BUSINESS EXPRESS

Kenya Embraces Digital Procurement to Curb Waste and Misuse of Public Funds

Kenya Embraces Digital Procurement to Curb Waste and Misuse of Public Funds

By Business Express Reporter

In a bid to curb rampant fraud, inflated procurement costs, and the persistent misuse of public resources, President William Ruto has announced that beginning July 2025, all government procurement will be conducted through a digital platform. The move, he said, is designed to guarantee transparency, eliminate loopholes, and ensure accountability in public spending.

Speaking on Friday, June 20, during the conclusion of the Third National Executive Cabinet Retreat at the KCB Leadership Centre in Kajiado County, the President warned that public officials found guilty of mismanaging or misappropriating funds will be held personally accountable.

“We should be able to know who has been awarded what tender, for how much, and how many people participated. And all this must be accessible on a public platform,” Ruto said, citing cases where contracts have been awarded to non-existent facilities such as hospitals that were never built.

He stressed that when audits reveal fraud, the culpable officials must face personal responsibility.

The President also raised concern over conflict of interest in government procurement, noting that some public servants continue to prioritize personal gain over public service. “There is still significant conflict of interest in procurement. Instead of fairly serving the public, you are serving your personal interest. This must stop,” he declared.

To reinforce fiscal discipline, President Ruto announced the creation of a Single Treasury Account that will consolidate all funds from ministries, departments, and agencies, making them visible to the National Treasury. He questioned why public funds remain scattered across multiple bank accounts, where they earn interest for private individuals.

In addition, the government will transition from cash-based accounting to accrual accounting, which will support the adoption of zero-based budgeting—a system expected to drastically reduce waste and enhance resource allocation.

Highlighting Kenya’s broader digital transformation, Ruto said more than 22,000 government services have already been digitized, making them accessible “at the click of a button.” He warned that agencies resisting the shift to online payment systems will face stern action.

On capacity building, the President revealed that public servant training will be restructured to align with the country’s younger, more educated, and more dynamic population. Technology, he emphasized, will be at the heart of a government that is leaner, smarter, more efficient, and more effective.

The President further urged unity within government, reminding members of the Executive to work together as one administration, free from silos and turf wars.

A statement delivered by Deputy President Kithure Kindiki at the retreat reaffirmed these commitments, resolving to strengthen service delivery, enhance government performance, and restore public confidence.

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