Over Ksh 11 billion collected through Kenya’s e-Citizen platform may have been diverted into private accounts, according to Auditor General Nancy Gathungu.
The figure could be even higher, with some reports suggesting it might reach Ksh 44.8 billion. This comes from a special audit conducted on the platform, which was designed to improve access to government services and boost revenue collection.
Instead, the findings point to massive financial irregularities, weak oversight, and possible misuse of public funds.
One of the most shocking discoveries in the audit is that Ksh 127 million was transferred from the e-Citizen paybill account in a single day to private entities.
These transactions lacked proper documentation, and the ownership details of the receiving firms were unclear.
The Auditor General also found that Kenyans were overcharged a total of Ksh 2.6 billion due to a flat convenience fee of Ksh 50 per transaction, which goes against the requirement to charge fees based on the cost of the service being offered.
The audit also uncovered huge discrepancies between what was recorded in the e-Citizen system, what was reported to the National Treasury, and what actually appeared in agency bank accounts. In total, as much as Ksh 44.8 billion could not be properly accounted for.
This suggests a serious failure in financial reporting and recordkeeping, making it hard to track public funds or ensure that all revenue reached its intended destination.
Even more concerning is the fact that the government does not have full control over the platform. The audit shows that the system is operated by a private company, Webmasters Ltd, and not by a state agency.
There is no clear legal framework governing this arrangement, which exposes the platform to risks of manipulation and unauthorized access.
The Auditor General also noted that no Data Protection Impact Assessment was done before rolling out the system, despite it handling sensitive personal and financial information.
Additionally, a cyberattack in July 2023 disrupted services, further exposing the platform’s weak security systems.
The Public Accounts Committee described the e-Citizen platform as a crime scene and called for its shutdown and a forensic audit.
Members of Parliament have demanded answers from top government officials, including Cabinet Secretaries and Principal Secretaries who are responsible for finance, ICT, and interior matters.
There is growing concern that the platform has become a tool for siphoning public funds and overburdening citizens through illegal charges.
According to the Auditor General, urgent reforms are needed. These include recovering lost funds, conducting formal investigations, creating a clear legal framework, and strengthening IT governance and cybersecurity controls.
Without these steps, the platform will continue to expose public money and personal data to high risks. This scandal has raised serious questions about digital governance in Kenya and the accountability of those trusted with managing national revenue systems.
