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Kenya’s National Treasury has assumed responsibility for managing E-Citizen after parliamentary scrutiny over its ownership and revenue collection, with a new assurance system also being developed.
Kiptoo said that although Kenya has made commendable progress since its placement on the Grey List in June 2024, the country must now shift focus from “merely demonstrating progress to achieving significant progress.”
According to the Treasury, funds raised from the transaction will be channelled to priority sectors including energy, roads, water, airports and digital infrastructure.
Principal Secretary Dr. Chris Kiptoo stated that up to 50 percent of the revenue collected from the road maintenance levy will be directed toward the securitization initiative.
The Treasury, through Cabinet Secretary John Mbadi and Principal Secretary Chris Kiptoo, defended the current itemised budget structure, arguing it promotes transparency.
Among the major unfunded areas are the school feeding programme, loans for higher education students, free education in public schools, fertiliser subsidies, and healthcare financing for holders of public insurance.
The National Treasury is set to kick off a comprehensive series of fiscal reforms beginning July 2025, anchored on the Treasury Single Account (TSA) system.
The National Treasury is inviting all Kenyans to submit their ideas and proposals on economic policies and tax measures to help shape the upcoming budget.
MPs questioned whether the new project was another example of the government handing control of national systems to private entities.
Kiptoo urged Kenyans to brace for "minor" adjustments to taxes if the government moves forward with this approach.
Initially, the projects were set to cost Sh62 billion, but after the contract cancellations, new agreements with commercial lenders raised the price tag.
