MPs want eCitizen closed over Ksh10B scandal
By Mercy Mwai, August 6, 2025A report has revealed irregularities in the eCitizen platform that led to a Ksh9.4 billion loss on the day MPs ordered its closure.
The platform, which lacks standard operating procedures and over which the government has no control, saw Kenyans being overcharged Ksh2.6 billion as a convenience fee.
Further, the report has detailed how private entities benefited from the platform after monies were wired to them, and also shown how the control of the eCitizen platform ended in the hands of Webmasters Kenya Limited.
The rights had been handed to the National Treasury by the World Bank/International Finance Corporation (lFC) that financed the platform in 2017.
Webmasters had initially been engaged to provide Software Development and Maintenance Support Services, but later brought in Pesa Flow Limited and Olive Tree Media to offer support and maintenance.
The government was to pay the vendor and its consortium for support and maintenance, standardisation of the system and provision of payment gateway services.
Strategic risk
The eCitizen Platform had two Pesaflow Payment Gateways, which were running in parallel.
It comprised entities onboarded after a presidential directive for MDAs to onboard all government services and the previous gateway that was used to collect revenues.
Reads the report: “The majority of government services are provided through the platform, the control of the system by the vendor creates a single point of failure and a strategic risk in the delivery of public services to Kenyan citizens.”
Deputy Auditor General Isack Ng’ang’a demanded that the National Treasury ensure there is unconditional handover of the eCitizen platform, establish a comprehensive legal framework that outlines, among others, data protection standards, information security, and implement a comprehensive Standard Operating Procedures (SOPs) for all key business processes.
He said: “ln order to ensure the Government takes control of the eCitizen Platform, Webmasters Kenya Ltd should unconditionally hand over the eCitizen Platform as spelt out in paragraph 7 of the handover agreement. Further, a robust Change Management Process that requires all system changes to be formally documented, reviewed, and approved by authorised personnel should be implemented.”
According to the report, Ksh2.6 billion could not be linked to any invoices from Pesa Flow systems that had been contracted to offer support to the platform.
According to the report, the unaccounted receipts were due to partial payments, erroneous payments and duplicate payments, which indicates a lack of revenue traceability and accountability, which could lead to misappropriation, fraud or revenue leakages as well as affect service delivery, because not all revenue collected is remitted to Ministries, Departments and Agencies (MDAs).
Further, the report shows that Ksh549.69 million of the Ksh9.6 billion was paid to a company by the name Electronic Citizens Solutions Limited, yet it was not party to the agreement that brought on board Webmasters Kenya Limited, Pesa Flow Limited and Olive Tree Media, that was supposed to be paid the said monies.
In addition, the report also shows that the government irregularly paid Sh195.6 million for gateway services.
Reads the report: “This arrangement exposes the government to potential legal disputes or diversion and loss of funds that might arise from payments to parties that are not part of the contract.
Undisclosed account
With regards to the remaining Ksh6.3 billion of the Ksh9.6 billion, the report says that bank statements for eCitizen’s collection had been received from an undisclosed account, which was not listed among the approved collection accounts by The National Treasury
Reads the report: “ln this regard, it was used to irregularly collect money. The total amount irregularly collected using this account was not established as the bank statements for this account were not provided for audit.”
Following the move, MPs who sit in the Public Accounts Committee (PAC), headed by Butere MP Tindi Mwale, demanded that the government stop using the system as it is flawed and not anchored in any law.
The committee has also summoned Immigration Citizen Services PS Belio Kipsang and his Information, Communication and Technology (ICT) counterpart John Tanui to appear before the committee next week.
Mwale said they have summoned National Treasury Principal Secretary Chris Kiptoo to appear on Thursday, August 7, 2025, over the matter.
He said: “It is quite clear that this system, if we are serious, Kenyans should not be using it. This system lacks a standard operating levels agreement. This E-citizen is not supposed to be in operation. There are no documents to support it legally.”
Monumental scandal
Turkana MP Joseph Namwar branded the platform as a scam, as it does not have a legal framework to support operations.
Rarieda MP Otiende Amollo termed the whole issue a monumental scandal, while Mathioya MP Edwin Mugo said that Kenya is staring at a monumental monster which it will be unable to deal with in future.
Samburu West MP Naisula Lesuuda and her Aldai counterpart, Marriane Kitany, said that the whole issue is a scam as it lacks a clear governance structure.
With regards to the Ksh2.6 billion irregularly overcharged as a convenience fee, the report shows that the National Treasury did not establish a prorating band as outlined in the Gazette Notice No. 9290 of 2014 dated December 23, 2014, that required the Nominal Administrative Fee to be a prorated percentage of the amounts paid.
Instead, the report says that the Convenience Fee was charged at Ksh50.
In addition, the report also raised questions regarding the M-PESA Pay bill 222222.
A review of the Pay bill Statement revealed that on January 25, 2024, there were four transactions made from the pay bill Account to private entities instead of the designated Settlement Account.
The four transactions amounted to Ksh127.9 million, yet the approvals and documentation to support these transfers were not provided for audit.