Audit flags Sh44.8 billion gap in eCitizen funds

The Auditor General has revealed that about Sh44.8 billion collected through the government’s eCitizen platform in the 2023/2024 financial year is unaccounted for, raising serious questions about the system’s accountability and integrity.

In a new report, Auditor General Nancy Gathungu noted worrying inconsistencies between the revenue statements, figures recorded on the eCitizen portal, and the government’s main ledger.

These variances have cast doubt on the accuracy of records maintained by agencies that received the Sh44.8 billion in revenue.

The audit also flagged the absence of key documents for a total balance of Sh7.1 billion.

This amount is held in 12 local currency accounts and nine dollar accounts, but the supporting cash books and bank reconciliation statements were not presented for review.

In addition to the current-year concerns, the report highlighted unsupported prior-year balances amounting to Sh145.8 million.

The report indicated that details about the bank accounts and the reasons for prolonged delays in transferring the money were not provided.

The report comes amid increasing scrutiny of the eCitizen platform, which has become a central hub for delivering government services.

According to the audit, some 17,692 state functions have been integrated into the system.

Despite this wide reach, the Auditor General raised concerns over the government’s limited control over the system.

"Despite the strategic importance of eCitizen, the audit of [its] revenue accountability statements for the year ended June 30, 2024, revealed anomalies," the report states.

"The eCitizen programme cuts across the Social and Economic Pillar of the Vision 2030, the BETA, and is linked directly to Technology and Innovation as well as Public Sector Reforms," the report added.

The Auditor General further disclosed that a special audit of the eCitizen platform is underway. However, she warned that the government’s inability to fully manage the platform’s operations poses a major risk.

"Lack of full control of the system exposes the government to the risk of revenue leakages, lack of full accountability, system unavailability or downtime, security vulnerabilities, and business continuity threats," the report noted.

The report pointed out that critical system functions, such as adding new services and carrying out essential system changes, remain largely dependent on the system vendor.

"Further, the adequacy and effectiveness of the IT controls on eCitizen did not guarantee integrity of the data processed through the system," the report stated.

Concerns over the platform’s management were also raised in a separate probe by Parliament.

A month ago, lawmakers launched an investigation into the eCitizen platform following fears it could collapse if the contract with the developers was cancelled.

The Administration and Internal Affairs Committee received documents from Immigration and Citizen Services Principal Secretary Belio Kipsang, which raised red flags about the system’s control and upkeep.

The platform handles millions of shillings daily from people seeking various government services.

One of the major concerns is the contract governing the platform. According to the documents submitted to the committee, the agreement signed on May 25, 2023, heavily favours the supplier. It also gives the developer powers to pull down the system in case the contract is terminated.

Although the contract was meant to last three years, from 2023 to 2026, it does not clearly indicate the exact start and end dates, further complicating oversight efforts.

The audit findings and contract concerns now place the spotlight on the government’s growing dependence on private vendors to run key digital systems.

Critics argue that such arrangements risk undermining the state’s ability to safeguard public funds and control essential platforms.

As the special audit progresses and parliamentary investigations continue, the future of the eCitizen system and the fate of the missing billions remain under sharp public focus.