High Court Halts Mandatory e-GP Rollout, Raising Uncertainty for Businesses

The High Court has blocked the compulsory rollout of the government’s electronic Government Procurement System (e-GP), throwing a curveball to businesses that depend on government contracts.

In a ruling on Monday, Justice Bahati Mwamuye of the Milimani Law Courts directed that tender submissions may be made either manually or electronically, provided they meet the requirements of the Public Procurement and Disposal Act.

“A conservatory order be and is hereby issued requiring that all Public Procurement Entities shall comply with Section 77(1) of the Public Procurement and Disposal Act in that submission of tender documents shall be in writing and in either electronic or manual form; and such submissions shall comply with the other requirements of Section 77 generally and subsection (1) in particular,” ruled Justice Mwamuye.

The court further ordered the National Treasury and the Public Procurement Regulatory Authority (PPRA) to treat both manual and electronic submissions equally. “A conservatory order be and is hereby issued requiring the Cabinet Secretary, National Treasury & Economic Planning AND the Public Procurement Regulatory Authority to accept both electronic and manual submissions of tender documents and to process the same equally irrespective of their form of submission and provided that they meet the criteria set out in Section 77 of the Public Procurement and Disposal Act,” the court added.

The e-GP system, which was designed to digitise all state procurement, is part of IMF-backed reforms meant to boost transparency and seal corruption loopholes. Treasury Cabinet Secretary John Mbadi had ordered all government departments to fully integrate into the platform by this week, with the aim of launching the system in 2024.

The ruling, however, is a reprieve for contractors and suppliers particularly SMEs and county-based businesses, who had expressed fears of exclusion due to poor internet access, high compliance costs, and technical inefficiencies.

Analysts warn that the decision could delay Kenya’s procurement digitisation, which is vital for investor confidence, but note it will preserve broader participation in the short term. Businesses bidding for state tenders must now maintain both digital and paper-based processes, potentially raising administrative costs but ensuring access while the case proceeds.