Home News Chris Kiptoo on the spot as e-Citizen scandal exposes deep failures in Treasury oversight

Chris Kiptoo on the spot as e-Citizen scandal exposes deep failures in Treasury oversight

Lawmakers question Kiptoo’s role in a secret deal that handed control of e-Citizen to private firms, as billions collected through the platform remain unaccounted for.

by Bonny
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A fresh scandal is now facing Kenya’s e-Citizen platform after reports emerged that billions of shillings collected through the system may not be reaching the Central Bank of Kenya.

This has raised serious questions about how the money is being handled and whether public funds are being properly accounted for. In response to the growing concerns, Parliament has summoned Treasury Principal Secretary Chris Kiptoo to explain the missing money. The lawmakers want to know why the funds collected through the platform are not reflecting in official Treasury accounts.

The issue was raised during a session by the National Assembly’s Public Accounts Committee, where members expressed deep frustration over the lack of accountability.

The committee reminded the Treasury that the Auditor General had already issued warnings about the platform’s operations, yet no action had been taken.

MPs accused the Treasury of ignoring earlier recommendations and failing to strengthen oversight mechanisms. According to the lawmakers, the entire situation points to a bigger problem of weak transparency in managing public money.

At the center of the issue is a deal signed in May 2023 between the ICT Authority and a private group made up of Webmasters Kenya Ltd, Pesaflow Ltd, and Olive Tree Media.

The deal gave this private consortium full control of the e-Citizen platform, which currently hosts more than 22,000 government services. The companies were paid KSh 50 million upfront and are expected to earn up to KSh 1 billion annually in onboarding fees.

These companies are also in charge of reconciling all payments made on the platform, which means they have control over how public money is tracked and reported.

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What has alarmed many is that the contract gives the private group the power to withdraw their software and systems if the government ends the deal.

If that happens, the entire platform could be shut down, affecting millions of Kenyans who rely on it for daily services like passport applications, driving licenses, and business registration.

Even worse, the deal was signed without the knowledge or approval of top government officials like the Attorney-General or the Treasury Cabinet Secretary. Instead, junior officers approved it, raising serious concerns about how such a sensitive contract was allowed to proceed without proper legal checks.

At the same time, Senator Okiya Omtatah has taken the matter to court, arguing that the KSh 50 convenience fee charged per transaction is both illegal and unfair.

With more pressure mounting, both the public and elected leaders are demanding answers on how such a vital platform fell into private hands, and why there has been so little oversight over money that belongs to all Kenyans.

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