NAIROBI: The National Treasury has rolled out IFMIS e-Procurement to State corporations on a pilot basis. The initial phase that commenced earlier this week, is expected to see the automated procurement system deployed in 19 State corporations housed by the National Treasury.
The system is expected to streamline procurement within the public sector and save taxpayer’s money. The roll-out follows President Uhuru Kenyatta’s directive last August to all public entities to automate their procurement processes using IFMIS e-Procurement. Currently, State corporations use different systems to manage their finances.
State corporations
Speaking during a consultative forum between IFMIS and National Treasury and State corporations on Friday last week, IFMIS Director Jerome Ochieng’ said IFMIS and National Treasury will deploy teams to the 19 State corporations to help them implement IFMIS e-Procurement. “Over the first week of February, IFMIS teams started visiting State corporations that are housed by the National Treasury to begin deploying IFMIS. We need cooperation to achieve this particular objective,” said Ochieng’.
The IFMIS e-Procurement roll-out to State corporations will be undertaken in phases. The first phase will cover the 19 corporations under the National Treasury. By end of June, all the set ups of the IFMIS e-Procurement system will have been completed in these 19 State corporations. IFMIS department will also conduct training for procurement to pay officers from these corporations. The Procure to Pay system will be in use by August. Mr Ochieng’ said the National Treasury will bear the cost of deploying the IFMIS e-Procurement system, including training officers from State corporations on the use of the system. The corporations will, however, bear the system’s maintenance costs.
Labour intensive
The roll out of IFMIS e-Procurement to State corporations follows a comprehensive analysis of the systems currently in use in these institutions. “The survey of the State corporations’ current procurement systems has shown what is on the ground. We now know what we need as we deploy the IFMIS e-Procurement system to state corporations,” said Ochieng’.
The analysis found that half of the corporations are still using manual and labour intensive procurement methods, which could be time consuming and prone to manipulation. The survey showed that 30 per cent of the State corporations have partially automated procurement systems while 14 per cent had fully automated their procurement process. In August last year, President Uhuru Kenyatta issued a directive requiring all State corporations including public universities, to procure their goods and services online. This is expected to curb incidences of corruption.
“Let me say that as we roll out e-Procurement to ministries, I expect all public agencies, institutions including public universities and parastatals to be on this system,” said the President during the August 13, launch of the IFMIS e-Procurement system.
“They are part and parcel of Government, they must be part and parcel of this system. Transparency is not just a factor of Ministries but all institutions that are financed by Government,” the President said.