By Mandere Onyinkwa
The Office of the Auditor-General, in a document tabled in Parliament, concluded that while eCitizen has simplified access to government services, it is undermined by poor oversight, continued vendor control, and questionable financial practices.
The report notes that the platform was born out of a World Bank–IFC initiative in 2013, later handed over to the National Treasury in 2017.
Yet, despite this transfer, ownership and control somehow reverted to the private vendor, Webmasters Kenya Ltd, before being handed back again in 2023.
“It was not explained how the ownership and control of the eCitizen Platform ended up in the hands of the vendor after having been handed over to The National Treasury by IFC in 2017,” the audit observed.
This lingering dependence on the vendor, the report warns, creates a “single point of failure” for a system that now processes billions of shillings in public revenue.
The Auditor-General highlighted the absence of a legal framework to anchor the platform, noting that the last steering committee’s term ended in 2021 without producing regulations.
“Without a legal framework, the Government Digital Payment Platform faces risks of non-compliance, leading to potential legal disputes and undermining public trust,” the report cautioned.
The lack of a clear governance structure has also left responsibilities fragmented between the National Treasury, the Directorate of eCitizen Services, and the ICT Authority, resulting in inefficiencies and vulnerabilities.
Security and privacy concerns were flagged, with auditors denied full access to assess IT controls. Still, system logs revealed weaknesses that could compromise confidentiality and integrity of citizen data.
Business continuity was also found wanting, with past downtime episodes underscoring the risks of poor contingency planning.
Funds collected through eCitizen took an average of eight days to reach ministries and counties due to manual settlement processes, disrupting cash flows.
As of June 2024, Ksh.2.57 billion in receipts could not be traced to invoices, raising fears of fraud and misappropriation.
Payments amounting to Ksh.492 million and USD 414,299 were made to a company not party to the official maintenance contract, exposing government to potential legal disputes.
Even more troubling, bank statements revealed Ksh.68.7 million and USD 48.1 million collected through an unapproved account named ‘Pesaflow’, while four transactions from the official Paybill 222222 were diverted to private entities in January 2024.
Manual Reconciliation
While the platform was meant to improve efficiency, ministries and counties now face heavier workloads, manually reconciling reports and grappling with errors.
Settlement reports have been inconsistent, with discrepancies running into hundreds of millions.
For instance, the Tourism Fund’s records showed a variance of Ksh.515 million between eCitizen reports and actual remittances.
Low-cost products and services have become uncompetitive, with a 20-shilling item attracting a Ksh.50 fee – a 250 percent price hike.
In healthcare, patients are charged at every service point, disproportionately burdening low-income families.
“This is contrary to the government agenda to improve healthcare quality and affordability as per the Bottom-Up Economic Transformation Agenda (BETA),” the report observed.
The Auditor-General’s recommendations are clear: establish a legal framework, create a coherent governance structure, develop standard operating procedures, sign service level agreements with financial providers, automate settlement processes, and review the convenience fee structure.
Above all, the government must secure full control of the platform from vendors to safeguard public funds.
In her foreword, Auditor-General Nancy Gathungu summed up the urgency of reform: “Irregularities in revenue collection and processing compromise transparency and accountability, potentially resulting in revenue losses.”
“These findings emphasize the urgent need for reforms to strengthen the system’s effectiveness and safeguard public funds.”