The government has suffered a significant legal setback after the High Court suspended the compulsory use of the electronic Government Procurement System (e-GPS).
In a ruling delivered on Monday, Justice Bahati Mwamuye declared that public entities are free to submit and receive tender documents either electronically or manually, as long as they adhere to the Public Procurement and Disposal Act.
“A conservatory order is hereby issued requiring that all Public Procurement Entities comply with Section 77(1) of the Public Procurement and Disposal Act,” said Justice Mwamuye at the Milimani Law Courts in Nairobi. “Tender documents may be submitted in writing, either electronically or manually, provided they meet the legal requirements.”
The court further ordered the National Treasury and the Public Procurement Regulatory Authority (PPRA) to treat both manual and electronic tender submissions equally.
“A conservatory order is also hereby issued requiring the Cabinet Secretary for the National Treasury and Economic Planning, along with the Public Procurement Regulatory Authority, to accept and process both electronic and manual tender submissions equally, as long as they comply with Section 77 of the Act,” the court added.
The e-GP system is part of a wider set of procurement reforms supported by the International Monetary Fund (IMF) aimed at enhancing transparency and efficiency in public procurement. Initially scheduled for implementation in 2024, Treasury Cabinet Secretary John Mbadi had pushed for full adoption by all government departments this week.
However, the system has faced strong opposition from various stakeholders, including the National Assembly and the Council of Governors. Critics argue that the rollout has been rushed and lacks adequate preparedness.
County governors have particularly raised concerns, warning that premature implementation could disrupt essential services. Only three out of 47 counties participated in the system’s pilot phase, and all reported significant operational challenges.
Despite the opposition, President William Ruto has stood firm on the e-GP rollout. He has dismissed critics as individuals benefiting from inefficiencies in the old system.
“Procurement and accounting officers are resisting this system because they have been profiting from the old ways,” President Ruto said. “No amount of blackmail or intimidation will stop us from implementing electronic procurement. Any official unwilling to comply is free to resign.”
ALSO READ : CBK Licenses 27 More Digital Credit Providers, Total Now at 153
.){kind=link}