Judicial body halts implementation of the Treasury's electronic procurement system directive
In a significant turn of events, the High Court in Nairobi has suspended the decision requiring counties and government agencies to use the Electronic Government Procurement System (e-GPS). The ruling was issued following a case filed by Peter Kirui, Legal Consultancy Group Ltd, Patrick Ekirapa, the Council of Governors, and others.
The controversy surrounding the e-GPS system stems from its impact on county procurement processes, particularly in rural areas where many health centres lack internet connectivity. Despite the initial intention to streamline procurement, Wanyama, in his statements, highlighted the disruptions caused by the system.
The implementation of the e-GPS has been a contentious issue, with concerns raised about its potential discrimination towards those without technological knowledge or access to digital devices. The plaintiffs argued that the system was against the Constitution due to these reasons.
The court's conservatory order stays the decision of the Cabinet Secretary, National Treasury and Economic Planning, and the Public Procurement Regulatory Authority's Circular No. E04/2025. However, it is essential to note that there is no available information indicating that the National Assembly of Kenya annulled the directive of the e-GPS on August 19, 2025.
The Public Procurement and Regulatory Authority issued Circular No. 04 of 2025 on August 12, 2025. However, it was annulled by the National Assembly on August 19, 2025, due to violations of the Constitution of Kenya, the Public Procurement and Disposals Act, and the entire provisions of the Statutory Instruments Act.
Mary Mwiti, the Chief Executive of the Council of Governors, stated in her affidavit that all 47 governors had raised their concerns with the Treasury CS but were ignored. Furthermore, it was revealed that the registration of suppliers and creation of users of the e-GPS system had been centralized, excluding mama mbogas and wanjikus in rural areas from participating in procurement opportunities.
The new system was procured without meaningful public participation and without prior training of the users. As a result, all county health facilities have been affected, with staff not receiving training to use the e-GPS system. Interestingly, three counties that were piloted are still unable to use the e-GPS system.
The orders will lapse on October 15, 2025, unless extended by the court. The Council of Governors decided to move to court to have their grievances addressed, marking a crucial step towards ensuring fair and inclusive procurement processes in Kenya.
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