Mbadi: e-procurement may save Sh85bn

John Mbadi, Cabinet Secretary for the National Treasury and Economic Planning, has defended the introduction of the Electronic Government Procurement (e-GP) system, saying it is already strengthening transparency and efficiency in public procurement and may eventually save the country as much as Sh85 billion.
While appearing before the Senate to answer a question from Nominated Senator Catherine Mumma on the rollout of the system across national and county governments, Mbadi said the digital platform is gradually changing how public bodies purchase goods and services.
The Treasury formally announced the e-GP system and instructed all public procuring entities to move their procurement procedures online from July 1, 2025.
Mbadi said the reform was intended to bring public procurement in line with Article 227 of the Constitution, which requires procurement systems to be fair, equitable, transparent, competitive and cost-effective.
He described e-GP as a system that automates procurement procedures, including bid submission, tender opening and tender awarding.
According to Mbadi, the platform reduces human involvement, which has historically been a major channel for corruption, favouritism and requests for facilitation payments.
He said the system is based on the Open Contracting Data Standard, allowing procurement information to be accessible for public review and improving accountability in government expenditure.
Mbadi said the arrangement gives members of the public, suppliers and oversight agencies visibility over tenders from submission to award.
He added that those stakeholders can track the status of tenders at each stage between submission and award.
He told senators that, as of May 2026, 1,543 public procuring entities had been registered and onboarded onto the platform, while 679 entities had published their consolidated annual procurement plans through the system.
He also said procurement transactions worth more than Sh12 billion had been handled on the platform since it was rolled out, compared with about Sh9 billion recorded earlier.
Mbadi said at least Sh12 billion had been processed so far and that the system was closing no fewer than 30 tenders each day.
The Treasury estimates that, once the system is fully operational and widely adopted across government, it could produce savings of up to Sh85 billion through lower procurement costs, greater transparency and improved value for money.
However, Mbadi acknowledged that it remained too soon to measure actual savings from the system, explaining that the available figures were projections rather than independently audited outcomes.
He said no verified total had yet been established for savings generated by the e-GP rollout because the system was still in its early stage of implementation.
The Cabinet Secretary highlighted early benefits, including reduced procurement timelines, stronger audit trails and closer integration with government systems.
The platform has been connected to the Integrated Financial Management Information System (IFMIS), the Kenya Revenue Authority’s iTax platform, the Business Registration Service and population registries to enhance verification and accountability.
Mbadi said the integrations improve user authentication and embed e-GP within the wider government digital infrastructure.
To aid implementation, the Treasury has trained more than 2,000 procurement officers through trainers-of-trainers programmes, while over 40,554 public finance management officers from national and county governments have received virtual training.
The government has also set up a technical support centre at the Kenya Institute of Supplies Management Towers in Nairobi, conducted supplier training through the Kenya National Chamber of Commerce and Industry and established support desks at Huduma Centres across the country.
Despite the progress, uptake at county level remains uneven, prompting concerns over compliance with Treasury directives.
Mbadi told senators that only 20 of Kenya’s 47 counties had at least one active contract on the e-GP system as of May, leaving 27 counties without contracts on the platform at the time of reporting.
The admission carries political weight because the Senate’s constitutional role includes safeguarding devolution and overseeing county governments.
Kisumu was the leading county in use of the platform, recording 467 contracts worth Sh1.39 billion.
Siaya came second with 163 contracts valued at Sh851 million.
Other counties with active contracts included Murang’a, Baringo, Uasin Gishu, Vihiga, Busia, Nandi, Bomet, Samburu, Migori, Homa Bay, Trans Nzoia, Lamu, Elgeyo Marakwet, Kakamega, Tharaka Nithi, West Pokot, Machakos and Kajiado.
Mbadi asked lawmakers to back the procurement reform, calling it a crucial public finance management tool that can reduce corruption and improve accountability.
He said the reform, once fully mature, is expected to deliver value for money and secure savings of up to Sh85 billion.