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Post Reply: National Assembly Calls for eCitizen Suspension Amid Fraud Allegations

<blockquote><div class="quotetitle">Quote from <a class="profile-link highlight-moderator" href="https://lawguide.co.ke/understanding-law/legal-forum/profile/lawyer/">Lawyer</a> on August 6, 2025, 8:30 am</div><div id="pl-7397"  class="panel-layout" ><div id="pg-7397-0"  class="panel-grid panel-no-style" ><div id="pgc-7397-0-0"  class="panel-grid-cell"  data-weight="1" ><div id="panel-7397-0-0-0" class="so-panel widget widget_sow-editor panel-first-child panel-last-child" data-index="0" data-style="{&quot;background_image_attachment&quot;:false,&quot;background_display&quot;:&quot;tile&quot;,&quot;background_image_size&quot;:&quot;full&quot;,&quot;background_image_opacity&quot;:&quot;100&quot;,&quot;border_thickness&quot;:&quot;1px&quot;}" ><div
			
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	<p dir="ltr" data-pm-slice="1 1 []">The National Assembly's Public Accounts Committee (PAC) has demanded the immediate suspension of the eCitizen platform, a digital portal central to the Kenyan government's service delivery, following serious allegations of fraud and mismanagement. The committee's call comes after an audit revealed significant financial irregularities, including the loss of billions of shillings and unauthorized charges imposed on Kenyans accessing public services through the platform.</p>
<p dir="ltr">The eCitizen platform, launched in 2014 to streamline access to government services such as passport applications, business registrations, and marriage certificates, has been hailed as a cornerstone of Kenya's digital transformation. However, recent findings by Auditor-General Nancy Gathungu have exposed deep flaws in its operations, prompting lawmakers to label the platform a potential scam. The audit, discussed during a heated PAC session, uncovered that approximately Sh44.8 billion in revenue collected through eCitizen remains unaccounted for, raising concerns about transparency and accountability.</p>
<p dir="ltr">According to the audit, the platform, initially developed by Webmasters Kenya Limited with funding from the World Bank's International Finance Corporation (IFC), was handed over to the National Treasury in 2017. However, a controversial agreement signed on January 13, 2023, between the ICT Ministry and Webmasters appears to have reverted control to the private vendor without clear justification. This arrangement has limited the government's oversight, with the vendor retaining significant authority over critical system functions, including the ability to shut down the platform if the contract is terminated. The lack of transparency in this handover has fueled suspicions of insider dealings.</p>
<p dir="ltr">Further compounding the issue, the audit revealed that Sh2.5 billion was illegally collected from Kenyans through unauthorized charges for services on the platform. Additionally, Sh127.9 million was transferred to private entities via a paybill account intended for automatic transfers to a settlement account at KCB Bank, with no supporting documentation provided. The audit also flagged Sh145.8 million in unsupported balances from previous financial years and Sh7.1 billion held across 21 bank accounts, none of which were adequately documented.</p>
<p dir="ltr">Lawmakers expressed outrage over these findings, with Aldai MP Marianne Kitany describing the situation as a disaster that exposes Kenyans to the risk of financial loss and data breaches. The PAC has summoned three principal secretaries, Chris Kiptoo (National Treasury), Belio Kipsang (Immigration and Citizen Services), and John Tanui (ICT), to provide clarity on the platform's operations and the missing funds. Turkana MP Joseph Namwar accused senior officials of potentially abusing the system, while Rarieda MP Otiende Amollo criticized the Treasury for failing to act on recommendations made by the Auditor-General as early as 2017.</p>
<p dir="ltr">The committee's concerns extend beyond financial mismanagement. The eCitizen platform's reporting mechanisms were found to be inadequate, with government departments, including the State Law Office, unable to access financial reports on revenues generated from their services. For instance, Sh116.83 million collected from 15 of the 34 gazetted marriage registration centers was reported, but revenue from the remaining 19 centers remains unaccounted for, highlighting significant gaps in record-keeping.</p>
<p dir="ltr">The PAC, chaired by Butere MP Tindi Mwale, emphasized that digital platforms must not become unaccountable black boxes. The committee has called for stronger government ownership, improved system controls, and greater oversight to protect public resources. The ongoing special audit by the Auditor-General aims to uncover further details about the platform's operations and the extent of the financial discrepancies.</p>
<p dir="ltr">Public reaction has been one of growing frustration, with many Kenyans expressing distrust in the platform on social media. The eCitizen scandal has intensified scrutiny of President William Ruto's administration, which has championed digitization as a key pillar of its governance strategy. Critics argue that the lack of swift action to address the irregularities raises questions about the government's commitment to fighting corruption.</p>
<p dir="ltr">As the investigation continues, the PAC's call for suspension signals a critical juncture for the eCitizen platform. Lawmakers have warned that without immediate reforms, the platform risks further eroding public trust and undermining Kenya's digital economy ambitions. The summoned principal secretaries are expected to appear before the committee to address these concerns, with Kenyans awaiting answers on who is accountable for the billions lost and how the government plans to restore confidence in its flagship digital initiative.</p>
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