NAIROBI, Kenya — Members of Kenya’s National Assembly Public Accounts Committee (PAC) have raised serious concerns over the irregular diversion of Ksh.6.3 billion into a private account without government approval, highlighting risks to public funds on the e-Citizen digital payments platform.
A special audit report by the Auditor General covering the period 2014–2025 has revealed discrepancies and irregularities in the management of the government’s online payment system.
The report flagged transfers totaling Ksh.68.7 million and USD 48 million from an account labeled ‘Pesaflow’, which is linked to a local bank but not approved by the National Treasury for government collections.
“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 PAC that the funds had already been recovered.
“When I realised that money was being diverted to an account in Equity Bank, I gave directions and that was stopped,” he said.
Out-of-court settlements under scrutiny
PAC members also questioned the Ksh.127.8 million paid to Goldrock Ltd as part of an out-of-court settlement after the company challenged its alleged wrongful termination from contractual obligations on the e-Citizen platform.
The matter arose from a 2015 subcontracting agreement between Webmasters Kenya Ltd and Goldrock Ltd, which covered revenue settlement and reconciliation tasks for e-Citizen.
“Who authorised and approved the payments made on January 25th, 2024?” asked PAC Chairperson Tindi Mwale.
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.”
Concerns over Payment Service Providers (PSPs)
Gatundu South MP GG Kagombe probed the licensing of payment service providers linked to the platform: “I am asking you a specific question about the PSPs, are they licensed from 2014 to 2023?”
Kiptoo clarified, “From 2023, there’s a PSP license; from 2014, I will check for you.”
Auditor General denied platform access
The Auditor General also raised concerns about restricted access to security and personal data on the platform.
“I was denied access to the e-Citizen platform,” Waichigo stated.
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Kiptoo replied: “Who denied you? I am not aware of this.”
Chairperson Mwale reminded him, “You are the accounting officer and the letter for access was addressed to you.”
Committee summons
The PAC has now summoned multiple entities involved in e-Citizen operations to clarify their roles and accountability, including:
- Pesaflow Limited
- Olive Tree Media
- Webmasters Ltd
- Electronic Citizen Solutions
- Goldrock Ltd
- Office of the Attorney General, among others
The committee’s inquiry is expected to shed light on the mismanagement of digital public funds and strengthen oversight of government payment systems.
