PS Wagunda issues warning over persistent failures in e-Government procurement system

Principal Secretary for the State Department of Public Investments and Assets Management Cyrell Wagunda during a meeting on January 26, 2026 / HANDOUT

The Principal Secretary for the State Department of Public Investments and Assets Management Cyrell Wagunda has issued a stern warning over continued failures in the Electronic Government Procurement (e-GP) system, cautioning that non-performance will attract swift and decisive action.

PS highlighted the critical role of public procurement in converting government expenditure into goods, works, and services that drive economic growth, support public service delivery, and sustain state operations.

Speaking at a meeting with the e-GP Contract Implementation Committee, he said that procurement is a key channel through which budgeted funds are deployed to implement policy and deliver services to citizens.

“The ongoing disruptions to the e-GP system have severely constrained procurement activities across government, causing delays in project implementation, interruptions in the supply of essential goods and services, and operational inefficiencies within State Departments and Agencies,” Wagunda said.

PS Wagunda noted that the effects extend beyond government operations, impacting the wider economy.

According to him, delays and reduced procurement spending have weakened business revenues and cash flows, particularly for small and medium-sized enterprises, contributed to late payments, job losses, and declining household incomes, and ultimately dampened consumer spending and overall economic performance.

He warned that whether arising from systemic weaknesses or deliberate interference, the failures undermine government functionality, private sector activity, and household welfare, posing risks to economic stability and growth.

Describing the situation as unacceptable, the Principal Secretary issued a final notice to all parties responsible for obstruction, non-performance, or deliberate delays in the rollout of the e-GP system.

He warned that any continued interference, withholding of technical cooperation, misrepresentation of progress, or failure to escalate and address risks will be treated as a willful breach of contract and possible sabotage of the national procurement platform.

PS Wagunda directed that comprehensive details be provided immediately on the e-GP contract, including the status of contract variations, implementation progress, and the challenges affecting the system.

He also demanded strict compliance with all contractual deliverables, performance standards, service-level obligations, and frequent progress updates in line with government directives.

He underscored that the e-GP system is a statutory and fiscal reform of national importance and not optional, and any further non-compliance will result in firm and decisive action, regardless of the parties involved.

“This constitutes a final warning,” Wagunda said.

He called for immediate corrective measures and demonstrable, verifiable progress in implementing the system.

In 2025, Treasury CS John Mbadi said the electronic Government Procurement system (e-GP) is essential in promoting transparency and curbing corruption in public spending.

Appearing before the National Assembly’s Committee on Delegated Legislation,  Mbadi urged the committee to reconsider its position and support the initiative, saying the move was in the country’s best interest. He noted that significant sums continue to be lost through manual procurement systems.