The State has frozen the processing of all unconcluded public contracts pending transition to a new digital procurement system.
In a circular to heads of national and county governments on Friday, June 27, the Public Procurement Regulatory Authority (PPRA) directed agencies to stop new procurements and cancel those where no contract has been awarded, until the full rollout of the electronic government procurement system (e-GPS).
This will see all procurements where tenders have been floated, bidding happened or where agencies are already evaluating bids terminated, provided contracts have not been awarded.
“All procuring entities are directed in the intervening period and effective from the date of this Circular (June 27, 2025), to with immediate effect cease initiation of procurement processes for Financial Year 2025/2026 going forward through the use of framework agreements and/or framework contracts,” PPRA Director-General Patrick Wanjuki said in a circular.
All public entities are expected to use the e-GPS for procurements starting July 1, 2025, to end the use of manual systems which have been weak and prone to abuse.
Under the e-GPS, all contracts signed by county and national government entities will be published on the Public Procurement Information Portal (PPIP) automatically, which will bring details of beneficiaries of public contracts to the limelight.
Previously, entities have been required to upload procurement information, including companies awarded different contracts, on the PPIP where the public can access the information, but many entities and counties have been defiant.
The halting of ongoing tender processes and new procurements under the existing system is the first action signaling the transition, after PPRA two weeks ago gave counties and national government agencies until June 30, 2025, to onboard the e-GPS.
The agency said the transition to e-GPS is expected to enhance efficiency, transparency, competition, and accountability, in order to guarantee value for money in public contracts.
“The e-GPS is designed to automate and streamline public procurement processes from planning stage to payment,” the PPRA noted.
On June 17, the Authority issued a circular across county and national government agencies, giving them until June 30, 2025, to onboard the e-GPS, which would be the sole procurement system for the government.
In the communication, PPRA warned that procurement responsibilities of entities that will not have enrolled on the e-GPS by the end of June would be taken away and handed to compliant entities.
“This will eliminate the need for procuring entities to upload information on the portal. The required reports will automatically be generated and submitted through the E-GPS effective 1st July 2025,” Mr Wanjuki said.
The National Treasury and President William Ruto’s office have also issued communications in March and June 2025 preparing public entities for the onset of e-GPS starting July 1, 2025.
The transition from manual procurement systems where agencies undertake procurement and are only required to upload documents on the PPIP will now see all procurement processes happen in the visibility of watchdogs such as the PPRA, Treasury, the Controller of Budget, and the Auditor-General.
“Effective 1st July 2025, it is expected that all procurements proceedings, including those processed through the use of framework agreements/contracts for Financial Year 2025/2026 going forward, shall be carried out through the e-GPS,” PPRA said.
It directed all agencies to refrain from issuing any awards or entering into contracts for all procurements undertaken outside the e-GPS with immediate effect.
The Authority expressed expectations that starting Tuesday, July 1, all new procurements would be carried out through the e-GPS. “For the avoidance of doubt, this circular shall not apply to existing contracts and the Authority shall in due course issue guidelines on existing contracts,” PPRA said.
The government is expected to procure goods and services valued at about Sh2 trillion in the fiscal year starting July 1, 2025, both under the development and recurrent budgets.
It is unclear the value of pending contracts affected by the PPRA directive, and the time it will take for agencies to fully utilize the e-GPS.
