412C relating to the function of the Authority which do not extend to creating binding obligations and the recognition that tender submissions may be made in either manual or electronic form, and contravention of sections 2, 6, 11, 13, 22 and 24 of the Statutory Instruments Act, Cap 2A relating to interpretation of a statutory instrument, submission of a regulatory impact statement on each statutory instrument, requirement for publication and tabling of a statutory instrument before Parliament, and exercise of powers in making statutory instruments.”

Mr Mbadi had on April 7, 2025 launched the long-awaited e-GPS system as 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. The rollout of the system followed a directive by President William Ruto during the State of the Nation Address on November 21, 2024.

Dr Ruto directed the National Treasury to fully roll out the e-GP system by the first quarter of 2025.

The Circular required that only procurements processed through the platform will be sanctioned and paid for. 

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