Questions grow as Parliament’s Sh6.3 Billion eCitizen probe stalls

More than a month after Parliament vowed to get to the bottom of questionable transactions involving billions of shillings collected through eCitizen, the inquiry has gone quiet, leaving unanswered questions over what happened to Sh6.3 billion flagged by auditors and whether those responsible will ever be held to account.

The National Assembly Public Accounts Committee (PAC), which had moved swiftly to investigate concerns raised in a special audit report, has not resumed hearings since postponing meetings scheduled for May, despite the matter involving one of the government's most important revenue collection platforms.

The committee, chaired by Butere MP Tindi Mwale, had lined up several firms linked to the operation of eCitizen for questioning on May 5, 2026. Those summoned included Electronic Citizen Solutions, Pesaflow Limited, Webmasters Kenya Limited, Olive Tree Media Limited and Goldrock Limited.

A separate appearance by the managing director of Equity Bank had also been planned as lawmakers sought answers over transactions highlighted in the audit report.

However, the hearings were pushed forward after witnesses requested more time to prepare their submissions. Committee records show the postponement shifted the sessions to May 12, 2026.

Since then, the committee has not reconvened, creating uncertainty over the future of the investigation and drawing concern from some members.

Several lawmakers familiar with the matter questioned the explanation given for the delay, noting that the firms had already submitted documents to the committee before the hearings were postponed.

Some members privately wondered why additional preparation was necessary, while others raised concerns about whether witnesses may have received advance guidance before appearing before the committee.

Tindi Mwale rejected suggestions of outside influence and described the claims as rumours. He has, however, not responded to further requests seeking clarification on when the inquiry will resume.

At the centre of the investigation is a special audit covering the 2021/22 to 2023/24 financial years, which raised concerns over funds that passed through an account held at Equity Bank under the name of Pesaflow.

According to the audit, the account received approximately Sh6.24 billion in both local and foreign currency over several years.

Records reviewed by auditors show that in the 2020/21 financial year, deposits totalling Sh7.84 million and USD5.86 million were made into the account. In 2021/22, another Sh60.88 million and USD29.73 million was deposited, while USD12.6 million was received in 2022/23. No deposits were recorded in the 2023/24 financial year.

Auditors reported that their work was hindered after Equity Bank failed to provide critical bank statements requested during the review.

Because of the missing records, investigators said they could not establish who ultimately received the funds or determine how the money moved after being deposited into the account.

The report further identified unauthorised transfers through Paybill 222222, questionable payments and weaknesses in controls governing the eCitizen platform.

One of the transactions highlighted involved Sh127.9 million that was moved in January 2024 to private entities without supporting documents. Auditors said the transfers involved funds intended for settlement and did not comply with the principles of public finance management set out under Article 201 of the Constitution.

The findings also raised concerns about the government's continued dependence on private firms years after eCitizen was officially handed over.

Although the platform was developed under a World Bank-supported International Finance Corporation programme and transferred to government control in 2017, auditors found that key operations still relied on vendors and that ownership arrangements remained unclear.

Investigators said the absence of adequate documentation also limited their review of information technology controls and financial safeguards within the system.

The report noted that the Public Finance Management Act requires the National Treasury to appoint authorised receivers of revenue and obligates collectors to transfer funds within three days of collection.

It also pointed to Executive Order No. 2 of 2023, which established the Government Digital Payment Unit under the National Treasury to oversee eCitizen collections.

Despite these measures, auditors concluded that complete control of the platform had not been achieved, leaving critical functions dependent on external service providers.

This, they said, restricted efforts to fully assess cybersecurity measures, payment processing controls and protections for public revenue information.

As the committee remains inactive, attention is shifting to whether lawmakers will revive the inquiry and address concerns raised by the audit.

PAC is responsible for reviewing public accounts and audit reports and recommending action where public resources may have been mismanaged.

The continued delay has fuelled concerns about the pace of accountability in the management of digital revenue systems, with growing calls for stronger oversight of government technology platforms and the public funds they handle.