The Auditor General Nancy Gathungu is at it again, this time round revealing how the government spent KSh 1.45 billion on eCitizen, with a private firm pocketing the entire amount.
The private firm behind eCitizen, Webmasters Kenya Ltd, continues to control the digital government services platform and collect convenience fees, despite a 2022 directive from President William Ruto’s administration requiring the system to be handed over to the state.
Auditor General Nancy Gathungu during a past media presser. Photo: Citizen Digital Source: Facebook
Auditor-General Nancy Gathungu’s latest report reveals that Webmasters and its affiliate firms pocketed KSh 591.9 million from convenience fees and an additional KSh 857 million in maintenance fees in the financial year ending June 2024, totaling KSh 1.45 billion in earnings.
In November 2022, Treasury Cabinet Secretary Prof. Njuguna Ndung’u and ICT Cabinet Secretary Eliud Owalo met with Webmasters representatives to relay President Ruto’s directive for the firm to surrender all rights to eCitizen to the government.
The firm was ordered to cease charging convenience fees, transfer the system’s source code, architecture, and user manuals, and train government staff on operating the platform.
Auditor General Nancy Gathungu during a past parliamentary committee event. Photo: NTV Kenya Source: X
The directive also extended to Webmasters’ affiliate firms, Pesaflow Ltd and Olive Tree Ltd, which handled payments and messaging services for government transactions.
A structured four-stage handover was planned, with physical setup by January 27, 2023, transfer of system documentation by February 3, 2023, system audit completion by February 24, 2023, and final training by July 13, 2023.
The government retained the right to inspect the process and later contract Webmasters or another vendor for maintenance under a fixed-term agreement.
Auditor General Nancy Gathungu speaks during a past media presser. Photo: Nation Source: Facebook
Despite these agreements, Webmasters continues to operate eCitizen and collect fees, raising concerns over government control and security risks.
The lack of a system backup has been flagged as a significant vulnerability, with fears that a cyberattack could paralyze government services.
Additionally, concerns have been raised about the handling of sensitive citizen data by a private entity with minimal state oversight.
Originally built in 2014 by Webmasters with just 10 services, eCitizen has since expanded to host thousands of government services, becoming a critical national infrastructure.
During the Uhuru Kenyatta administration, a dispute emerged over ownership, with the government citing contracts and World Bank documents to assert its claim.
Webmasters countered that the platform had evolved beyond its original scope, justifying its continued role and compensation.
In January 2023, Webmasters and Goldrock withdrew their financial claims following government pressure.
However, Senator Okiya Omtatah, who had challenged the legality of convenience fees, was forced to file a separate case after the initial suit was withdrawn.
Despite a government-organized eCitizen workshop in Mombasa in April 2023, attended by 62 officials from various agencies, Webmasters remains in control of the platform nearly two years after the handover directive.
