E-Citizen Looting Probe Uncovers Billions Lost in Kenya’s Digital Payment Platform

By Street News Team | August 7, 2025

A recent investigation into Kenya’s e-Citizen platform, the government’s flagship digital payment system, has revealed shocking irregularities, with Auditor-General Nancy Gathungu reporting a potential loss of over KSh 10 billion. The probe, detailed in a special audit report submitted to the National Assembly, has exposed systemic flaws, unauthorized transactions, and a lack of oversight that allowed billions to be siphoned off, raising serious questions about the platform’s management and security.

Massive Financial Irregularities Uncovered

The e-Citizen platform, designed to streamline access to over 22,000 government services, has been hailed as a cornerstone of Kenya’s digital transformation. However, the Auditor-General’s report paints a troubling picture. According to the findings, at least KSh 10 billion in public funds may have been lost due to mismanagement and weak controls. An additional KSh 2.6 billion was overcharged to Kenyans accessing public services, with no clear justification for the excess fees.

The audit, covering the 2021/22 and 2023/24 financial years, highlighted several critical issues:

• Unauthorized Transfers: KSh 127.9 million was transferred to private entities on January 25, 2024, through the platform’s M-Pesa paybill (222222) without supporting documentation.
• Mysterious Accounts: KSh 6.3 billion was received in an unlisted account called “Pesaflow,” which is not among the National Treasury’s approved collection accounts.
• Irregular Payments: KSh 545.69 million was paid to Electronic Citizen Solutions Ltd, a company not party to any official agreement, raising concerns about potential fund diversion.
• Lack of Legal Framework: The platform operates without a clear legal or governance structure, creating vulnerabilities for fraud and abuse.

The Auditor-General also flagged the platform’s reliance on a private vendor, Webmasters Kenya Ltd, despite its ownership being formally handed over to the National Treasury by the World Bank’s International Finance Corporation (IFC) in 2017. A questionable agreement signed in January 2023 with Webmasters has left the government without full control, increasing risks of system failures and data breaches.

Lawmakers Demand Accountability

The revelations have sparked outrage among lawmakers, with the National Assembly’s Public Accounts Committee summoning Principal Secretaries Chris Kiptoo (National Treasury), Belio Kipsang (Immigration and Citizen Services), and John Tanui (ICT) to explain the mismanagement. Some MPs have called for an immediate shutdown of the platform and a forensic audit to trace the missing funds.

Posts on X reflect public frustration, with users describing e-Citizen as a “crime scene” and accusing the government of turning it into a “private ATM” for connected individuals. One user claimed that since 2022, over KSh 56 billion has been looted through the platform, including KSh 44.8 billion unaccounted for in the 2023/24 financial year alone.

A Platform Plagued by Vulnerabilities

The e-Citizen platform’s issues are not new. A 2023 cyberattack, attributed to a group called Anonymous Sudan, disrupted services for days, affecting everything from visa applications to electricity payments. While the government claimed no data was lost, the incident exposed the platform’s fragility. The recent audit further revealed a lack of Service Level Agreements (SLAs) with payment service providers and inconsistent financial reporting by Ministries, Departments, and Agencies (MDAs), allowing funds to be diverted without oversight.

The platform’s contract with a private consortium, including Webmasters Kenya, Pesaflow Ltd, and Olive Tree Media Ltd, has also raised red flags. The agreement allows vendors to withdraw critical infrastructure if terminated, leaving the government vulnerable. Additionally, irregular convenience fees and payments for “gateway services” have added to the financial burden on citizens.

Public Outcry and Calls for Reform

Kenyans have taken to social media to voice their anger, linking the platform’s mismanagement to broader governance issues. One X user pointed out the irony of schools closing due to lack of funds while billions disappear through e-Citizen, the same platform used to pay school fees. Others have criticized the government’s push to onboard more services onto the platform, questioning whether it was a deliberate move to facilitate looting.

Activist Okiya Omtatah, who has previously challenged e-Citizen’s operations in court, has called for full transparency on the platform’s revenue and usage. His 2019 lawsuit, consolidated with a case involving Goldrock Capital and Webmasters, remains unresolved, highlighting the slow pace of justice in addressing these issues.

What’s Next for e-Citizen?

The Auditor-General has called for urgent reforms, including stronger oversight, improved system controls, and full government ownership of the platform. The ongoing investigations by the Directorate of Criminal Investigations (DCI) and parliamentary committees aim to uncover the extent of the looting and hold those responsible accountable. However, with the platform collecting between KSh 700 million and KSh 1 billion daily, the stakes are high, and public trust is at an all-time low.

As the probe continues, Kenyans are left wondering whether the e-Citizen platform, once celebrated as a tool for transparency and efficiency, can be salvaged—or if it will remain a symbol of digital-era corruption.

Stay tuned to Street.co.ke News for updates on this developing story.