Written by Faith Mwende
A new audit report by Auditor General Nancy Gathungu has uncovered serious financial irregularities in Kenya’s digital revenue collection system, revealing that Ksh44.8 billion collected via the eCitizen platform during the 2023/2024 financial year is unaccounted for.
According to the report for the year ending June 30, 2024, a total of Ksh100.8 billion was collected through the Government Digital Payments (GDP) platform. However, discrepancies in reporting between the e-portal system, revenue statements, and the official ledger have created doubts about the completeness and accuracy of receipts, specifically concerning Ksh44.8 billion reported by revenue receivers.
The missing funds are believed to have been diverted through opaque transactions, the use of unauthorised accounts, and lack of oversight.
Multiple Irregularities Across Government Agencies
The Auditor-General’s findings also exposed the disappearance of at least Ksh144 million across several key government institutions, including the Ministry of Lands, Business Registration Services, and NTSA. The audit cited “overstatements, incomplete, duplicate or partial payments that were unexplained.”
“Different MDAs had different processes, reporting formats, and standards,” said Gathungu, pointing to systemic weaknesses that allowed for inconsistencies in reporting and tracking of public funds.
In many cases, government ministries and agencies failed to maintain proper records of services rendered, reconcile revenue with actual transactions, or submit audited and verified figures to the National Treasury.
Additionally, cash books and reconciliation statements for bank accounts holding Ksh7.1 billion across both Kenya shilling and USD accounts were missing, making it difficult to determine how much was actually collected or spent.
Further, previous year balances amounting to Ksh145.8 million lacked documentation, with no explanation for delays or missing account details.
Contractual and Structural Weaknesses
The audit also raised alarms over contracts signed by junior officials without necessary approvals from key entities like the Attorney General’s Office or the Treasury. It found that weak governance frameworks and inconsistent reporting templates left room for manipulation and mismanagement.
Gathungu criticized the lack of real-time monitoring tools, which allowed ministries to delay or suppress fund remittances without consequence. She also highlighted the absence of penalties for non-compliance or late reporting.
The eCitizen platform itself, operated by a private consortium known as ECS (comprising Webmasters Kenya, Pesaflow, and Olive Tree Media), was flagged for its lack of oversight. The Auditor-General revealed that no signed service-level agreements (SLAs) existed with the payment service providers, creating a major accountability loophole.
Furthermore, a co-location and support services agreement with Safaricom PLC expired in June 2023, weakening the overall infrastructure integrity of the digital system.
Parliament Launches Investigations
In response, the Security and National Administration and ICT Committees of Parliament have launched probes into the legality of the eCitizen contract, signed on May 25, 2023.
MPs are especially concerned about clauses that allow vendors to withdraw all proprietary infrastructure if the contract is terminated and that exempt them from liability, placing the burden on the government to insure against data loss and service disruptions.
Treasury Principal Secretary Chris Kiptoo and other top officials are expected to be summoned to explain the terms of the contract and the whereabouts of the unaccounted funds.
The revelations come as Kenya grapples with a ballooning fiscal deficit and renewed calls for transparency in public financial management.
