The government is now caught in a dilemma as the mandatory transition to electronic procurement by all State agencies threatens the business of Kenya Pipeline Company (KPC), which has been earmarked for a landmark Initial Public Offer (IPO) before the close of 2025 as part of a plan to raise Sh100 billion for the 2025/26 budget support.
The National Treasury said that KPC now risks losing the remaining share of petroleum product supplies to the lucrative Uganda market following delays in sourcing crucial inputs brought about by the transition to mandatory the Electronic Government Procurement System (e-GPS), effective July 1, 2025.