Electronic Government Procurement Rollout Slows Spending but Promises Cleaner Deals

Kenya’s transition to a fully digital procurement platform has slowed down government spending, but officials say the shift will be worth the temporary disruptions as it promises greater transparency and accountability in the use of public funds.

The new electronic Government Procurement (e-GP) system requires all budgets to be uploaded before any tendering can begin. This has left many counties and state departments restricted to paying salaries, with development spending yet to kick off. Nearly Sh250 billion earmarked for the first quarter remains locked in the system.

Treasury estimates that about Sh1 trillion of this year’s spending is procurement-driven, meaning delays could squeeze project timelines. Yet, officials insist the move will curb graft loopholes that have historically drained billions of shillings from public coffers.

So far, 31 county budgets have cleared approvals in Ifmis, but only four have reached the e-GP stage that unlocks procurement planning and cash requests. Treasury is uploading state department budgets and says county transfers will begin next week.

The rollout is being accompanied by training of finance officers and upgrades for State corporations. Treasury says the temporary slowdown is expected in such a major reform, but the ultimate goal is to streamline tendering, reduce fraud, and ensure value for money.

Experts warn that if uploads do not accelerate, ministries and counties may be forced into a late-year spending rush. However, anti-corruption advocates have welcomed the reforms, saying they could mark a turning point in Kenya’s battle against procurement scandals.