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New E-Procurement system to start in July with Sh700 million funding

Business · Tania Wanjiku · June 12, 2025
New E-Procurement system to start in July with Sh700 million funding
Treasury sends Sh15.1 billion lifeline to counties, but delay fears remain.PHOTO/Cutting Edge Technologies
In Summary

The funds were announced by Treasury Cabinet Secretary John Mbadi while presenting the budget estimates in the National Assembly on Thursday.

The government has set aside Sh700 million in the 2025/26 budget to implement the Electronic Government Procurement (eGP) system, a move aimed at closing corruption loopholes and boosting transparency in public procurement.

The funds were announced by Treasury Cabinet Secretary John Mbadi while presenting the budget estimates in the National Assembly on Thursday.

“The government is committed to transparency and accountability in procurement. In this regard, I have proposed an allocation of Ksh700 million for rolling out the implementation of the Electronic Government Procurement (eGP),” Mbadi said.

The eGP system, officially launched on April 7, 2025, at the Kenya School of Government, is designed to handle all government procurement processes online—from tender submissions and bid bonds to evaluations and contract awards.

This initiative is part of the wider Digital Superhighway Agenda, which aims to move 80 percent of public services online.

The rollout is scheduled for July, with 400 suppliers and staff from both national and county governments already trained to use the platform.

From then on, all individuals and companies seeking government tenders will be required to use the eGP system.

The World Bank has confirmed that the adoption of the eGP system is a key condition for unlocking further loans to Kenya.

It stated that the government’s commitment to economic reforms, including this procurement system, is essential for continued financial support.

The 2025/26 national budget totals Sh4.29 trillion, to be funded through revenues, loans, and grants.

Total projected revenue collections, including appropriation-in-aid, stand at Sh3.321 trillion.

Out of the total expenditure, Sh3.134 trillion will cover recurrent spending, while Sh693.2 billion is reserved for development projects.

County governments are expected to receive Sh474.9 billion in allocations.

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