Governors defy Ruto on e-Procurement System, demand consultation, capacity building before rollout

Openly agitated governors have defied President William Ruto’s Electronic Government Procurement (e-GP) system directive through the Ministry of the National Treasury and demanded appropriate consultations and capacity building are undertaken as a pre-condition.

In a statement issued today, the Council of Governors (CoG) Chair Ahmed Abdullahi also demanded for the suspension of the implementation circular forthwith.

The governors said the new procurement system, introduced by the National Treasury, had been enforced hastily and was already disrupting service delivery in counties.

While calling for the immediate withdrawal of the e-GP system, CoG cited implementation challenges that threaten service delivery across counties.

“The roll-out was hasty, marred with inconsistencies and has disrupted service delivery in counties,” he said after an extraordinary council meeting in Nairobi,

“Only three counties participated in the pilot, yet the system was enforced nationally before addressing the gaps identified.”

The council noted that the lack of adequate sensitisation and training had paralyzed procurement processes, particularly in critical sectors such as health.

The CoG pointed out that the e-GP system, as currently implemented, undermines the “distinct status” of County Governments as provided in the Constitution,” Abdullahi stated.

The governors also raised serious concerns about the system’s rollout, arguing that it undermines county governments’ constitutional mandate and lacks proper legal foundation.

The governors argue that the system violates principles of devolved governance, stating that adequate consultation and stakeholder involvement were not conducted before the system’s introduction.

“We therefore call on the National Treasury to immediately withdraw the circular directing Counties to implement this e-GP until proper consultation, legal alignment, and capacity-building are undertaken,” the statement reads.

According to the CoG statement, the rushed implementation has created significant operational difficulties.

“Only three Counties participated in the pilot, yet the system was enforced nationally before addressing the initial findings identified,” COG added. “Inadequate sensitization and training has paralyzed procurement processes.”

The governors’ opposition comes amid Treasury Cabinet Secretary John Mbadi’s aggressive push for full adoption of the digital procurement platform.

Last week, Mbadi issued a directive requiring all state departments to comply with the new system, warning that procurement processes would not proceed without compliance.

Mbadi had set a strict timeline, requiring all departments to transition to the digital platform within a week of his announcement.

The Treasury CS emphasized that the government had conducted extensive training programs, including webinars for over 5,000 officers across the government system.

The new platform was designed to enhance transparency and accountability by covering the entire procurement cycle, from budgeting to payment stages.

Mbadi argued that unlike the current system where procurement becomes manual after budget upload to IFMIS, the new system provides end-to-end digital coverage.

The CS had dismissed claims that Parliament could revoke the e-Procurement system, asserting that the National Treasury remains the sole custodian of the country’s financial management systems.

He suggested that opposition to the system stems from desires to maintain manual processes that allow for procurement manipulation.