Kenya’s bold gamble on E-Procurement: Ending the era of tenderpreneurs
For decades, government procurement in Kenya has been a goldmine for a privileged few. The term “tenderpreneur” once whispered in frustration, has become shorthand for individuals who exploit loopholes in public procurement systems to amass wealth. Now, the state says the days of shadowy deals and manipulated tenders are numbered.
From July 1, the government rolled out a Sh5 billion electronic procurement system (e-GP), a digital platform designed to lock out corruption and restore public trust in how billions are spent.
Backed by the World Bank and International Monetary Fund (IMF), the system is being hailed as a potential game changer in the fight against graft.
The high cost of corruption
Kenya’s procurement system has long been described as the “heart of corruption.” According to the Ethics and Anti-Corruption Commission (EACC), the country loses an estimated Sh600 billion annually roughly Sh2 billion every day to graft. Nearly 70 per cent of this is linked to procurement.
The World Bank estimates that close to 0.9 per cent of Kenya’s GDP is swallowed by corruption each year. In real terms, this means stalled projects, inflated costs and basic services denied to citizens.
Economist Tony Watima says the ripple effect goes beyond lost money. “Tenderpreneurship has replaced genuine service delivery. Instead of government projects multiplying economic value, they are often vehicles for private enrichment. The new system aims to reverse that trend.”
A digital wall against graft
At the center of this push is National Treasury Cabinet Secretary John Mbadi, who insists that no intimidation will derail the e-GP rollout.
“There is no going back. No amount of blackmail and intimidation by corrupt elements who benefitted from the manual system will stop us,” Mbadi declared recently.
Unlike the old model where budgets were uploaded on IFMIS but tendering remained manual, the e-GP is end-to-end from budgeting to final payment. It includes an electronic audit trail, standardizes procurement practices across government, and creates a central database for monitoring.
By last week, more than 1,285 procurement entities and 7,600 suppliers had registered on the platform, with thousands of public finance managers trained to navigate the system.
The pushback
But the transition has not been without friction. Governors and Members of Parliament are pushing back, questioning whether the country is ready for a digital overhaul.
The National Assembly’s Finance and National Planning Committee, chaired by Molo MP Kuria Kimani, argues that the directive was rushed without adequate consultation. Their biggest worry? That small and medium enterprises (SMEs) in rural areas where internet connectivity is weakwill be locked out of government tenders.
“There is a risk of excluding businesses that lack the resources or capacity to operate online,” one MP noted during a heated committee session.
Calls are growing for a phased rollout that addresses infrastructure and training gaps before making the system mandatory.
Why experts say it must succeed
Accountability advocates however, insist the resistance reflects the pain of vested interests rather than genuine concern. The EACC, which now has full access to the e-GP system, describes it as a “game changer” in curbing procurement-related corruption.
For ordinary Kenyans, the stakes are high. Billions lost to shady deals could be redirected to schools, hospitals, and infrastructure. The government estimates that the system could save at least Sh150 billion every year, money that could transform service delivery.
Economist Watima points to history to explain the persistence of graft: “Since the late 1960s, when politicians and civil servants were allowed to engage in private business, public procurement became a playground for self-interest. The e-GP represents an opportunity to untangle that culture.”
A turning point or another false dawn?
Kenya has launched anti-corruption tools before, only for them to be undermined from within. Critics worry that without political will, the e-GP system could meet the same fate.
But this time, the Treasury appears determined. Mbadi has already declared that no government budget will be approved unless it is uploaded into the system.
For now, tenderpreneurs are officially on notice.
Whether this bold digital shift marks the beginning of a new era or simply another battle in Kenya’s long war with corruption remains to be seen. What is clear is that the government is betting big on technology to restore faith in public spending.
And for citizens weary of stalled projects and inflated contracts, even the possibility of a clean break offers a glimmer of hope.
Author: Moureen Koech
Moureen Koech is a passionate Digital Journalist, an adept Agribusiness Writer with a keen eye for news and an impactful story-teller,whose stories provide key value to Agripreneurs and stakeholders in the Agricultural sector
