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Treasury Cabinet Secretary John Mbadi issued a circular directing that all public procurement entities adopt the electronic Government Procurement System (e-GPS) for payments. He insisted that payments would only be authorized for contracts duly registered with the Public Procurement Regulatory Authority (PPRA).
The move, unveiled in July 2025, was aimed at streamlining contract payments and boosting accountability in government spending. However, the directive immediately drew backlash from various quarters who claimed it sidelined parliamentary oversight.
On August 19, 2025, the National Assembly unanimously voted to revoke Circular No. 04/2025 after adopting a report by the Committee on Delegated Legislation. Lawmakers argued that the Treasury’s directive violated several provisions of the Constitution, including Articles 2(1) and (2), which enshrine constitutional supremacy, as well as Articles 10, 27(2), 94(5), and 227, which touch on governance, equality, lawmaking authority, and fair procurement practices.
The MPs further insisted that the circular contradicted the Public Procurement and Asset Disposal Act and the Statutory Instruments Act by bypassing Parliament’s role in approving such regulatory measures.
Committee chair Samuel Chepkonga explained that while digital systems can improve efficiency, the Treasury’s unilateral move was unconstitutional. He said the directive sought to compel all institutions to use e-GPS without allowing for manual submissions of tenders, as permitted by law.
Lawmakers emphasized that procurement processes must uphold fairness, transparency, competitiveness, and cost-effectiveness. They also criticized the Treasury for failing to conduct public participation or present the regulatory framework to Parliament before implementation, a clear breach of statutory requirements.
CS John Mbadi had introduced the e-GPS system in April 2025, branding it as a transformative tool to curb corruption, enhance transparency, and ensure better management of public funds. The system was designed to digitize tendering, approval, and payment processes, reducing loopholes exploited in manual systems.
Mbadi argued that adopting e-GPS across all institutions would align Kenya with global best practices in public finance management. But despite its intended benefits, Parliament ruled that implementation must follow due process rather than executive directives alone.
The revocation of the Treasury circular underlines the National Assembly’s determination to defend its constitutional authority and ensure proper checks and balances. Lawmakers stressed that while Kenya needs reforms in procurement, they must be anchored in the law and safeguard principles of accountability, inclusivity, and public participation.
The decision is seen as a major setback for Treasury’s digitization agenda but a victory for constitutionalism and parliamentary oversight.
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