e-Citizen Scandal as Millions Goes Missing

Auditor-General Nancy Gathungu has flagged discrepancies in government agency records, revealing at least Ksh. 144 million in unaccounted taxpayer funds collected through the e-Citizen platform, sparking concerns of possible embezzlement.

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.

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.

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.

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.

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.

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.

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.

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.