By TWV Team
More than a decade after its launch, Kenya’s flagship digital platform, eCitizen, is under intense scrutiny over serious financial and operational shortcomings. A recent public finance review by the World Bank has exposed systemic failures that raise questions about the platform’s integrity, efficiency, and adherence to legal standards.
Launched in 2013 with the promise of transforming public service delivery and boosting revenue collection, the platform has become the subject of an alarming audit. According to the World Bank, a recent report by Kenya’s Auditor-General revealed that KES 144 million collected via eCitizen remains unaccounted for in official financial records. This discrepancy suggests potential fraud, corruption, or gross mismanagement.
Central to the issue is the lack of government control over the platform. Despite handling millions of sensitive personal and financial transactions daily, the system is operated by a private technology vendor, the identity and contract terms of which remain undisclosed. This opaque arrangement has left experts in public finance deeply concerned.
Compounding the controversy is the revelation that the Government Digital Payments Unit, which oversees eCitizen, is not registered with the Office of the Data Protection Commissioner, in breach of Kenya’s Data Protection Act. As a result, there is no formal mechanism for accountability to safeguard the personal data of millions of Kenyans.
The World Bank also highlighted a range of other systemic issues in the platform and broader tax administration. These include inaccuracies in the taxpayer register, low compliance with filing and payments, weak adoption of electronic payment systems, and unpaid VAT refunds. Moreover, the absence of a risk-based audit system further undermines Kenya’s ability to manage public funds efficiently.
In response, the World Bank has proposed a series of reforms. Chief among them is the expansion of eCitizen’s transaction capacity and the integration of its systems with Kenya’s Treasury IT infrastructure. This, the World Bank argues, would help close revenue gaps, reduce administrative costs, and ensure real-time financial reporting.
The World Bank is also pushing for automated tax exemption processes, improved data integration, and enhanced fiscal planning tools. If properly implemented, these measures could raise to 0.6 per cent of Kenya’s GDP in additional yearly revenue.
Beyond revenue, the potential benefits of a reformed system are broad. A more transparent and accountable digital infrastructure could create a more equitable economic environment, attract investment, and foster fairer competition in the marketplace.
However, for these reforms to take hold, Kenya must first confront the underlying issue of governance and control. As it stands, a public system without public oversight not only fails its citizens, it undermines the very foundation of digital trust and transformation that eCitizen was meant to establish.
