The government has suffered a major setback after the High Court temporarily suspended the mandatory implementation of the e-procurement system across ministries, state departments, and agencies. The directive, which sought to make e-procurement the sole platform for tendering and supply chain management, has been challenged in court by stakeholders who argue that the move was rushed and failed to consider critical gaps in infrastructure and preparedness.
Justice Bahati Mwamuye directed that public entities are free to receive and submit tender documents either electronically or manually, provided they comply with the Public Procurement and Disposal Act.
The Court’s Ruling
In its ruling, the court issued conservatory orders stopping the enforcement of the directive until the matter is fully heard and determined. The orders mean that government institutions can continue using both manual and digital procurement methods for now, provided they comply with the Public Procurement and Disposal Act.The decision therefore is a blow to the National Treasury, which had announced that the system would become compulsory in a bid to enhance transparency, curb graft, and seal loopholes in public procurement.
The court further ordered the National Treasury and the Public Procurement Regulatory Authority (PPRA) to accept both electronic and manual tender submissions without bias
A conservatory order be and is hereby issued requiring the Cabinet Secretary – National Treasury & Economic Planning AND the Public Procurement Regulatory Authority to accept both electronic and manual submissions of tender documents and to process the same equally irrespective of their form of submission and provided that they meet the criteria set out in Section 77 of the Public Procurement and Disposal Act
Justice MwamunyeStakeholders’ Concerns
Petitioners challenging the directive have raised several issues, including:
- Inadequate training and capacity-building for procurement officers.
- Poor internet connectivity in some counties, making the system unreliable.
- Potential exclusion of small and medium enterprises (SMEs) that lack the resources to fully adapt to the new system.
They argue that while the e-procurement platform is a progressive tool, its forced adoption without addressing these challenges risks stalling service delivery and unfairly locking out certain suppliers.
Government’s Position
The government has consistently defended the e-procurement system as a key reform to modernize public financial management. Officials maintain that digitization is critical in fighting corruption and ensuring value for money in state projects. However, the suspension now forces the state to go back to the drawing board to ensure that its roll-out plan meets legal, technical, and logistical thresholds.
Conclusion
The case is set to be mentioned in the coming weeks, and the court will determine whether the suspension will be upheld or lifted. In the meantime, government entities retain the discretion to use either manual or digital systems for procurement.
The ruling has sparked debate on balancing technology-driven reforms with inclusivity and readiness, highlighting the need for government to address practical challenges before enforcing sweeping policy changes.
