The National Assembly has struck down a Treasury directive that sought to make the electronic Government Procurement System (e-GPS) the sole method for processing government tenders, ruling the move unconstitutional and beyond legal authority.
On Tuesday evening, MPs approved the adoption of the Committee on Delegated Legislation report, fully withdrawing Public Procurement Regulatory Authority Circular No. 04/2025. The motion, seconded by Minority Leader Junet Mohamed, was approved unanimously.
The committee, chaired by Ainabkoi MP Samuel Chepkonga, pointed out that the circular was attempting to bypass parliamentary oversight by placing the nation under new procurement standards without the basis of law.
It held that the directive was in contravention of Section 77 of the Public Procurement and Asset Disposal Act, which permits government entities to tender manually or electronically.
The report also noted that the circular violated various constitutional provisions, including Articles 2(1) and (2), 10, 27(2), 94(5), and 227. The sections address supremacy of the Constitution, national values and principles of governance, equality and fundamental rights, Parliament’s exclusive lawmaking role, and procuring in such a way that it is fair, competitive, transparent, and cost-effective.
“The Circular is in contravention of sections 9 and 77 of the Public Procurement and Asset Disposal Act, Cap. 412C relating to the function of the Authority which do not extend to creating binding obligations and the recognition that tender submissions may be made in either manual or electronic form, and contravention of sections 2, 6, 11, 13, 22 and 24 of the Statutory Instruments Act, Cap 2A relating to interpretation of a statutory instrument, submission of a regulatory impact statement on each statutory instrument, requirement for publication and tabling of a statutory instrument before Parliament, and exercise of powers in making statutory instruments,” the committee stated.
Treasury Cabinet Secretary John Mbadi had launched the e-GPS system on April 7, 2025, intending to boost accountability, efficiency, and value for money in government procurement.
The platform was designed to enhance transparency, fairness, and competitiveness, aligning with directives from President William Ruto’s November 2024 State of the Nation Address, which called for a full rollout by the first quarter of 2025.
Under the now-annulled circular, only tenders submitted through the e-GPS platform would have qualified for payment, and all existing contracts were required to be registered with the Public Procurement Regulatory Authority (PPRA).
While seconding the motion to annul the circular, Minority Leader Junet Mohamed argued that it was legally invalid.
“If you want to use electronic means, you change the law. You can’t change the law through a circular. The circular is just a piece of paper,” he said.
He added, “This reminds me of a circular issued by the former Central Bank of Kenya governor that when you want to withdraw over Sh1 million, you have to explain. This is a warning to the Executive that the only body the Constitution has given power to make law is Parliament.”
Junet urged MPs to reject the circular immediately, ensuring that procuring entities could continue using manual systems without restrictions.
