Members of Parliament have identified loopholes in the e-Citizen consultancy agreement signed by the government warning it will cost taxpayers colossal sums as it majorly serves the interests of suppliers.
According to MPs, the lopsided contract exposes Kenyans to the risk of losing money and crucial data, even as the auditor general is undertaking a special audit on the e-Citizen government digital platform on the back of rising governance concerns.
The auditor general’s report for the 2023/2024 financial year noted the statement of revenue collections and transfers reflected Sh44.8 billion but a review of the accounts “revealed variances between balances reflected in the revenue statements, e-portal system and the ledger.”
“The office is currently undertaking a special audit on the e-Citizen government digital platform. The special audit is informed by the current strategic importance of E-citizen in the financial architecture of the government. The special audit is expected to provide highlights on the credibility and reliability of the e-Citizen system including assurance on whether data processed through the system was accurate and complete. Further, the special audit is to interrogate both IT and physical security, governance arrangements and the adequacy of the controls in place. As at the time of the audit, the special audit on the e-Citizen government digital platform had not been concluded,” the report states.
Members of the Administration and Internal Affairs committee of the National Assembly questioned the sincerity of Immigration and Citizen Services Principal Secretary Dr Bellio Kipsang after he failed to provide the required information on how the government electronic payment platform contract was negotiated and signed.
Dr Belio Kipsang, Principal Secretary in the State Department of Immigration and Citizen Services before the National Assembly Administration and Internal Security committee at the County Hall, Nairobi on April 15, 2025.
Photo credit: Dennis Onsongo| Nation Media Group
The MPs said while the government's electronic payment system handles hundreds of millions of shillings daily being payments from Kenyans for services offered by the government, it was signed by a junior officer representing the government and the suppliers on the other side.
Conspicuously missing on the contract presented to parliament is the signature of the Attorney-General, the government’s chief legal advisor.
“You cannot have an agreement to which trillions of shillings are going through without the signatures of the Attorney-General, the Cabinet Secretaries of the National Treasury and the Interior Ministry. It is scary,” a member of the committee who did not want to go on record said.
The e-Citizen ecosystem is supported by a consortium of developers registered as ECS (Electronic Services Solutions) LLP that includes Webmasters Kenya Limited, Pesaflow Limited and Olive Tree Limited.
Also missing are the signatures of the Cabinet Secretaries in charge of the National Treasury and Interior Ministry, notwithstanding the contract’s financial and security implications for the country.
Kisumu West MP Rozzah Buyu accused Dr Kipsang of ambushing the committee with documents just before the meeting.
“We oversight you on behalf of the people. Kenyans want to know where the money they pay goes," said Ms Buyu.
Dr Kipsang and his predecessor Julius Bitok had on numerous occasions, since last year when Mr Bitok was the PS, requested to provide the contract to the committee but failed.
President William Ruto during the launch of e-Citizen services, GavaMkononi app and Gava Express at KICC in Nairobi on June 30.
Photo credit: File | Nation Media Group
The National Assembly Standing Orders provide a notice of at least seven days for a witness appearing before a House committee to enable them to prepare adequately including submitting the required information in good time to allow members the time to prepare.
While the contract is supposed to last for three years from 2023 to 2026, it does not state the exact effective and due dates, with the MPs pointing to the loophole that they fear “could be explored at the government’s expense.”
The agreement provides for the termination of the contract by either of the two parties involved – the government and the consortium of developers- in any eventuality.
However, the committee fears that the government runs the risk of losing data on the platform should the consortium of developers- the suppliers- end it.
“In the event of termination, however occurring, the suppliers shall be entitled to rescind, withdraw or otherwise uninstall all their proprietary infrastructure and resources including all technical infrastructure and resources whether software or otherwise defined in the Service Level Agreement,” the contract reads.
Another concern to the MPs is the fact that the agreement is signed by Mr Stanley Kamanguya, the CEO of the ICT Authority on behalf of the government and witnessed by Mr Thomas Odhiambo, acting director at ICT Authority and Mr Isaac Ochieng', the Director-General e-Citizen.
e-Citizen and Webmaster Chief Executive Officer James Ayugi during an interview on February 28, 2025 in Kilimani, Nairobi.
Photo credit: Billy Ogada | Nation Media Group
The consortium of developers of the government E-payment platform was represented by Mr James Ayugi, the CEO of Webmasters Kenya Limited and witnessed by Mr Evid Araka, the director at Pesaflow Limited and Mr James Kabiru, the director of Olive Tree Media Limited.
The ECS is responsible and obligated to provide all services in the contract, the receipt of all payments accruing from the issuance of any and all performance or other security that may be required.
Webmasters Kenya Limited supports and maintains services including provision of customer care and related services of the consortium project.
Pesaflow Limited is in charge of all matters relating to payments under the project in accordance with the National Payment System Act of 2011 including the electronic payments set-up, integration and implementation and the technical “aspects of the consortium project work.”
Olive Tree Media Limited is in charge of bulk messaging and security support for notification services as well as revenue mobilisation in the consortium project work.
