MPs raise alarm over Ksh.6.3B diverted from e-Citizen platform

Members of the National Assembly Public Accounts Committee have raised a red flag over how Ksh.6.3 billion was irregularly diverted into a private account without government approval, further raising concerns about the security of the platform and the plunder and misuse of public resources.

The special audit report by the Auditor General on the government’s digital payments platform, popularly known as e-Citizen, has lifted the lid on the rot that has dogged the platform, in an audit covering the period from 2014 to 2025.

The Auditor General raised concern over massive discrepancies and irregularities in the payment of Ksh.6.3 billion, comprising Ksh.68.7 million and USD 48 million, from an undisclosed account named ‘Pesaflow’.

The auditor stated that the account in question, linked to a local bank, was not listed among the approved collection accounts by 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 Audit, OAG Addy Waichigo

Treasury Principal Secretary Dr Chris Kiptoo told the National Assembly Public Accounts Committee that the money had already been seized.

“When I realised that money was being diverted to an account in Equity Bank, I gave directions and that was stopped,” said Kiptoo.

Members further probed how the government ended up paying Ksh.127.8 million as part of an out-of-court settlement to Goldrock Ltd, after the entity initiated legal proceedings, contending wrongful termination from its contractual obligations on the e-Citizen platform.

In 2015, Webmasters Kenya Ltd entered into a private subcontracting agreement with Goldrock Ltd for the management of revenue settlement and reconciliation pertaining to the platform.

“Who authorised and approved the payments made on January 25th, 2024?” Chairperson PAC National Assembly Tindi Mwale asked.

PS Kiptoo responded, “The Office of the Attorney General led the negotiations for the out-of-court settlements for the payment of the Ksh.127 million. The payments were authorised by the Attorney General. The approval was made by the National Treasury.”

Gatundu South MP GG Kagombe, on his part, asked, “I am asking you a specific question about the PSPs— are they licensed from 2014 to 2023?”

Kiptoo responded, “From 2023, there’s a PSP license; from 2014, I will check for you.”

This came as the Auditor General complained of being denied access to security and personal data in the platform.

“I was denied access to the e-Citizen platform,” said Waichigo.

“You are the accounting officer and the letter for access was addressed to you,” Tindi Mwale noted.

The committee has now invited several entities involved in the operations of the e-Citizen platform, including Pesaflow Limited, Olive Tree Media, Webmasters Ltd, Electronic Citizen Solutions, Goldrock Ltd, and the Office of the Attorney General, among other institutions in question.