Public Accounts Committee has launched an inquiry into the alleged diversion of KSh9.4 billion from the government’s digital payments platform, eCitizen platform, escalating scrutiny over the management and control of one of Kenya’s most critical public service systems.
The committee, chaired by Tindi Mwale, resolved to summon the heads of seven entities as part of the investigation, following concerns raised in a special audit report by the Auditor-General.
The probe comes at a time when the eCitizen platform has become central to government service delivery, processing payments for a wide range of services including immigration, licensing, and business registration.
Auditor-General Flags Irregular Fund Flows
According to the audit findings presented to Parliament, KSh9.4 billion was irregularly funneled from the platform to private entities, raising questions about governance, oversight, and accountability in the management of public funds.
The report details how funds collected from citizens through the platform were diverted and paid out to external entities under unclear arrangements.
Lawmakers said the scale of the alleged diversion raises significant concerns about the integrity of the digital payments ecosystem and the safeguards in place to protect public revenue.
“We expect the entities to give their side of the story and explain how they were licensed to collect funds from Kenyans, how approvals were granted, the amounts they are holding, and any possible diversion,” Mwale said during the committee session.
Entities Summoned Over Fund Handling
The committee has invited a mix of government offices and private firms to explain their roles in the flow of funds from the platform.
Among those summoned are the Office of the Attorney General, Equity Bank Kenya, Pesa Flow Limited, Goldrock Limited, Olive Media Limited, Webmasters Kenya, and Electronic Citizen Solutions.
The entities are expected to provide details on their contractual arrangements, licensing frameworks, and the amounts they handled through the platform.
The inquiry is likely to focus on whether due process was followed in onboarding these entities and whether the government retained sufficient oversight over revenue collection and remittance.
Government Defends Ownership Structure
During the session, senior government officials moved to reassure lawmakers that the platform is under state ownership.
Principal Secretary for the National Treasury Chris Kiptoo told the committee that the government fully owns the eCitizen platform following a handover agreement signed in January 2023.
“As per the agreement, the vendor agreed to completely and unconditionally hand over the eCitizen platform to the Government of Kenya,” Kiptoo said.
He added that the agreement was signed jointly with officials from the State Department for ICT and the State Department for Immigration, including John Tanui and Belio Kipsang.
The clarification comes in response to concerns raised in the Auditor-General’s report that the government may not have had full control over the platform, instead relying on a vendor to manage key aspects of its operations.
Concerns Over Vendor Control
The audit report warned that reliance on a vendor to operate the platform could expose the government to operational and financial risks.
“Noting that the majority of government services are provided through the platform, control by the vendor creates a single point of failure,” the report stated.
This raises broader questions about the governance of digital public infrastructure in Kenya, particularly as government services become increasingly digitised.
The eCitizen platform has evolved into a central gateway for public service delivery, handling millions of transactions and significant revenue flows annually.
Any weaknesses in its control framework could therefore have far-reaching implications for public finance management and service delivery.
Implications for Public Finance and Digital Governance
The ongoing probe underscores the growing importance of digital systems in revenue collection and the need for robust oversight mechanisms.
Analysts note that as governments shift toward digital platforms, ensuring transparency, auditability, and direct control over payment systems becomes critical to safeguarding public funds.
The outcome of the investigation could influence future policy decisions on how digital government platforms are structured, particularly in relation to private sector involvement.
It may also prompt a review of contracts, licensing frameworks, and revenue-sharing arrangements linked to the platform.
What Comes Next
The summoned entities are expected to appear before the committee in the coming sessions, where they will be required to provide detailed accounts of their involvement in the platform’s operations.
The Public Accounts Committee is expected to compile its findings and make recommendations to Parliament, which could include policy reforms, administrative actions, or further investigations.
Given the scale of the alleged diversion and the central role of the eCitizen platform in government operations, the probe is likely to remain a key focus of parliamentary oversight in the coming months.
