The National Treasury has unveiled a new e-procurement system that sets strict price limits for goods and services bought by State agencies, county governments, and other public institutions. The move aims to eliminate inflated costs and seal procurement loopholes.
Under the system, prices for items will be regularly updated based on market surveys and locked into the platform, preventing procurement officers from approving payments above the fixed rates.
“They will be put in the system. So, if this pen is to cost Sh100 in the market, no procurement person can go beyond that price. The system will not take it,” said Joel Bett, programme coordinator at the Public Financial Management Reforms Secretariat.
Previously, price caps for common items were set manually by the Public Procurement Regulatory Authority. However, the guidelines were often ignored, leading to shocking cases of inflated costs, such as a wheelbarrow purchased for Sh109,000, a condom dispenser for Sh32,000, and a TV for a youth project at Sh1.7 million. Even basic supplies like pens and paper were billed at up to four times their market value.
Bett noted that some suppliers inflated prices to offset losses from delayed government payments, with some waiting years for settlement.
The Treasury believes the digital system, supported by automated exchequer releases, will curb overpricing and ensure timely payments to suppliers.
The platform, launched in July 2025 following President William Ruto’s directive to digitize procurement, is expected to enhance transparency, cut wastage, and reduce corruption in public tenders.
