Why CS Mbadi is at war with MPs

National Treasury Cabinet Secretary John Mbadi yesterday insisted that the government will proceed with the implementation of the e-GPS electronic procurement system despite mounting concerns over the paralysis it has caused due to its rushed rollout.

Mbadi, at the same time, clashed with MPs as he maintained that the government had flouted no law, court order or contravened resolutions of the National Assembly – all of which had scrapped the mandatory use of the e-GPS system by procuring entities on grounds that it contravenes the Constitution.

While a bullish Mbadi put up a spirited defence of the new system introduced by government through a controversial circular to Ministries, Departments and Agencies (MDAs), MPs accused him of usurping the law and mutilating the Constitution, and questioned the ownership of the new system.

During the heated sitting of the National Assembly Committee on Implementation, Mbadi submitted that the country was in a tight fiscal space and there was need to ensure prudent use of financial resources. Procurement, he said, was an area affected by financial pilferage, hence the need to implement the system.

“The government is very clear that the manual procurement system is prone to abuse and corruption and we will not use it. We as a country have gone digital in the making of our passports – which is our most sensitive document – yet we can’t open up to digitise our procurement at this day and age. The calls for retention of a manual system is a fallacy and is part of a pushback,” said Mbadi.

He pointed out that so far, 1,379 procuring entities had been registered under e-GPS, 10,000 suppliers, 140 trainers of trainees (ToTs) supporting the rollout of the system, and a further 14,000 persons trained from various procuring entities.

Mbadi also submitted that the system had already been piloted in 12 procuring entities, including the National Treasury, State Department for ICT, State Department for Public Service, Office of the Auditor General, KenGen, Kenya National Highways Authority (KeNHA), Moi Teaching and Referral Hospital (MTRH), Ethics and Anti-Corruption Commission, Public Procurement and Regulatory Authority, Makueni County Executive as well as Elgeyo Marakwet and Busia County Executives.

“As directed by the government policy on digitisation as an enabler of, among others, the Bottom-Up Transformation Agenda (BETA), the National Treasury will continue to implement this key reform agenda.”

The parliamentary team, however, sought to know why Mbadi was acting based on PPRA Circular No 04/2025 on the mandatory use of e-GPS by all procuring entities, which they said contravened the Constitution and Section 77 of the Public Procurement and Asset Disposal Act, Cap 412C. In August, MPs had annulled the circular.

“It does not do what the government thinks. The law says that procurement shall be done both manually and electronically…if you feel that e-GPS should be the only system then bring amendments to the House and we will act on them, but do not allow World Bank to make laws on behalf of this country,” stated Embakasi West MP Mark Mwenje.

Kipkelion West MP Hillary Kosgei warned that government activities now risked stalling should the Treasury not adopt a phased approach to implementing the system and allow manual procurement in far-flung areas without internet connectivity or power such as Mandera.

He also noted that the disbursement of billions under programmes such as the National Government Constituency Development Fund (NG-CDF) had stalled due to the government’s insistence that it must be done through the e-GPS system.

Trans Nzoia Woman Representative Lilian Chebet asked: “Why the insistence on the new system? Why not just retain the e-procurement system that existed before and which had provision for suppliers of below Sh3 million?”

But in his response, CS Mbadi argued that the government favoured the electronic procurement system as opposed to the manual one as it sought to ensure transparency and fairness in government procurement.

“In this country if you do not know who knows whom, you cannot procure and that is the reality…if you also give people options (of procuring either manually or electronically) they will not move from manual because it is serving their interests and that is why the government needs to push for e-GPS,” he stated.

He reiterated: “In counties, there are suppliers complaining of not being paid for three years because the manual system allows counties to requisition funds to pay X but pay Z. With this system, that will not be possible.”

And to counter queries by the committee on whether the system was owned and operated by a foreign firm based in India, he explained that the system was acquired for Sh387 million and was procured in 2022.

Mbadi noted that the system was jointly developed by two firms, one Kenyan and the other Indian, which were to roll out and implement the system within three years before handing over everything to the government – including the source code. However, due to the delay in implementation, the government will be forced to renew the contract and the system will only be handed over after three years.

Relentless, the lawmakers pressed on.

“How much have you been paying monthly to maintain the system? I also expected that there would have been a phased rollout of the system and inclusion of experts in the process,” remarked Kiminini MP Kakai Bisau.

MP Mwenje further posed: “So are you going to comply with the resolution of this House on suspending use of e-GPS or not, so we can go do our report and meet on the other side of the floor of the House?”

To which Mbadi said: “In areas like Samburu, Mandera and others where you find there are challenges, we will make provisions for local suppliers to procure manually, but let us not kill a good idea due to a small issue. We want to ensure that e-GPS is the primary system.”

The CS also clarified that the 2024/2025 NG-CDF disbursements should be accessible to MPs through the old system, as only budgets for 2025/2026 are required to be onboarded on the e-GPS.

The committee has now ordered Mbadi to furnish it with documents detailing the procurement details of the e-GPS system, the shareholders and the vendors.