President Kenyatta launches e-procurement system

August 13, 2014
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Speaking in Nairobi during the launch which was also attended by Deputy President William Ruto, President Kenyatta said e-procurement will ensure public financial resources are used prudently and for the intended purposes/FILE
Speaking in Nairobi during the launch which was also attended by Deputy President William Ruto, President Kenyatta said e-procurement will ensure public financial resources are used prudently and for the intended purposes/FILE
NAIROBI, Kenya, Aug 13 – President Uhuru Kenyatta has launched the electronic procurement and payment system with a call to all public servants to embrace transparency, accountability and prudent use of public resources to ensure Kenyans receive quality services.

Speaking in Nairobi during the launch which was also attended by Deputy President William Ruto, President Kenyatta said e-procurement will ensure public financial resources are used prudently and for the intended purposes.

“Over the years, we have heard complaints from Kenyans that the government is being overcharged for goods and services that it purchases. By introducing transparency and accountability through e-procurement, we expect to eliminate the abuse of our procurement system,” President Kenyatta said.

He said since procurement of goods and services constitute about 50 percent of the government’s annual budget, e-procurement will save substantial financial resources and help to instil confidence among taxpayers that they are getting value for their money.

Emphasising the benefits of e-procurement, President Kenyatta said it will strengthen the government-supplier relationship by providing easy access to information, documentation, simplify the bidding process and ensure cost saving for the Government and taxpayers.

“Through the automation of public financial processes, the Integrated Financial Management Information System (IFMIS) has provided an interlinked system of internal controls providing clear audit trails and identification of the originator of all transactions,” he said.

He pointed out that the roll-out of electronic procurement system through the IFMIS “Procure to Pay” module introduces a new era to Government procurement by bringing to an end manual procurement challenges that the country has experienced in the past.

“This will make Kenya a more attractive destination for investment.
Indeed, we take great pride in being the first African country to automate end-to-end procurement and payment processes in a devolved government system,” President Kenyatta said.

To ensure youth, women and persons living with disability benefit from Government procurement, the President said every public institution must comply with the 30 percent preferential procurement policy to provide opportunities to the target groups.
He urged the private sector to play their part in the implementation of e-procurement to provide opportunities to the youth, women and people with disability.

President Kenyatta also commended modernisation of the public financial management by the National Treasury, citing the establishment of a Treasury Single Account (TSA) from which all payments shall be processed in compliance with the Public Financial Management Act (2012) as one of the key reforms in the financial sector.

Previously, government ministries managed fragmented banking arrangement that was not consistent with the principle of prudent cash management.

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