Controller of Budget Margaret Nyakang’o has criticised the National Treasury for mishandling the rollout of the electronic government procurement system (e-GPS), warning that poor change management may be fuelling resistance among procuring entities.

While the CoB backed the shift to electronic procurement, she said the rollout was chaotic and poorly planned.

Her remarks come amid growing debate over the e-GPS, which both state agencies and suppliers have struggled to adopt since its launch on July 1. The government had directed that all procurement for the 2025/26 financial year be conducted exclusively through the platform.

So far, many procuring entities have been unable to upload their budgets and procurement plans, stalling procurement across ministries and agencies.

Nyakang’o weighed in on the rollout, noting that although the shift from manual procurement to e-GPS was poorly managed, procuring entities have no choice but to embrace the system.

“I can tell you, because I am an expert in change management, that is not how you implement change. You must implement change in a certain way; there are certain things you must do to implement change,” she said, adding that the government needed an electronic procurement system.

“That said, we need e-GPS. Even though the change has not been managed properly and therefore, it is going to create a lot of problems, we must make the best of a bad situation.”

Nyakang’o urged entities to stop resisting the system, comparing the backlash to early opposition to the Integrated Financial Management Information System (IFMIS).

“Do not keep protesting, saying it is going away. It is not going away. People have complained about IFMIS and have been complaining to date. Did we stop using it? Please get used to e-GPS. We are all in it, and the sooner we start using it, the better,” she said.

The system is expected to complement IFMIS, which automates budgeting, expenditure tracking, payment processing and reporting, but did not digitise the tendering process.

Rolled out in 2005, IFMIS was met with resistance from county governments and critics who argued it was flawed and open to manipulation. The government, however, maintained that the system was nearly foolproof, insisting rejection of IFMIS stemmed from sabotage and resistance by those benefiting from manual processes.

In 2015, the government admitted hackers had breached IFMIS and authorised illegal payments.

The Auditor General’s 2023/24 report also faulted IFMIS for inadequacies that often led to the loss of public funds. The e-GPS is expected to go further by digitising the tendering process.

Despite this, the rollout has had a faltering start, with many state agencies yet to procure anything since July 1. Several entities struggled to onboard, with most only managing to access the system this week.

Public Investments and Assets Management Principal Secretary Cyrille Odede said all ministries, departments, agencies, independent commissions and offices have now been registered on e-GPS, paving the way for end-to-end electronic procurement.

He instructed accounting officers to check the uploaded data to ensure it matches the approved budgets.

“The National Treasury hereby confirms that all ministries, state departments and independent commissions and offices have been registered in the e-GP system in readiness for end-to-end electronic processing of procurement of goods, works and services,” Odede said in a circular dated September 1, 2025.

He added that budget verification is required for each line item before procurement planning begins.

“The purpose of the circular, therefore, is to request all accounting officers to undertake validation of budgets uploaded in the e-GP platform to ensure that there are no discrepancies between the approved budget and the uploaded budget,” he explained.

Treasury Cabinet Secretary John Mbadi emphasised that no public office will be allowed to buy goods or services outside the e-GP system, which he says is designed to improve transparency in government spending.

The system, launched on July 1, also requires suppliers to register. As of 1st September, 1,420 government entities had joined, alongside 8,225 service providers. Registered entities include county governments, educational institutions, municipalities, water and sewerage companies, and public funds.

Independent bodies such as the Independent Policing Oversight Authority (IPOA), the Independent Electoral and Boundaries Commission (IEBC), the Kenya Institute for Public Policy Research and Analysis, the Kenya Institute of Mass Communication, the Competition Authority of Kenya, the Development Bank of Kenya, and Kenya Pipeline Company have also complied.

Odede said adopting the e-GP system will lower the cost of goods, works, and services while improving accountability and openness in procurement.

However, county governments continue to resist the system. Through the Council of Governors, they rejected the Treasury’s directive, claiming the system is not reliable and warning against threats of withheld funds.

“Article 62 of our Constitution is not inferior to circulars issued by the National Treasury Cabinet Secretary. He cannot threaten us,” said Council of Governors Chairman and Wajir Governor Ahmed Abdullahi.

“The system is not working. No one can shove it down our throats,” he added.