The National Treasury has started discussions with state corporations on the implementation of an online procurement system in the course of this year.
State corporations have until the end of this year to start using the Integrated Financial Management Information System (IFMIS) e-procurement system following an August 13 presidential directive.
The IFMIS Department of the National Treasury on Monday held a consultative meeting with different parastatals in a bid to find modalities to deploy the IFMIS e-procurement system within state corporations.
This follows a presidential directive made on August 13, 2014, requiring all state corporations to use IFMIS in their procurement of goods and services.
Jerome Ochieng director IFMIS Department at the National Treasury said meeting with state corporations formed for the department to implement the presidential directive.
“The purpose of this meeting is to get an understanding of what the parastatals are using today. With that, we can jointly develop a work plan on how to link what is on the ground with IFMIS by end of this year,” said Mr. Ochieng.
The president has been categorical that there is no option when it comes to use of the system by state corporations.
IFMIS e-procurement component automates the process of buying goods and services within the government, from requisition all through to payment. By eliminating manual processes, the system is expected to significantly increase accountability and efficiency.
At the moment, Ministries, Departments and Agencies (MDAs) as well as the 47 counties are hooked to the system that is expected to significantly improve accountability within government procurement.
The Government spends about 40pc of the budget in procurement of different goods and services. There have been concerns that purchases made by the Government are in most instances overpriced.
Mr. Ochieng said the system would effectively handle the issue of inflated pricing of items as it has a regularly updated price list of commonly used items, which reflects the market prices.
Henry Rotich Cabinet Secretary Treasury said the funds allocated to state corporations has been on the rise and needed to be managed prudently. Transfer of funds from central government to parastatals has risen from 0.7pc of the total budget in 1997 to 5.3pc in 2010.
“The government is therefore keen to ensure that these monies are used prudently to meet the national developmental goals. The e-procurement and payment system is expected to improve transparency and accountability in government spending,” said Mr. Rotich.
Use IFMIS among state corporations is expected to align the development agenda with the priorities of the parastatals.