President William Ruto's administration's shift to a fully digital procurement system has slowed the implementation of development projects and delayed the execution of budgeted activities.
Controller of Budget Margaret Nyakang’o has revealed that the pattern plays out across ministries, departments and agencies.
In her latest report covering the first nine months of the 2025-26 financial year, Nyakang’o said the mandatory adoption of the Electronic Government Procurement System (e-GP) has posed operational and technical challenges.
She says in the report, which covers the period between July 1, 2025 and March 31, 2026, that the system has hampered procurement processes and affected budget execution
The Controller of Budget says delays in the procurement of goods and services were among the key factors that undermined budget implementation during the review period.
"A review of key performance indicators from financial and non-financial reports submitted to the office by MDAs as at March 31, 2026 indicates that some budgeted activities were lagging," the report states.
The delays were largely linked to the government's directive requiring all ministries, departments and agencies to use the e-GP platform from July 1, 2025.
The electronic procurement platform was introduced as part of reforms aimed at enhancing transparency, efficiency and accountability in government spending by moving tendering and contract management processes online.
However, while the system is expected to streamline procurement and reduce opportunities for corruption, Nyakang’o notes that its implementation has not been without challenges.
Among the major concerns raised by ministries and agencies is inadequate technical capacity among users and a steep learning curve for both government officers and suppliers.
Many procurement officers and suppliers are still struggling to navigate the new platform, resulting in delays at various stages of the procurement cycle.
The Controller of Budget also highlighted a critical gap in the integration of the system.
It emerged that the e-GP platform has not yet been fully integrated with the Integrated Financial Management Information System (IFMIS), which manages government finances.
As a result, procurement transactions initiated through the e-GP platform are not automatically linked to budget commitments.
"For example, once a Local Purchase Order has been created, the e-GP system does not commit funds because it is not integrated with IFMIS," the report says.
The disconnect between the two systems has created additional administrative hurdles and slowed the processing of procurement transactions.
The report further identifies delays in approvals within the procurement workflow as another bottleneck.
Users reported that approvals at different stages of procurement often take longer than expected, slowing the award of tenders, contract signing and the acquisition of goods and services.
Low supplier participation on the platform has also emerged as a challenge.
The report says some government entities have reported weak responsiveness from suppliers to tenders and requests for quotations published through the e-GP system.
This has affected competition and delayed the conclusion of procurement processes in some institutions.
In addition, intermittent network outages and system performance challenges have affected accessibility and disrupted transaction processing.
The Controller of Budget says users have also complained about delays in resolving technical issues once they are reported, further affecting procurement timelines.
The findings come at a time when the government is pushing for greater digitisation of public services and tighter controls on public spending.
Procurement remains one of the largest areas of government expenditure and has historically been vulnerable to inefficiencies, wastage and corruption.
The challenges associated with the e-GP rollout have contributed to broader concerns over budget implementation during the financial year.
Nyakang’o identified delays in procurement, stalled multi-year projects, accumulation of pending bills and increased use of supplementary budgets among the major issues affecting implementation of government programmes.
To address the procurement challenges, the Controller of Budget has recommended targeted capacity-building programmes for public officers involved in procurement.
She said training should focus on critical stages of the procurement process, including opening of quotations and tenders, evaluation, contract preparation and receipt of goods and services.
Nyakang’o also called for intensified sensitisation of suppliers to improve participation and responsiveness on the digital platform.
"Training should also focus on change management to curb resistance from key stakeholders," the report states.
The Controller of Budget further urged the National Treasury to provide continuous technical support and fast-track measures aimed at ensuring full implementation of the e-GP system.
According to the report, addressing the current challenges will improve procurement efficiency, reduce delays and support timely implementation of government programmes and development projects.
"The National Treasury should offer continuous technical support to ensure the full implementation of the system. This will enhance procurement efficiency, enabling the timely implementation of planned activities," Nyakang’o said.
