Kenya’s digital procurement overhaul is slowing development spending, leaving billions unspent as ministries and suppliers navigate the Electronic Government Procurement System (E-GPS), according to the latest report by the Office of the Controller of Budget.
- •Six months into the 2025/26 fiscal year, the government had spent KSh 2.2 trillion, but ministerial development projects absorbed just KSh 277 billion, a 37% rate.
- •The shortfall is largely attributed to E-GPS, introduced in July 2025 as a mandatory platform for all public procurement.
- •According to the Controller of Budget, staff and suppliers are still learning the new system, which is not fully connected to IFMIS, and delays in support have slowed approvals and project deliveries.
The E-GPS was designed to automate contracting from budgeting to payment, to save the National Treasury KSh 150 billion and curb leakages.
The system has faced resistance from various state quarters, with governors and members of Parliament criticizing the rollout as rushed, technically deficient, and imposed without consultation. In September last year, the High Court suspended the Treasury’s directive for mandatory onboarding, allowing manual submissions to continue alongside digital ones.
Separately, the Controller of Budget notes that most government agencies are now using the automated system for releasing funds, but some areas including public debt, the courts, and county governments are not yet on it. The report stated that bringing these remaining parts onto the system would make fund approvals faster and strengthen the Treasury Single Account.
Meanwhile, the report has also criticized the state's abuse of a constitutional provision that allows for emergency spending beyond the approved budget. In the first half of FY 2025/26, about KSh 115.11 billion was approved for release: KSh 86.29 billion for public debt, KSh 20.16 billion for recurrent ministry spending, and KSh 8.66 billion for development projects.
This surpasses full-year use in the past three financial years and underscores weaknesses in budget planning and execution. The Controller warns that overuse of constitutional provision risks undermining the formal budget process.
