The Principal Secretary for the State Department for Public Investments and Assets Management, Mr. Cyrell Wagunda, has issued a final warning to service providers regarding the persistent failures plaguing the e-GP System (Electronic Government Procurement).
In a stern address to the e-GP Contract Implementation Committee, Mr. Wagunda expressed grave concern over the system’s continued non-performance. He signaled that the government’s patience has run thin.
The PS warned that any further disruptions or obstructions in the rollout of the platform would attract “swift and decisive action.” This marks a critical turning point in the digitization of Kenya’s public procurement.
e-GP System Failures Cause Economic Sabotage and Operational Paralysis
The Principal Secretary underscored that the e-GP System is not merely an administrative tool but the central nervous system of government expenditure.
It serves as the primary conduit for deploying budgeted funds to implementing policies and delivering services to citizens.
Mr. Wagunda noted that the ongoing technical disruptions have severely constrained procurement activities across the entire government structure.
The ripple effects are being felt far beyond the State Department, creating a bottleneck that is suffocating the broader economy.
“Delayed and reduced procurement spending has weakened business revenues and cash flows, particularly for small and medium-sized enterprises (SMEs),” Mr. Wagunda stated.
He further explained that these e-GP System failures have contributed to:
- Delayed payments to suppliers.
- Job losses in the private sector.
- Declining household incomes.
- Dampened consumer spending and overall economic performance.
Is the e-GP System Crisis a Breach of Contract or Deliberate Sabotage?
In what was termed a “final notice,” the PS did not mince words regarding the culpability of the parties involved. He warned that the challenges facing the e-GP System are placing the National Treasury in a negative light.
Mr. Wagunda cautioned the service provider, project manager, and other responsible parties that their current conduct is inconsistent with their contractual obligations.
He explicitly stated that any deliberate delays, withholding of technical cooperation, or misrepresentation of progress would be treated as a “willful breach of contract.”
More severely, it could be seen as “possible sabotage” of the national procurement platform.
“The prevailing conduct is inconsistent with the duty to act in good faith and in the best interests of the government,” he warned.
Moving to immediate corrective measures, the Principal Secretary has directed that comprehensive details be provided regarding the e-GP System contract.
This includes a full status report on all contract variations and current implementation progress.
Mr. Wagunda emphasized that the e-GP System is a statutory and fiscal reform of national importance and is not optional. He demanded full compliance with all performance standards and service-level obligations immediately.
“This constitutes a final warning,” Wagunda concluded, calling for demonstrable and verifiable progress.
The ultimatum places immense pressure on the technical partners to resolve the glitches immediately or face the full force of legal and administrative action by the Public Procurement Regulatory Authority.
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