Fresh concerns have emerged over the management of public funds after Members of the National Assembly’s Public Accounts Committee flagged the irregular diversion of Ksh 6.3 billion linked to the government’s digital payments platform, eCitizen. The revelations stem from a special audit conducted by the Office of the Auditor-General Kenya, exposing serious gaps in oversight, accountability, and system security. The audit, covering the period between 2014 and 2025, uncovered discrepancies involving billions of shillings reportedly funneled through an undisclosed account known as “Pesaflow.”
According to auditors, the account—linked to a local bank—was not among those officially approved by the National Treasury Kenya for revenue collection. This raised immediate concerns about how such a significant amount of public money could be processed outside the government’s established financial systems. Even more troubling was the lack of transparency, as auditors were not provided with bank statements necessary to establish the full extent of the transactions.
Appearing before the Public Accounts Committee, Treasury Principal Secretary Chris Kiptoo confirmed that action had been taken once the issue came to light. He stated that the funds had been traced to an account at Equity Bank and that steps were immediately taken to halt further diversions and secure the money. However, lawmakers questioned why the issue had gone undetected for such a long period and whether sufficient safeguards were in place to prevent similar occurrences.
The committee also scrutinized a separate payment of Ksh 127.8 million made to Goldrock Ltd following an out-of-court settlement. The company had sued the government over the termination of its role in the e-Citizen platform. The payment, reportedly approved by both the Attorney General’s office and the National Treasury, raised eyebrows among MPs, who demanded clarity on who authorized the transaction and whether due process was followed.
The controversy also brought renewed focus on the involvement of private entities in managing aspects of the e-Citizen platform. In 2015, Webmasters Kenya Ltd entered into a subcontracting agreement with Goldrock Ltd to handle revenue settlement and reconciliation. Lawmakers questioned the licensing and regulatory compliance of payment service providers involved over the years, particularly between 2014 and 2023.
In a startling revelation, the audit team disclosed that they were denied access to critical data within the e-Citizen system. Addy Waichigo told the committee that the lack of access hindered a full assessment of the platform’s operations, raising further concerns about transparency and accountability. The claim prompted sharp reactions from MPs, who pressed Treasury officials to explain why auditors were blocked despite formal requests.
The Public Accounts Committee, chaired by Tindi Mwale, has now summoned several entities linked to the platform. These include Pesaflow Limited, Olive Tree Media, Webmasters Kenya Ltd, Electronic Citizen Solutions, Goldrock Ltd, and the Office of the Attorney General. The probe aims to establish accountability and determine whether public funds were misused or improperly handled.
The unfolding revelations surrounding the e-Citizen platform paint a troubling picture of financial mismanagement and weak oversight within a critical government system. As investigations continue, the findings could have far-reaching implications for public finance management and the credibility of digital governance platforms in Kenya.
