The Council of Governors (CoG) has threatened to take the National Treasury to court over its continued implementation of the electronic government procurement (e-GP) system, despite its annulment by the National Assembly earlier this month.
CoG Chairperson and Wajir Governor Ahmed Abdullahi said the hurried rollout of the system has disrupted service delivery in counties and lacks a sound legal foundation.
“We note that the roll out of the e-GP from its conception has been hasty, incomprehensive and marred with inconsistencies that have caused confusion and paralysis of service delivery across procuring entities. Further, the circular and its implementation is devoid of legal and regulatory basis and hasn’t considered the distinctiveness of county governments,” Abdullahi stated.
On August 19, Parliament annulled Treasury Circular No. 04/2025, which had directed all public entities and counties to transition to the e-GP platform by July 1, 2025.
Treasury insists, however, that the system will enhance accountability and efficiency in public procurement. Treasury Cabinet Secretary John Mbadi has projected annual savings of at least Ksh100 billion, citing experiences from countries where e-procurement has cut costs by 10–15 percent of procurable budgets.
“So far, 31 counties have submitted their budgets for review before being uploaded to the e-GP and the Integrated Financial Management Information System (IFMIS). Of these, four have already been cleared,” said Mbadi, adding that 16 counties have yet to submit their budgets to the Controller of Budget.
But governors maintain that with the annulment of the circular, procurement should revert to existing legal frameworks. Abdullahi warned that unless Treasury lifts administrative barriers tied to e-GP, counties would have no option but to seek legal redress, particularly given the delays affecting essential sectors like health.
Treasury data shows 1,285 procuring entities and 7,637 suppliers have already been registered on the platform, with hundreds trained on its use. Still, governors argue that full operationalization of county budgets for the 2025/26 financial year remains stalled, further fueling tensions between the two levels of government.
