Shock as KES 6.3 Billion e-Citizen Funds Are Sent to Private Account

A new audit report has revealed a shocking financial scandal involving Kenya’s e-Citizen platform, where billions of shillings meant for government services were diverted to a private account.

Audit Reveals Irregular Transfer of Funds

In March 2026, the Auditor General, Nancy Gathungu, released a special report showing that about KES 6.3 billion (around $48 million) collected through e-Citizen was redirected to a private bank account.

According to the report, the money was sent through an undisclosed account held at Equity Bank. The account is linked to a private company known as Pesaflow Limited, which was not approved by the National Treasury to collect government revenue.

Auditors Denied Full Access

The audit team faced challenges while investigating the matter. The Auditor General revealed that they were not given full access to the system, especially key security and personal data.

Because of this, auditors were unable to confirm the exact amount of money collected or lost through the platform.

Billions Still Unaccounted For

The report highlighted major financial gaps, including:

KES 6.3 billion in unreconciled Kenyan shillings
$68 million in unexplained foreign currency transactions

These irregularities cover a long period between 2014 and 2025, raising serious questions about accountability and oversight.

Government Responds to the Allegations

Treasury Principal Secretary Chris Kiptoo told the National Assembly’s Public Accounts Committee that the government acted quickly after discovering the issue.

He confirmed that:

The suspicious transactions were immediately stopped
The funds in question were frozen and secured

PS Kiptoo also said the government has now taken full control of the e-Citizen platform and introduced stronger legal and financial safeguards to prevent similar incidents in the future.

Kenyans Overcharged on Services

The Treasury further admitted that users of the platform were overcharged due to a system error.

Instead of applying a fair service fee, the system charged a flat KSh 50 fee, leading to an excess collection of about KES 1.8 billion from users.

Parliament Launches Investigations

The National Assembly’s Public Accounts Committee, led by Tindi Mwale, has now launched investigations into the matter.

Several private companies linked to the platform have been summoned, including:

Webmasters Kenya Ltd
Pesaflow Limited
Goldrock Ltd

Lawmakers have raised concerns that the e-Citizen system may be operating without a strong legal framework. Some MPs are now calling for the platform to be temporarily shut down until full accountability is achieved.