Treasury, auditors clash over Sh9.4b e-Citizen platform probe

PS Immigration and Citizen Services Belio Kipsang before the National Assembly Administration and Internal Security Committee to consider the Budget estimates FY 2025/26 at Parliament Buildings, Nairobi, on May 16, 2025. [Elvis Ogina, Standard] 

A heated exchange erupted on Thursday between National Treasury Principal Secretary Dr Chris Kiptoo and officials from the Office of the Auditor-General (OAG) over claims that billions of shillings may have been lost through the e-Citizen platform.

The OAG, had in a special audit report tabled on Tuesday, revealed that up to Sh9.4 billion could have been lost due to irregular fund diversions, absence of clear governance structures, and other malpractices linked to the digital platform.

Covering the 2021/22, 2022/23, and 2023/24 financial years, the audit aimed to assess the platform’s operational effectiveness.

However, appearing before the National Assembly’s Public Accounts Committee (PAC) alongside Principal Secretaries Belio Kipsang (Immigration and e-Citizen Services) and John Tanui (ICT), Dr Kiptoo strongly refuted the report’s findings.

“I want to assure Kenyans that since 2023, no money has been lost to the best of my knowledge. We have an interest like everybody else to have this matter addressed once and for all so that Kenyans can know the truth,” stated PS Kiptoo.

Kiptoo further criticised the OAG for failing to share its final audit report with the Treasury during the review period, arguing this denied his office an opportunity to respond.

 “I wish we had the chance to discuss this report with the auditors. There are things here we also feel we could have provided and that is the disadvantage with special audit-- you are not given an opportunity to reply.”

But in a swift rejoinder, OAG officials told off  the PS, accusing him of not being truthful with his comments concerning the audit and even through some of his submissions.

 “Before we finalised the audit report, we had an exit meeting where PS Kiptoo attended. We have the management letter, responses and I can even go on record to say that some submissions he had made here were not submitted to us,”  a representative of the  OAG said.

He added, “There are some responses that he has provided here that are contradicting the submission he made to us.”  

According to documents tabled before the committee, Sh360.1 billion in revenue has been collected through the platform since 2014. Kiptoo detailed a steady growth in transactions: Sh425 million in 2014/15; Sh3 billion in 2015/16; Sh8 billion in 2016/17; Sh12.2 billion in 2017/18; Sh17 billion in 2018/19; Sh14.4 billion in 2019/20; Sh16 billion in 2020/21; Sh20.1 billion in 2022/23; Sh88.7 billion in 2023/24; and Sh163.8 billion in the most recent financial year.

He also disclosed that of the 25,604 services identified for digitisation, 21,685 have been onboarded to the e-Citizen platform.

 Dr Kiptoo affirmed that the system is now fully government-owned after its handover from Webmasters Kenya Ltd.

“The directorate of Citizen services took over the e-Citizen platform operation in July, 2024 after which a contract novation was initiated indicating the introduction of Electronic Citizen Services (ECS) and its role within the consortium,” stated Kiptoo.

However, he acknowledged the illegal collections of Sh2.6 billion in convenient fees from Kenyans using the platform.

“It is true that there was delay in implementing the revised fees as per the gazette notice due to system challenges,” he said.

Following the session, PAC members requested an adjournment to study the audit report in detail, with plans to recall the officials in two weeks.

“While I support the adjournment, the PS’s responses have been inadequate. When they return, they must offer more substantive explanations,” said Gatundu South MP Gabriel Kagombe.