Kenya to Enforce Mandatory Digital Tenders for All Public Projects

The National Treasury has issued a final directive mandating the full adoption of the electronic Government Procurement (eGP) system starting July 1, 2026. Treasury Cabinet Secretary John Mbadi confirmed that the next financial year will see the end of exemptions for state agencies, effectively digitizing the entire lifecycle of public infrastructure and supply contracts.

Speaking during an interview on the evening of Sunday, April 12, the Cabinet Secretary emphasized that the government is focused on closing procurement loopholes. These gaps have historically allowed for the drainage of public resources, putting an immense strain on the national treasury. The shift aims to bring transparency to a sector often marred by allegations of inflated costs and irregular tender awards.

The eGP system is designed to be an end-to-end platform, covering everything from initial budgeting to final payment. Under current protocols, while national budgets are uploaded to the Integrated Financial Management Information System (IFMIS), much of the subsequent procurement work remains manual. This hybrid approach has often been cited as a primary source of inefficiency and corruption in the awarding of major works.

Cabinet Secretary Mbadi noted that the government had already invested approximately 2.9 million USD (Ksh. 375 million) in the system as far back as 2022. He expressed concern over the delays in implementation, questioning why state departments have been slow to transition despite the significant capital outlay. The new directive is intended to eliminate any further resistance to the digital shift.

Accounting officers and procurement professionals have been put on notice that failure to onboard the system will be met with administrative consequences. While some departments have argued for flexibility, the Treasury maintains that irregularity in accounting is punishable in the same vein as illegality. The system is built to prevent the deletion or amendment of tender documents once they are uploaded, creating a permanent audit trail.

For the construction and infrastructure sector, this mandate means that all bids, evaluations, and contract management will be handled through a centralized digital portal. This is expected to streamline the verification of compliance documents by integrating with the Kenya Revenue Authority and the Business Registration Service.

The enforcement of the eGP system is part of a broader strategy by President Ruto to digitize 80% of government services. By removing the human element from the initial stages of tendering, the Treasury expects to achieve significant savings and ensure that public funds are directed toward completing essential projects on time and within budget.