How Three Firms struck Gold in E-Citizen Deal
Quote from Lawyer on April 16, 2025, 7:25 amIn a controversial move that has raised eyebrows across Kenya, three private tech firms—Webmasters, Pesaflow, and Olive Tree Media— reportedly secured a lucrative contract to manage the country’s eCitizen platform, a digital portal central to accessing government services. The deal, reportedly signed in secrecy by the ICT Authority in May 2023, guarantees the consortium an upfront payment of Ksh 50 million and a staggering Ksh 1 billion annually, highlighting significant concerns about transparency and oversight in public-private partnerships.
The eCitizen platform, launched in 2014 to streamline access to over 15,000 government services, has become a cornerstone of Kenya’s digital transformation. From passport applications to business registrations, the portal processes millions of transactions daily, generating substantial revenue. However, the involvement of private firms in managing this critical infrastructure has sparked debate, particularly following a Kenya Insights report detailing the financial windfall for the three companies.
According to sources, Pesaflow, responsible for payment processing, earns between Ksh 100 million and Ksh 200 million monthly, potentially amassing Ksh 2.4 billion annually. Webmasters, which claims intellectual ownership of the platform, handles the technological framework, while Olive Tree Media oversees communication services, such as bulk SMS alerts. The consortium’s control over these vital functions has drawn scrutiny, especially given the lack of clear service-level agreements and the government’s heavy reliance on private vendors.
Auditor-General Nancy Gathungu has flagged significant risks in the arrangement, warning that the absence of a robust backup system leaves the platform vulnerable to cyberattacks. Additionally, the opacity surrounding the firms’ ownership and contracts has fueled suspicions of a “silent takeover” by interconnected stakeholders. Official records link Pesaflow’s shareholders—Evid Araka Sibi, Frank Lawrence Ochieng Weya, Charles Wambani Sewe, and Larry Ochleng Agoro—to Webmasters, suggesting a tightly knit network benefiting from the deal.
The eCitizen platform’s history is no stranger to controversy. In 2017, a legal dispute erupted when Goldrock Capital, a previous payment processor, was ousted, leading to lawsuits against the National Treasury and Webmasters. The Treasury denied authorizing private firms to collect revenue, yet billions in payments flowed through the platform, raising questions about accountability. Busia Senator Okiya Omtatah’s 2019 constitutional petition further alleged procurement irregularities, a case that remains unresolved.
Critics argue that the current deal exemplifies systemic issues in Kenya’s public procurement processes. The lack of competitive bidding and public disclosure in the 2023 contract has intensified calls for reform. Legal experts emphasize that such arrangements demand rigorous oversight to prevent revenue siphoning and ensure public funds are protected. As one analyst noted, “When private entities control a platform handling billions, transparency isn’t just ideal—it’s essential.”
The financial success of Webmasters, Pesaflow, and Olive Tree Media underscores the lucrative potential of digital governance platforms. However, it also highlights the need for robust legal frameworks to safeguard public interest. As Kenya continues its push toward a digital economy, the eCitizen saga serves as a cautionary tale of the risks inherent in blending public services with private profit.
For now, the three firms have struck a jackpot, but the long-term implications for Kenya’s digital infrastructure and public trust remain uncertain. As legal battles and investigations loom, stakeholders are urging the government to prioritize accountability and security to protect one of the nation’s most critical digital assets.
In a controversial move that has raised eyebrows across Kenya, three private tech firms—Webmasters, Pesaflow, and Olive Tree Media— reportedly secured a lucrative contract to manage the country’s eCitizen platform, a digital portal central to accessing government services. The deal, reportedly signed in secrecy by the ICT Authority in May 2023, guarantees the consortium an upfront payment of Ksh 50 million and a staggering Ksh 1 billion annually, highlighting significant concerns about transparency and oversight in public-private partnerships.
The eCitizen platform, launched in 2014 to streamline access to over 15,000 government services, has become a cornerstone of Kenya’s digital transformation. From passport applications to business registrations, the portal processes millions of transactions daily, generating substantial revenue. However, the involvement of private firms in managing this critical infrastructure has sparked debate, particularly following a Kenya Insights report detailing the financial windfall for the three companies.
According to sources, Pesaflow, responsible for payment processing, earns between Ksh 100 million and Ksh 200 million monthly, potentially amassing Ksh 2.4 billion annually. Webmasters, which claims intellectual ownership of the platform, handles the technological framework, while Olive Tree Media oversees communication services, such as bulk SMS alerts. The consortium’s control over these vital functions has drawn scrutiny, especially given the lack of clear service-level agreements and the government’s heavy reliance on private vendors.
Auditor-General Nancy Gathungu has flagged significant risks in the arrangement, warning that the absence of a robust backup system leaves the platform vulnerable to cyberattacks. Additionally, the opacity surrounding the firms’ ownership and contracts has fueled suspicions of a “silent takeover” by interconnected stakeholders. Official records link Pesaflow’s shareholders—Evid Araka Sibi, Frank Lawrence Ochieng Weya, Charles Wambani Sewe, and Larry Ochleng Agoro—to Webmasters, suggesting a tightly knit network benefiting from the deal.
The eCitizen platform’s history is no stranger to controversy. In 2017, a legal dispute erupted when Goldrock Capital, a previous payment processor, was ousted, leading to lawsuits against the National Treasury and Webmasters. The Treasury denied authorizing private firms to collect revenue, yet billions in payments flowed through the platform, raising questions about accountability. Busia Senator Okiya Omtatah’s 2019 constitutional petition further alleged procurement irregularities, a case that remains unresolved.
Critics argue that the current deal exemplifies systemic issues in Kenya’s public procurement processes. The lack of competitive bidding and public disclosure in the 2023 contract has intensified calls for reform. Legal experts emphasize that such arrangements demand rigorous oversight to prevent revenue siphoning and ensure public funds are protected. As one analyst noted, “When private entities control a platform handling billions, transparency isn’t just ideal—it’s essential.”
The financial success of Webmasters, Pesaflow, and Olive Tree Media underscores the lucrative potential of digital governance platforms. However, it also highlights the need for robust legal frameworks to safeguard public interest. As Kenya continues its push toward a digital economy, the eCitizen saga serves as a cautionary tale of the risks inherent in blending public services with private profit.
For now, the three firms have struck a jackpot, but the long-term implications for Kenya’s digital infrastructure and public trust remain uncertain. As legal battles and investigations loom, stakeholders are urging the government to prioritize accountability and security to protect one of the nation’s most critical digital assets.