MPs probe Sh3bn tech contract deal
MPs questioned whether the new project was another example of the government handing control of national systems to private entities.
Members of Parliament have raised alarm over the government’s growing reliance on private vendors to run critical public systems, following revelations that a new Sh3 billion e-procurement platform will replace parts of the current financial management infrastructure.
During a tense session with the National Assembly Finance Committee, Treasury PS Chris Kiptoo said the new system, already being piloted in 10 state agencies, will take over procurement functions from the Integrated Financial Management Information System (IFMIS).
He said IFMIS lacked key features and could not support the scale of reforms needed. "We aim to streamline procurement having realised it is where we have a problem. The long-term impact outweighs the initial cost," Kiptoo told the committee.
But MPs questioned whether the new project was another example of the government handing control of national systems to private entities.
They pointed to other digital platforms such as the e-visa service, e-Citizen portal, and the Social Health Authority (SHA) which they said are operated under opaque contracts that give vendors the upper hand.
Molo MP Kuria Kimani said the Ifmis upgrade had already consumed huge resources with little to show. "The amounts that have gone into this system are colossal. I hope we are not getting into another challenging one," he said.
Kesses MP Julius Ruto asked why the government was abandoning a system it had heavily invested in.
"Why do we procure a new system when we have spent a lot of money on Ifmis? Isn’t this an expensive venture? Isn’t the customisation expensive?" he asked.
The lawmakers expressed fears that the new system could mirror other government tech deals where vendors retain ownership, dictate terms, and collect revenue from services meant to be under public control.
Auditor General Nancy Gathungu has repeatedly flagged these contracts, warning that the state’s limited oversight creates room for fraud, service failure and data risks.
Only Kitui Central MP David Mboni backed the new system, saying procurement reforms were overdue and necessary.
The debate reflects a growing pattern in government tech projects — costly platforms rolled out without fixing or improving existing systems, leaving public funds stretched and long-term control unclear.
Just days earlier, the Education Ministry announced the rollout of a new Kenya Education Management Information System (KEMIS) to replace the current Nemis, raising further concern over what MPs see as a cycle of unnecessary digital replacements.
