The government has announced an immediate suspension of all new procurement processes under framework agreements and contracts, in preparation for the full rollout of the Electronic Government Procurement System (e-GPS) by July 1, 2025.
In a circular issued on Monday, June 30, the Public Procurement Regulatory Authority (PPRA) directed all procuring entities to halt or suspend procurement activities for the 2025/2026 financial year unless conducted through the new digital system. PPRA Director General Patrick Wanjuki stated that this move is crucial to ensure a smooth transition to e-GPS, which aims to enhance transparency, efficiency, and accountability in public procurement.
“Procuring entities are to cease initiation of procurement processes for the Financial Year 2025/2026 through framework agreements and refrain from issuing any awards or entering into contracts until after the rollout of the e-GPS,” Wanjuki said.
The directive follows earlier communications from the Office of the President and the National Treasury mandating the adoption of the digital platform, which is being implemented under the Public Procurement and Asset Disposal Act. The system will automate procurement processes from planning to payment, significantly reducing delays and minimizing opportunities for corruption.
The PPRA also instructed procuring entities to terminate any ongoing procurement proceedings that have not yet received notification letters. Entities are to invoke Section 63 of the Act to facilitate termination or cancellation, provided no letters of award have been issued.
However, existing contracts remain unaffected by the suspension. The Authority has promised to issue separate guidelines on managing these contracts.
To ensure full compliance, accounting officers across all government departments have been tasked with disseminating the circular to all staff involved in procurement activities.
While the move has sparked concern among suppliers and contractors over potential disruptions, the government insists that the transition will ultimately streamline procurement operations and help curb misuse of public funds.
The suspension will remain in effect until the e-GPS system becomes fully operational, marking a major step towards digitizing government procurement processes in Kenya.
