Report Lifts Lid on How Ksh 6.3 billion Was Diverted from eCitizen to Private Account

A report by the Office of the Auditor General has raised concerns over how Ksh 6.3 billion was allegedly diverted from the government’s eCitizen platform to a private account without approval.

The special audit, covering the period between 2014 and 2025, highlights major discrepancies in the handling of public funds linked to the digital payment system.

According to the report, the amount in question includes Ksh 68.7 million and $48 million (approximately Ksh 6.2 billion), which was channelled through an undisclosed account identified as Pesa Flow.

Office of the Auditor General Raises Concern Over Diversion of eCitizen Funds

Appearing before the National Assembly’s Public Accounts Committee (PAC) on Wednesday, March 25, Director of Audit at the Office of the Auditor General, Addy Waichigo, revealed that the account was not authorised.

“This account was not listed among the approved collection accounts by the National Treasury. In this regard, it was used to regularly collect money,” the audit office stated.

The PAC, chaired by Butere MP Tindi Mwale, is now probing how such a significant amount bypassed official government systems.

Treasury Principal Secretary Dr. Chris Kiptoo, who also appeared before the committee, assured lawmakers that the funds had since been secured.

“When the matter came to the attention of the National Treasury, a letter was written to Equity Bank requesting details of the agency accounts, and instructions were issued to freeze them. The accounts were frozen and the funds withheld. We are accountable to Parliament,” he said.

Also Read: DPP Directs Charges Against Hospitals and Individuals Accused of Stealing from SHA [FULL LIST]

At the same time, lawmakers questioned why the government paid Ksh 127.8 million to Gold Rock Limited in an out-of-court settlement.

The payment followed a lawsuit by the company, which claimed it had been unfairly removed from its contract related to the eCitizen platform.

Responding to the issue, Kiptoo termed it an internal matter within the Treasury.

“That is an internal matter handled within the Ministry,” he said.

Also Read: KDF Sergeant Among Six Suspects Arrested by DCI

Treasury Sets Record Straight on the Ownership of the Platform

The committee has now summoned several entities, including the Office of the Attorney General and Equity Bank, to explain how the funds were processed.

Other firms expected to appear include Pesa Flow Limited, Gold Rock Limited, Olive Media Limited, Webmasters Kenya, and Electronic Citizen Solutions.

“We expect these entities to explain how they were licensed, how approvals were granted, the amounts they handled, and whether there was any diversion,” said Mwale.

The Auditor General also warned that the government may not have full control over the eCitizen platform, noting that reliance on a vendor creates a “single point of failure.”

However, Kiptoo dismissed these concerns, stating that the government fully owns the platform following a handover agreement signed in January 2023.

“The vendor agreed to completely and unconditionally hand over the eCitizen platform to the Government of Kenya,” he said.

Follow our WhatsApp channel for instant news updates

Treasury PS Dr Chris Kiptoo. PHOTO/Parliament