NAIROBI — Treasury Cabinet Secretary John Mbadi has made it clear: no supplier will be paid for delivering goods or services to government institutions unless the transaction passes through the e-procurement system launched this month. CS Mbadi issued the warning on Thursday during his appearance before the Senate Standing Committee on Finance and Budget. CS Mbadi said the digital procurement system is a key part of the government’s plan to tighten control on public spending and close revenue leaks.
“If you supply outside the system, you will not be paid,” CS Mbadi said firmly. “This is part of our broader reform agenda, and we are not reversing it.”
The e-procurement platform, introduced in early July, is expected to boost transparency and prevent unauthorized transactions in public offices. Mbadi projected that streamlining procurement through the system could generate up to Ksh 100 billion in annual savings.
The move comes as Kenya grapples with a public debt of Ksh 11.49 trillion as of April 2025. CS Mbadi told senators the debt-to-GDP ratio now stands at 66.5 percent well above the 55 percent benchmark recommended by fiscal risk monitors. Projections show the ratio will remain above target until at least 2029.
CS Mbadi defended the system as critical to keeping the fiscal deficit under control. “We are aligning expenditure with revenue in a way that reduces wastage and enhances accountability,” Mbadi said.
Senators raised concerns about limited awareness of the system across state agencies. Mbadi acknowledged the challenge but assured the committee that training and sensitization are ongoing to avoid procurement delays.
The Treasury CS also clarified the structure of the current securitization framework, which includes the Road Maintenance Levy Fund and Talanta Hela collections. He emphasized that these funds are not treated as contingent liabilities and are earmarked solely for offsetting pending bills.
Kenya’s total public debt includes Ksh 6.16 trillion in domestic borrowing and Ksh 5.33 trillion in external debt. Mbadi said continued reforms in revenue collection and spending discipline are essential to protect the country from deeper fiscal stress.
The Senate committee is expected to follow up on how the e-procurement rollout impacts suppliers, especially small businesses, and whether delays or gaps in implementation could affect service delivery.
About the Author
