The National Assembly of Kenya has moved decisively to nullify recent directives issued by the National Treasury of Kenya mandating that all public entities use the Electronic Government Procurement System (eGPS).
A parliamentary committee on implementation declared the circulars “ultra vires” and in breach of key constitutional and statutory procurement provisions.
The decision follows intense scrutiny of Circular No. 04 of 2025, issued on August 12, which required universal adoption of eGPS a move protested by many procuring entities and challenged in court.
The committee’s latest report recommends that two earlier circulars one issued March 26 and another June 5 also be declared nullities for their attempt to force earlier transitions to e‑procurement.
Parliamentarians argue that the directives bypassed legislative scrutiny and contradicted Article 227 of the Constitution .
As well as Section 77(1) of the Public Procurement and Asset Disposal Act, 2015, which allows both manual and electronic procurement methods.
The report emphasised that project funds for the 2024/25 financial year had already been approved and disbursed under procurement plans that did not foresee mandatory eGPS usage.
It urged that implementation proceed under the approved plans, without enforcing the new directives.
While the nullification does not stop the Treasury from revising e‑procurement rollout strategies.
It sends a strong signal about the need for stakeholder consultation and compliance with legal processes.
For public entities and procurement practitioners, the ruling offers short‑term clarity.
It lifts the immediate compulsion to onboard eGPS, while handing opportunity for more inclusive policy reform on digital procurement ahead.
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