A parliamentary probe into the government’s e-Citizen platform has uncovered fresh concerns after lawmakers were told that Sh6.3 billion was routed through an unauthorised private account, raising serious questions about oversight, accountability, and the safety of public funds handled through the system.
The issue came to light on Wednesday during a session of the National Assembly Public Accounts Committee, which is examining a special audit report by the Auditor General covering operations of the platform from 2014 to 2025.
The findings point to long-running weaknesses in how revenue collected through e-Citizen has been managed.
Auditors flagged irregular payments amounting to Sh6.3 billion, including Sh68.7 million and USD 48 million, which were channelled through an account identified as ‘Pesaflow’. The account, held in a local bank, was not among those approved by the National Treasury for receiving government payments.
The audit further revealed that it was not possible to confirm the full amount that passed through the account due to missing records.
“The total amount irregularly collected using this account was not established as the bank statements for this account were not provided for audit,” said Director Audit, OAG Addy Waichigo
Treasury Principal Secretary Dr Chris Kiptoo told the committee that the matter had been addressed once it was detected, adding that the funds in question had been secured.
“When I realised that money was being diverted to an account in Equity Bank, I gave directions and that was stopped,” said Kiptoo.
Members of the committee also turned their attention to a Sh127.8 million payout made to Goldrock Ltd following a legal dispute with the government. The company had moved to court after claiming it had been unfairly pushed out of its role linked to the e-Citizen system.
Documents reviewed by the committee show that Webmasters Kenya Ltd had entered into a subcontract with Goldrock Ltd in 2015, assigning it responsibilities related to revenue settlement and reconciliation on the platform.
Lawmakers sought to establish how the settlement was reached and approved.
“Who authorised and approved the payments made on January 25th, 2024?” Chairperson PAC National Assembly Tindi Mwale asked.
Kiptoo responded, “The Office of the Attorney General led the negotiations for the out-of-court settlements for the payment of the Sh127 million. The payments were authorised by the Attorney General. The approval was made by the National Treasury.”
Questions were also raised about whether firms providing payment services to the platform had the required licences over the years.
“I am asking you a specific question about the PSPs— are they licensed from 2014 to 2023?” Gatundu South MP GG Kagombe asked.
Kiptoo responded, “From 2023, there’s a PSP license; from 2014, I will check for you.”
The committee session further revealed a standoff between the Auditor General and the Treasury over access to the platform, with auditors saying they were blocked from reviewing critical systems and data.
“I was denied access to the e-Citizen platform,” said Waichigo.
Kiptoo denied knowledge of the restriction, saying, “Who denied you? I am not aware of this.”
“You are the accounting officer and the letter for access was addressed to you,” Tindi Mwale noted.
As the inquiry continues, the committee has summoned several organisations associated with the platform, including Pesaflow Limited, Olive Tree Media, Webmasters Ltd, Electronic Citizen Solutions, Goldrock Ltd, and the Office of the Attorney General, in a bid to piece together how the funds moved and who was responsible.
