Millions of taxpayer funds collected through the e-Citizen platform remain unaccounted for, raising concerns about potential embezzlement.
Auditor-General Nancy Gathungu has flagged discrepancies amounting to at least Ksh.144 million in government agency records for the financial year ending June 2024. The actual balances reported by ministries, departments, and agencies (MDAs) do not match the amounts recorded in the e-Citizen system, fueling suspicions of financial mismanagement.
“Review of the e-Citizen revenue accountability platform and the revenue statements revealed variances between balances reflected in the revenue statements, e-portal system, and the ledger,” stated Gathungu in the latest national audit report.
Ministry of Lands Records Largest Discrepancy
The Ministry of Lands, under Cabinet Secretary Alice Wahome, reported the biggest shortfall. The ministry received Ksh.7.237 billion through e-Citizen but ended the year with only Ksh.7.1 billion in actual balances, leaving over Ksh.138 million unaccounted for.
To add to the confusion, its financial statements listed a balance of Ksh.7.239 billion—an amount higher than both the total collected through the system and the actual funds available. This suggests the figures were overstated, further complicating accountability efforts.
Similarly, Business Registration Services, which processes 13 services via e-Citizen, reported discrepancies. The system logged Ksh.1.18 billion in receipts, yet the agency’s actual balance was Ksh.1.176 billion, revealing a Ksh.4.2 million shortfall.
Discrepancies in Revenue Collection Agencies
The Registrar of Motor Vehicles also reported missing funds. The agency collected Ksh.3.635 billion via e-Citizen, but its actual balance was just Ksh.2 billion, leaving a gap of Ksh.2.5 million.
In another inconsistency, the agency overreported its balances by Ksh.7.8 million, claiming to have Ksh.3.64 billion instead of the actual Ksh.3.632 billion.
Other agencies also overstated their revenue figures despite their actual balances matching e-Citizen receipts. This practice created an illusion of higher collections—figures that could not be verified against system records.
The Kenya Revenue Authority (KRA) was among those flagged for discrepancies. The tax authority collected Ksh.20.6 billion through e-Citizen in the 2023/24 financial year but reported raising Ksh.20.738 billion, overstating its revenue by Ksh.128.9 million.
System Irregularities and Ownership Concerns
Beyond the missing funds, the Auditor-General highlighted persistent issues within the e-Citizen platform that undermine its effectiveness as a digital gateway for government services.
One major concern is the Ksh.1.9 billion classified as partial, incomplete, or duplicated payments. While these funds were received, they were not applied for their intended purposes, raising accountability concerns.
“It was not clear why the balance had been classified as partial, incomplete, and duplicated, and what efforts management was taking to clear the amount from its records,” Ms. Gathungu stated.
The report also questioned the government’s lack of full control over the platform. Despite being a state service, e-Citizen is still managed by a private entity, forcing the government to consult an external operator for any modifications, including adding new services.
Legal Compliance Issues
The Government Digital Payment Unit, which oversees e-Citizen, has also been found in violation of multiple legal requirements. Despite handling vast amounts of user data, the unit is not registered as a data controller with the Office of the Data Protection Commissioner and lacks a formal data protection policy.
Additionally, it has failed to comply with Public Finance Management Regulations by not submitting quarterly reports on receipts and disbursements, further breaching financial laws.
Special Audit Underway
In response to these concerns, the Office of the Auditor-General has launched a special audit of the e-Citizen platform.
“The 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,” Ms. Gathungu stated.
