The National Treasury principal secretary and officials from the Office of the Auditor-General on Thursday clashed over an audit report on the e-Citizen platform.
This comes after a special audit raised serious questions about transparency, accountability and control of the digital revenue collection system.
Appearing before MPs over claims that at least Sh10 billion may have been lost through the platform, Dr Chris Kiptoo dismissed the Auditor-General’s findings and insisted that no revenue had been lost since 2023. However, he acknowledged being unable to account for the period between 2017 and 2022.
Appearing before the National Assembly’s Public Accounts Committee (PAC), the PS criticised the audit, which covered the financial years 2021/22 to 2023/24 and claimed the Auditor-General failed to share the final report before it was tabled in Parliament.
“To my knowledge, no money has been lost through e-Citizen. We are as interested as anyone else in establishing the truth, once and for all, so that Kenyans can have clarity,” said Dr Kiptoo, who was accompanied by counterparts Dr Bellio Kipsang (Immigration and e-Citizen Services) and John Tanui (ICT).
The State’s e-Citizen payment platform.
However, Dr Kiptoo’s claim that Treasury was not involved in preparing the audit did not sit well with representatives from the Auditor-General’s office, who were present.
They accused Treasury of failing to provide critical documentation—such as records of transfers from the paybill account to private entities—despite repeated requests.
“Before finalising the report we held an exit meeting, which PS Kiptoo attended. We have the management letter and official responses.
"I can go on record to say some of the responses tabled today were not submitted to us,” said a representative from the Auditor-General’s office. “In fact, some of the statements presented here contradict what was submitted earlier.”
Members of the committee did not cross-examine Dr Kiptoo, with Teso South MP Mary Emase saying they “need more time to scrutinise the response and annexes the PS has provided” .
“To do justice to this report, we require thorough interrogation. There are many complex issues,” added Funyula MP Wilberforce Ojiambo.
However, some members criticised Dr Kiptoo’s responses as inadequate.
Treasury Principal Secretary Chris Kiptoo during a past appearance before the National Assembly’s Public Accounts Committee.
Photo credit: Dennis Onsongo| Nation Media Group
“Some of the responses provided don’t address the audit concerns. We need proper, comprehensive answers,” said Gatundu South MP Gabriel Kagombe.
The audit flagged numerous issues, including lack of a legal framework to govern the platform,absence of Service Level Agreements, a weak governance structure and irregular collection of convenience fees.
It also singled out ongoing control of e-Citizen by Webmasters Kenya Ltd despite government claims of full acquisition, and delayed remittance of funds to government entities.
While Dr Kiptoo asserted that the platform is now government-owned—citing a January 2023 handover agreement signed by three PSs—the audit report indicates that operational control still lies with the vendor.
The report also noted that the National Treasury irregularly collected Sh2.6 billion by charging a flat Sh50 convenience fee instead of a prorated amount as required by Gazette notice.
The audit further revealed that Executive Order No.2 of 2023 mandated the Directorate of Citizen Services under the Interior ministry to coordinate e-Citizen functions, and the Treasury, through the GDP unit, to manage payments made through the platform.
But no oversight body was created or mandated to coordinate the two ministries and provide strategic leadership.
