Kenya’s Parliament has overturned a directive from the National Treasury that sought to make the electronic Government Procurement (eGP) system mandatory across all public entities.
The Committee on Delegated Legislation, chaired by Ndia MP George Kariuki, declared the Treasury circulars issued in March and June 2025 “unconstitutional and ultra vires,” arguing they violated the Public Procurement and Asset Disposal Act.
In its report to the National Assembly, the committee stated that the circulars dated March 26 and June 5, 2025 illegally compelled accounting officers in ministries, departments, and agencies to migrate fully to the eGP platform by July 1, 2025.
“The Committee concurs with the annulment of Circular No. 06 of 2025 and further recommends that the earlier circulars by the National Treasury and the Head of Public Service be declared null and void,” the report read in part.
Lawmakers observed that the Treasury’s move had caused confusion in ministries and state agencies, many of which had already budgeted and planned projects for the 2024/2025 financial year under the manual procurement system. They warned that enforcing eGP mid-year could disrupt tenders and delay essential services.
Key Resolutions
The committee resolved that all public projects for the current financial year should continue as planned, allowing entities to use either the manual or electronic system. This flexibility, it noted, would enhance efficiency and prevent project delays.
It further recommended that any future changes to the procurement system be guided by detailed regulations presented before Parliament for approval, ensuring transparency and legal compliance.
Court Ruling
In September 2025, the High Court had already suspended the mandatory use of eGP, directing that both manual and electronic procurement processes remain valid. The court emphasized that the Treasury and Public Procurement Regulatory Authority must process submissions equally, provided they meet the law’s requirements.
