- Auditor General says Ksh44.8 billion collected via eCitizen is missing.
- Over Ksh144 million also disappeared from key ministries like Lands, NTSA, and BRS.
- Several cash accounts holding Ksh7.1 billion lack reconciliation records.
- Contracts were signed without approvals, and no penalties exist for delayed reports.
- Parliament is investigating the eCitizen deal, citing poor oversight and contract terms.
A fresh report by Auditor General Nancy Gathungu has cast a dark shadow on Kenya’s digital payment system, revealing that over Ksh44 billion collected through eCitizen in the 2023/2024 financial year cannot be traced.
The audit, covering transactions up to June 30, 2024, shows that out of Ksh100.8 billion received through the Government Digital Payments platform, nearly half—Ksh44.8 billion—has variation. These gaps appear in how revenue was reported, recorded, and reconciled across various platforms and accounts.
Apart from the missing eCitizen funds, another Ksh144 million was found to have vanished from government entities such as the Ministry of Lands, NTSA, and Business Registration Services.
According to the audit, payments were overstated, duplicated, or lacked a clear explanation. Auditor General Gathungu said that each agency used its methods and standards, making it difficult to track how much was collected or where it went.
In some offices, essential financial records weren’t maintained, while others failed to submit verified reports to the Treasury.
The audit further noted that several bank accounts holding Ksh7.1 billion both in Kenya shillings and dollars did not have proper cash books or reconciliation documents.
Even more worrying, a balance of Ksh145.8 million from previous years couldn’t be accounted for, and there was no documentation to explain the delay or missing data.
Auditors raised concerns about how contracts were handled in the digital payment system. In many cases, junior officers approved deals without consulting the Treasury or the Attorney General.
The report blames this on a weak governance structure that allows room for misuse. There were also no real-time monitoring tools to keep tabs on revenue flow, and no penalties in place to discourage delays in reporting or remitting funds.
The eCitizen platform is run by a private group called ECS, which includes Webmasters Kenya, Pesaflow, and Olive Tree Media. However, the audit found no formal agreements with these payment processors raising red flags on oversight and accountability.
Additionally, a critical agreement between the government and Safaricom ended in June 2023, weakening technical support and system reliability.
Following the audit, parliamentary committees on ICT and National Security have begun investigating the eCitizen contract that was signed in May 2023.
Legislators are alarmed by certain terms in the contract, especially clauses that let the private operators pull out infrastructure at will and avoid responsibility for any data losses or system failures.
Treasury PS Chris Kiptoo and several top government officials are expected to appear before MPs to explain how such a large sum went missing and what actions will be taken.
This report has landed at a time when Kenya is struggling with debt and citizens are calling for stricter accountability in public finance management.
