Members of the National Assembly Public Accounts Committee have raised serious concerns over the alleged diversion of KSh6.3 billion from the government’s digital payments platform, eCitizen, into a private account without proper approval.
The revelations emerged from a special audit report by the Office of the Auditor General, covering operations of the platform between 2014 and 2025.
The report points to major financial discrepancies and governance gaps, raising questions about accountability and the safety of public funds.
Audit Flags Irregular Account
According to the Auditor General’s findings, the funds—comprising KSh68.7 million and USD 48 million—were channeled through an account linked to ‘Pesaflow’, which was not among the accounts approved by the National Treasury for revenue collection.
Director of Audit Addy Waichigo noted that the total amount transacted through the account could not be fully verified due to lack of bank statements.
“The total amount irregularly collected using this account was not established as the bank statements were not provided for audit,” Waichigo stated.
Treasury Responds
Treasury Principal Secretary Chris Kiptoo told the committee that action had already been taken after the issue was discovered.
“When I realised that money was being diverted to an account in Equity Bank, I gave directions and that was stopped,” he said.
However, lawmakers pressed further on how such a large sum could be diverted without detection for years.
Questions Over Settlement Payment
The committee also questioned a KSh127.8 million out-of-court settlement paid to Goldrock Ltd, which had sued the government over alleged wrongful termination of its contract related to the platform.
National Assembly PAC Chairperson Tindi Mwale demanded to know who authorised the payments, while MPs raised concerns about procurement procedures and oversight failures.
Kiptoo responded that the settlement was negotiated by the Office of the Attorney General and approved by the National Treasury.
Licensing and Oversight Concerns
Lawmakers, including Gatundu South MP GG Kagombe, also questioned whether payment service providers involved in the platform had been properly licensed over the years.
Kiptoo admitted that licensing was only confirmed from 2023 and promised to verify records for earlier periods.
Auditor Denied Access
In a further twist, Waichigo revealed that auditors were denied access to critical data on the e-Citizen platform, hindering the investigation.
“I was denied access to the e-Citizen platform,” she told the committee.
This prompted sharp reactions from MPs, who faulted the Treasury for failing to facilitate transparency despite being the accounting authority.
Next Steps
The committee has now summoned multiple entities linked to the platform, including Pesaflow Limited, Olive Tree Media, Webmasters Kenya Ltd, Electronic Citizen Solutions, Goldrock Ltd, and the Office of the Attorney General.
The probe is expected to shed more light on the management of the e-Citizen platform, as pressure mounts on government agencies to account for the handling of billions in public funds.
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