Members of the National Assembly Public Accounts Committee (PAC) have raised alarm over the irregular diversion of Ksh.6.3 billion into a private account, highlighting persistent concerns over the security and management of the government’s digital payment platform, e-Citizen.
The revelations come in a special audit report covering the period 2014–2025, prepared by the Office of the Auditor General (OAG), which exposes discrepancies in the handling of payments and the misuse of public funds.
Irregular Funds Diversion
According to the report, Ksh.6.3 billion comprising Ksh.68.7 million and USD 48 million was routed into an unapproved account named Pesaflow, linked to a local bank, without authorization from the National Treasury.
“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 of Audit Addy Waichigo.
Treasury Principal Secretary Dr. Chris Kiptoo told PAC that the misappropriated funds had since been seized.
“When I realised that money was being diverted to an account in Equity Bank, I gave directions and that was stopped,” he said.
Controversial Out-of-Court Settlement
The committee also scrutinized a Ksh.127.8 million out-of-court settlement paid to Goldrock Ltd, which claimed wrongful termination under its contractual agreement with Webmasters Kenya Ltd for e-Citizen platform management.
Chairperson Tindi Mwale questioned, “Who authorised and approved the payments made on January 25th, 2024?”
PS Kiptoo clarified, “The Office of the Attorney General led the negotiations for the out-of-court settlements. The payments were authorised by the Attorney General, and the approval was made by the National Treasury.”
Licensing and Access Concerns
Further probing revealed gaps in regulatory oversight of payment service providers (PSPs) operating on the platform. Gatundu South MP GG Kagombe asked whether PSPs were licensed between 2014 and 2023. Kiptoo confirmed that licensing existed from 2023 and promised to verify earlier years.
The Auditor General also noted being denied access to security and personal data on the platform, a point contested during the hearings.
“I was denied access to the e-Citizen platform,” Waichigo said, while PS Kiptoo responded, “Who denied you? I am not aware of this.”
Next Steps
The PAC has invited multiple stakeholders involved in the e-Citizen operations for further inquiry, including Pesaflow Limited, Olive Tree Media, Webmasters Ltd, Electronic Citizen Solutions, Goldrock Ltd, and the Office of the Attorney General, among others.
The revelations underscore ongoing challenges in the oversight and governance of digital government platforms, raising questions about public resource protection and accountability in Kenya’s growing e-government initiatives.
