Parliament has shot down a circular issued by the National Treasury requiring mandatory use of the electronic government procurement system (e-GPS) by all public entities on the grounds that it contravenes the Constitution.
The Treasury on July 23, 2025 issued a circular stating that only (existing) contracts duly reported to Public Procurement Regulatory Authority (PPRA) will be approved for payment. Treasury issued the circular following complaints by entities that they were facing challenges using the system.
The National Assembly last evening unanimously backed the findings of the Committee on Delegated Legislation and annulled in its entirety the Public Procurement Regulatory Authority Circular No 04/2025.
The MPs threw out the circular only after it had been seconded by the Leader of the Minority in National Assembly, Junet Mohammed.
The committee, chaired by Ainabkoi MP Samuel Chepkonga, said the circular requiring all public procuring entities to use e-GPS attempts to evade House approvals, therefore contravenes Section 77 of the Public Procurement and Asset Disposal Act.
It added that it also contravened Articles 2(1)&(2), 10, 27(2), 94(5) and 227 of the Constitution relating to supremacy of the Constitution, the national values and principles of governance including public participation, transparency and accountability, equality including enjoyment of all rights and fundamental freedoms, power to make provisions having the force of law and contracting for goods or services with a system that is fair, equitable, transparent, competitive and cost effective.
“The Circular is in contravention of sections 9 and 77 of the Public Procurement and Asset Disposal Act, Cap. 412C relating to the function of the Authority which do not extend to creating binding obligations and the recognition that tender submissions may be made in either manual or electronic form, and contravention of sections 2, 6, 11, 13, 22 and 24 of the Statutory Instruments Act, Cap 2A relating to interpretation of a statutory instrument, submission of a regulatory impact statement on each statutory instrument, requirement for publication and tabling of a statutory instrument before Parliament, and exercise of powers in making statutory instruments.”
Treasury Cabinet Secretary John Mbadi had on April 7, 2025 launched the long-awaited e-GPS system.
The system is part of the government’s goal of enhancing efficiency, accountability, and value for money in the use of public funds.
The system was to promote fair, transparent, competitive, and cost-effective procurement. The rollout followed a directive by President William Ruto during the State of the Nation Address on November 21, 2024.
Dr Ruto directed the Treasury to fully roll out the e-GP system by the first quarter of 2025.
The circular required that only procurements processed through the platform will be sanctioned and paid for.
While seconding the debate on the motion to annul the circular, Mr Mohamed said the law is clear that individuals are allowed to use manual or electronic systems.
“If you want to use electronic means, you change the law. You can’t change the law through a circular. The circular is just a piece of paper,” Mr Junet said.
“This reminds me of a circular issued by the former Central Bank of Kenya governor that when you want to withdraw over Sh1 million, you have to explain. This is a warning to the Executive that the only body the Constitution has given power to make law is Parliament.”
Mr Junet urged MPs to throw out the circular immediately so that people can start procuring manually from tomorrow morning.
