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Governors warn of salary delays as e-procurement rollout stalls payments

By Chemtai Kirui, NAIROBI,

 

County governors have warned of delays in paying staff salaries, saying technical problems in the rollout of the government’s electronic procurement (e-GP) system are holding up transactions and risk disrupting essential services.

 

The e-GP, an online platform developed by the National Treasury to digitise procurement across national and county governments, became mandatory for all procurements on July 1 after a limited pilot. Authorities say it will cut corruption, improve transparency and save up to Sh85 billion annually by reducing waste and manual errors.

 

The Council of Governors (CoG), however, says the system is riddled with mapping errors that have locked counties out of funds needed to pay staff and contractors.

 

“The system has paralysed county operations. If not addressed, health facilities, garbage collection and other essential services will be affected,” CoG chair Ahmed Abdullahi said.

 

Abdullahi, who was speaking during the 28th Ordinary Session of the Intergovernmental Budget and Economic Council (IBEC) at the Deputy President’s official residence in Karen, added that fuel suppliers and other vendors have already suspended services over unsettled bills.

 

Governors follow proceedings as Council of Governors Chair Ahmed Abdullahi speaks during the 28th Ordinary Session of the Intergovernmental Budget and Economic Council (IBEC) at the Deputy President’s official residence in Karen, Sept 30, 2025. Photo/GK

Nairobi staff were earlier this month told to stay home as workers awaited pay, while unions warned that repeated delays could spark industrial action. Other counties said contractors and health workers risk going unpaid for weeks.

 

The e-GP integrates procurement with other government systems, including the Integrated Financial Management Information System (IFMIS) and tax registration, to create audit trails and eliminate ghost vendors.

 

While Treasury officials insist the reforms will streamline payments in the long term, governors say the rollout was rushed.

 

Senators have pressed the Treasury to explain whether the disruption stems from the new system or delayed disbursements.

 

The CoG has urged the Treasury and system administrators to urgently review the platform and train counties, warning that prolonged disruptions could paralyse frontline services.

 

Governors also repeated calls for higher equitable share allocations to ease growing salary and service obligations.

 

Unions have warned they may not rule out strikes if the salary delays persist in coming weeks.

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