Tana River Governor Dhadho Godhana (pictured) has stripped county executives and chief officers of powers to award tenders.
The administration has also warned officials implicated in fraud that they will be sacked and prosecuted.
Mr Godhana's action follows protests by some contractors over alleged massive bribery of officers, who are part of a racket. They are said to ensure only those who bribe them are paid.
"It is better I lose the next general election instead of me abetting corruption every time in my government, and this is why the last regime lost election," he said in Hola yesterday.
The complaints raised by the Hola businessmen were largely directed at executives, chief officers and directors said to have illegally awarded building contracts and supply of furniture to various offices to their relatives and spouses.
In a statement, Godhana said all procurement shall be done thorough open competitive bidding, unless alternative procurement methods were put in place in accordance with the Public Procurement and Disposal Act, 2005.
He directed the Finance department not to service illegally awarded tenders.
"Procurement process must be done in a manner that promotes competition, transparency, accountability and proper utilisation of county assets," he said.
Some of the departments linked to corruption are Education, Roads and Health.
They have been widely accused of negotiating with some contractors before awarding of tenders.
