According to the audit findings, the platform, intended to centralise and streamline government service payments, has been hijacked by private interests, with the government shockingly lacking control over its core systems. The vendor, Webmasters Kenya Ltd, has retained control despite the World Bank/IFC formally handing over the platform to the National Treasury in 2017.
This unauthorised control has created a single point of failure that now poses a strategic risk to the delivery of essential public services, affecting everything from passport applications to business permits. The government’s overreliance on a private firm to manage such critical infrastructure is both reckless and unacceptable.
The audit uncovered staggering irregularities. Sh2.6 billion was overcharged to unsuspecting Kenyans under the guise of a “convenience fee”, collected at a flat rate of Sh50 per transaction, in blatant contravention of Gazette regulations, which required a prorated nominal fee. Between December 2023 and June 2024 alone, this unlawful fee collection amounted to over Sh349 million.
Worse still, Sh549 million was paid to Electronic Citizens Solutions Ltd, a company with no legal relationship to the original contract involving Webmasters, Pesa Flow Ltd, and Olive Tree Media. This shocking payment was made without justification, raising serious concerns about fraudulent diversion of public funds.
Further scrutiny of the platform’s M-PESA Paybill number 222222 revealed that Sh127.9 million was transferred to unnamed private entities. No approvals or documentation were provided to justify the disbursements, direct violations of Article 201 of the Constitution, which demands prudent use of public resources.
Even more damning is the revelation that an unauthorised account named “pesaflonw” was used to collect public funds, completely outside the purview of the National Treasury. Auditors were denied access to this account’s bank statements, making it impossible to determine how much money was siphoned off.
The Public Accounts Committee (PAC), led by Butere MP Tindi Mwale, has since branded the entire system as a scam, demanding its immediate shutdown. “This platform is not anchored in any law. It lacks operating standards, traceability, and accountability. It must be closed,” Mwale declared.
Other MPs have echoed these sentiments, with Rarieda MP Otiende Amollo calling the scandal “monumental” and Mathioya MP Edwin Mugo warning that Kenya faces a “digital monster it may never control.”
As pressure mounts, the public is left to question how such a vital system was allowed to operate in a legal and governance vacuum. Kenyans deserve answers and accountability. If swift action is not taken, the eCitizen saga may go down as the most audacious looting scheme of Kenya’s digital age.
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