Institute of Public Finance

Today, we convened a high-level meeting bringing together the National Treasury (@KeTreasury) led by Cabinet Secretary, @JohnMbadiN, development partners, and public finance stakeholders to advance the implementation of Electronic Government Procurement (eGP) as a key public financial management reform.

Digitalization of public procurement processes through the eGP is a key element of Kenya's PFM reforms. IPF role is to complement government leadership by supporting the government's eGP agenda as a wider governance and public financial management intervention that aims at improving transparency, accountability, efficiency, value for money, and fiscal discipline in the use of public resources.

🗞️ 🔵 IPF Weekly Update: New Budget Analyses + eGP Review + Newspaper Round-Up

🆕 Is the FY 2027/28 budget built on ambitious assumptions?

Our new outlook finds spending outpacing revenue, widening the deficit to KSh 1.35 trillion (5.9% of GDP).

🆕 How well did counties execute their FY 2025/26 budgets?

Our analysis finds a KSh 51.5 billion shortfall, with development spending at just 54% of budget.

🤝 IPF and the National Treasury reviewed Kenya's progress on Electronic Government Procurement (eGP).

🔝 This Week's Top Story:

📌 IMF asks Kenya to broaden tax base ahead of December talks

👉 Read the full update: mailchi.mp/ipfglobal/new-…

🔵 | How well did counties execute their 2025/26 budgets?

🆕 Our new analysis focusing on counties is now out!

Snapshot ↘️

Own-source revenue (OSR) increased by 43%, from KSh 67.3 billion in FY 2024/25 to KSh 96.1 billion in FY 2025/26, accounting for 16% of the counties’ revenue.

However, with the shift to accrual accounting, some counties, such as Mombasa, recognized revenue before they received it, which may
overstate actual collections and revenue growth.

Read more ⤵️

ipfglobal.or.ke/wp-content/upl…

🔵| eGP is a core public financial management reform

IPF CEO @DWNdirangu remarks ↘️

💬 "Public procurement is where public money turns into public services. It is where budget allocations become medicines in our hospitals, books in our classrooms, roads that connect communities, and infrastructure that drives our economy."

💬 "That is why, at IPF, we do not see e-GP as just an ICT project. We see it as a core public financial management reform: one that must improve how public resources are planned, committed, spent, accounted for, and turned into services for citizens."

@KeTreasury @JohnMbadiN

🔵 Cabinet Secretary @JohnMbadiN on what the measure of success would be for Kenya electronic Government Procurement (eGP) implementation.

💬 "...Successful implementation cannot be measured by the number of institutions registered alone. The real measure of success is the extent to which public entities consistently use the system, procurement becomes more competitive and citizens obtain better value from public expenditure."