Streamlined digital procurement system proven to combat corruption effectively

The Electronic Government Procurement (E-GP) system, a virtual governance tool designed to automate the procurement process in government, is set to revolutionise public procurement in Kenya. This system is widely considered as world best practice for public financial management systems.

The E-GP system aims to integrate the iTax system with Business Registration Services systems and Ifmis, streamlining the procurement process and enhancing efficiency. The values of transparency, accountability, efficiency, inclusivity, and oversight are envisioned to guide public procurement in Kenya, combating the festering crisis of corruption that has long plagued the sector.

Opponents of the E-GP system have insisted on retaining their tendering committees, expressing concerns about automating the procurement process. However, stakeholders like governors and MPs have raised legitimate concerns about the system, which are expected to help refine and implement it effectively.

The low internet penetration rate is seen as an incentive for the government to work towards closing the digital divide. With a projected penetration of 48% and around 27.4 million users, internet connectivity and internet penetration are challenges in the implementation of the E-GP system.

Mr. Kidi, the convener of the Inter-Parties Youth Forum, supports the implementation of the E-GP system as part of the anti-corruption crusade in public procurement. He can be contacted at [email protected].

The integration of these systems is expected to close loopholes where fake directors and/or proxies are used to hide real identities of beneficiaries. It is also intended to help deal with concealment and layering, tactics used by corrupt individuals to evade law enforcement.

Phantom companies, which are special purpose vehicles of grand corruption in government, may be more easily identified with the implementation of the E-GP system. Conservative estimates suggest that the E-GP will help Kenya save up to Sh85.9 billion a year.

Countries like Germany and Czech Republic, which engage in various procurement initiatives, serve as examples of the benefits of the E-GP system. Specific information about governments that have joined an e-Government Procurement System is not provided in the search results, but countries such as Chile, South Korea, and India are among those that have embraced the system.

For updates and more information, follow The Standard channel on WhatsApp. The E-GP, when fully rolled out, is expected to help achieve these values of transparency, accountability, efficiency, inclusivity, and oversight, transforming public procurement in Kenya.