Taxpayers in Kenya are once again witnessing how their money is being misused through questionable dealings involving private firms linked to the eCitizen platform. These firms have managed to pocket at least Ksh 1.45 billion while operating with little transparency.
The government’s digital payment system, which was meant to streamline services, has instead become a money-making venture for a few individuals.One of the main firms involved is Pesaflow, which was officially gazetted to collect payments for government services.
This private entity has been billing the State between Ksh 100 million and Ksh 200 million every month, translating to an annual revenue of around Ksh 2.4 billion.
Despite handling such massive amounts of money, its ownership, contracts, and financial operations remain undisclosed, raising serious questions about accountability.
The Auditor-General, Nancy Gathungu, has raised concerns about the firm’s involvement, pointing out that it has been given control over eCitizen without a proper backup system. She also criticized the Ksh 50 convenience fee imposed on Kenyans seeking digital services, calling it unjustified.
This fee, when multiplied by the millions of transactions conducted through eCitizen, adds up to billions that go into private hands rather than public development.
Pesaflow is part of a consortium that includes Webmasters Kenya and Olivetree Limited, all of which are linked to software developer James Ayugi. Webmasters Kenya claims intellectual ownership of the eCitizen platform, but the government had earlier stated that the platform was handed over by the International Finance Corporation (IFC).
This contradiction only adds to the lack of clarity surrounding the platform’s control. Before Pesaflow was brought in, a company called Goldrock Capital Ltd was managing funds from eCitizen users to the government.
However, after a fallout, Goldrock was removed, and Pesaflow was given the role in 2017. Notably, Pesaflow was registered around the same time Goldrock was in a legal dispute with the government, Safaricom, and Webmasters over mobile money wallets.
Company records show that Pesaflow’s largest shareholders include Evid Araka Sibi and Frank Lawrence Ochieng Weya, who each own 3,000 shares. Other shareholders include Charles Wambani Sewe and Larry Ochleng Agoro, who each hold 2,000 shares.
All of them have ties to Webmasters, suggesting that the firm may have simply changed hands within the same network of individuals. Despite this, Ayugi has refused to provide clear explanations about his connections to both Webmasters and Pesaflow. He insists that Webmasters handles technology, Pesaflow deals with payments, and Olivetree Limited oversees communication services like bulk SMS alerts.
The Auditor-General’s report has further highlighted the risks posed by the government’s heavy reliance on private firms for eCitizen’s critical functions. Over 15,000 public services listed on the platform could be exposed to security threats if a cyberattack were to occur.
The report also revealed that even basic support services for eCitizen are in private hands, with government officials forced to seek help through WhatsApp, which is an unreliable and unprofessional way to manage a national payment system.
Another alarming issue is that eCitizen’s customer support, including helplines and email services, is controlled by the vendors rather than government agencies. There are no clear service-level agreements in place, meaning that private firms have the power to determine how public services function without any real accountability to taxpayers.
This entire arrangement raises concerns about how Kenya’s digital public services are being handled. Instead of benefiting the citizens, eCitizen appears to be enriching a few individuals who have positioned themselves strategically within the system.
The lack of transparency, questionable business dealings, and reliance on private vendors for essential government services point to a larger issue of financial mismanagement and possible corruption.
Kenyan taxpayers continue to lose billions while struggling with poor services, unexplained fees, and a system that seems designed to benefit a select few rather than the public. The government’s failure to properly regulate and control such critical digital infrastructure only exposes the extent of reckless financial decisions that burden citizens while benefiting private companies.
