Ruto’s digital crackdown sends tender cartels into panic » Capital News

NAIROBI, Kenya Sep 1 – For decades, government tenders in Kenya have been the playground of a few powerful networks.

From overpriced pens and ghost road projects to inflated hospital equipment, “tenderpreneurs” as they are often called have thrived on connections, kickbacks, and backroom deals.

But that gravy train may be grinding to a halt.

On July 1, 2025, the government switched all procurement to a new online system known as the Electronic Government Procurement (e-GP) platform.

From now on, every ministry, state agency, and county government must buy goods and services digitally.

President William Ruto has made it clear that “there will be no turning back.”

At the heart of the reform is corruption.

President Ruto argues that billions of shillings have been stolen through inflated contracts and fake suppliers.

“Many people are used to getting corrupt tenders. Something worth two shillings, we buy for ten shillings because of cartels,” the President said on August 31, 2025.

“With e-procurement, everybody will see how much an item costs, and who sold it to government. There is no going back.”

Treasury officials estimate the new system could save the country up to Sh50–85 billion every year.

That is money that could instead fund hospitals, schools, and roads.

For the tenderpreneur networks that have built empires on shady deals, these are frightening words.

Their old tricks including fake invoices, collusion with procurement officers, inflated quotations will be far harder to pull off in a transparent digital marketplace.

The e-GP platform requires all suppliers to register online at www.egpkenya.go.ke.

Every bid, contract, and payment is processed through the portal.

It is linked with other government databases including KRA’s iTax system, IFMIS, and the Business Registration Service making it harder for ghost companies and tax dodgers to win contracts.

Suppliers can now track the status of their bids in real time, removing the need for secret “follow-ups” with insiders.

“This is not just technology, it is policy action,” Treasury Cabinet Secretary John Mbadi said during the official launch on April 7, 2025.

“Procurement makes up 60 percent of our national budget. If we fix it, we fix corruption at its root.”

– Resistance and panic –

But the rollout has not been smooth.

Some Governors and MPs have pushed back, warning that the system was rushed.

Council of Governors Chair Ahmed Abdullahi said counties risk service delivery delays if the system stalls.

“If the system doesn’t work, then it blocks service delivery. You can’t delay hospital medicine or emergency water supplies,” he warned.

In Parliament, National Assembly Minority Leader Junet Mohamed dismissed the Treasury circular as “just a piece of paper,” insisting procurement laws cannot be changed by circular.

MPs also argue the system could shut out small businesses in rural areas with poor internet.

Yet Mbadi has stood his ground insisting “only Cabinet can revoke e-procurement, not Parliament.”

This has set the stage for a constitutional showdown between Parliament and the Executive, with counties threatening legal action.

Governors were on Monday set to meet for an extraordinary session to deliberate on the system.

President Ruto has framed the opposition as cartel-driven.

“I know there is resistance from procurement officers and accounting officers, because they want to continue with corruption,” he said.

But Kenyans are left asking if the technology alone can dismantle a culture of corruption that has survived for decades.

Or will the same cartels simply find new ways to exploit the digital system.

For now, one thing is certain that the cosy days of backroom tender deals are over.

The tenderpreneurs who once thrived in secrecy now face exposure in the cold light of a digital marketplace.

And if President Ruto’s gamble works, the collapse of these cartels could mark one of the most significant anti-graft victories in Kenya’s history.