eCitizen platform was launched in 2014 to streamline access to over 16,000 government services. From passport applications to tax payments, eCitizen was meant to be a beacon of efficiency, cutting through bureaucratic red tape and bringing services to citizens’ fingertips. Yet, beneath its sleek interface, a storm has been brewing—a saga of financial discrepancies, private vendor control, and public trust hanging in the balance. Welcome to what many are calling the “eCitizen Heist.”
Imagine a Kenya where you no longer queue for hours at government offices, where a few clicks on your phone or laptop can secure a driving license, pay taxes, or register a business. That’s the vision eCitizen sold to millions of Kenyans. Backed by President William Ruto’s administration as a cornerstone of the “Gava Mkononi” (Government in Your Hands) initiative, the platform saw a 300% revenue surge from Sh1.4 billion in June 2023 to Sh4.1 billion by September of that year. With over 220 government entities integrated, it’s a digital juggernaut, collecting millions daily. But where there’s money, there’s often mischief.
The Auditor-General Nancy Gathungu dropped a bombshell. Her audit of the 2023/2024 financial year revealed that a staggering Sh44.8 billion collected through eCitizen was unaccounted for. That’s right—nearly half of the Sh100.8 billion processed couldn’t be traced to government coffers. Discrepancies between revenue statements, the eCitizen portal, and official ledgers raised red flags. An additional Sh145.8 million from prior years also lacked documentation, with no clear explanation of where the funds went or why they weren’t transferred. The audit didn’t stop there. It exposed weak IT controls, leaving the platform vulnerable to manipulation. Cash books and bank reconciliation statements for Sh7.1 billion across multiple accounts were missing. Even more alarming, contracts signed by junior officials bypassed oversight from the Attorney General and Treasury, creating loopholes for potential fraud. Social media erupted, with users on X labeling eCitizen a “bottomless sinkhole” and accusing private vendors of siphoning public funds like taxes and school fees.
At the center of the controversy is Webmasters Kenya Limited, the private firm that developed and operates eCitizen, alongside its affiliates, Pesaflow and Olive Tree Media. Despite government orders in 2022 to transfer full control to the state, Webmasters has clung to the platform, charging a Sh50 convenience fee per transaction—a fee that was supposed to be abolished. According to the Auditor-General, this fee alone generated Sh15.9 billion in the 2023/2024 financial year, with an additional Sh8.57 billion in maintenance fees flowing to the consortium. Court documents reveal a contract signed on May 25, 2023, that heavily favors the vendors. If the government terminates the agreement, Webmasters can dismantle the platform, pulling proprietary software and infrastructure. This clause leaves Kenya’s digital service delivery at the mercy of a private entity, raising questions about sovereignty and accountability. James Ayugi, Webmasters’ CEO, has defended the arrangement, citing the platform’s complexity and the firm’s investment. But with monthly billings of Sh100–120 million, critics argue the real incentive is profit, not public service.
The Vendor Grip: Webmasters Kenya’s Role
This isn’t eCitizen’s first brush with scandal. In 2019, the Directorate of Criminal Investigations probed how Sh5.6 billion vanished from an eCitizen paybill account managed by Goldrock Capital Limited, a firm allegedly linked to Webmasters. The Treasury denied authorizing Goldrock to collect funds, yet billions flowed through an M-Pesa paybill outside government control. Earlier legal battles under the Uhuru Kenyatta administration saw activist Okiya Omtatah challenge the Sh50 fee’s legality, calling it exploitative and the vendor selection irregular. The 2023 cyberattack by Anonymous Sudan, which crippled eCitizen with a DDoS assault, further exposed its vulnerabilities. While no data was reportedly lost, the attack disrupted access to critical services, highlighting the risks of weak IT governance. These incidents paint a picture of a platform plagued by systemic flaws, from financial opacity to security gaps.
The eCitizen saga isn’t just a cautionary tale; it’s a call to action. Parliament’s Security and National Administration and ICT Committees are investigating, summoning Treasury officials like Principal Secretary Chris Kiptoo to explain the missing funds and lopsided contract. The Auditor-General has urged stronger IT controls, real-time monitoring, and a legal framework to anchor eCitizen’s operations. The World Bank, which funded the platform’s development, has recommended integrating it fully with the Treasury’s IT ecosystem to plug revenue leakages. For Kenyans, the solution lies in transparency and accountability. The government must wrest control from private vendors, abolish exploitative fees, and ensure every shilling reaches the exchequer. A forensic audit, as demanded by MPs, could uncover the truth behind the missing billions. Meanwhile, citizens deserve a platform that delivers on its promise without turning into a financial black hole.
eCitizen was meant to be Kenya’s digital pride, a symbol of progress in a tech-savvy nation. Instead, it’s become a cautionary tale of how ambition can falter without oversight. The “eCitizen Heist” isn’t just about missing money—it’s about missing opportunities to build a better Kenya. As investigations unfold, one thing is clear: the fight for transparency is a fight for the future. Let’s hope the government listens, because Kenyans deserve a system that serves, not steals.